Landore Resources Limited Regulatory News (LND)

26 Mar 2008 07:00

Landore Resources Limited26 March 2008 LANDORE RESOURCES LIMITED (AIM Ticker: LND.L) 26th March 2008 JUNIOR LAKE-VW NICKEL PROJECT RESOURCE UPGRADE STATEMENT THE RECENTLY COMPLETED EXTENSION AND INFILL DRILLING CAMPAIGN ON THE VW NICKELDEPOSIT HAS SUBSTANTIALLY UPGRADED THE RESOURCE: •Increasing the global resource base by 48% to 22,407 tonnes Nickel Equivalent (NiEq) at 0.2% Nickel cut-off grade. •Upgrading the resource significantly with 91% now in the "Indicated" category. The resource estimated in 2007 by Scott Wilson RPA resource was all in the "Inferred" category. •Improving the average grade of the resource by 25% to 0.45% NiEq at 0.2% Nickel cut-off grade. •Mineralization on the VW Nickel Deposit remains open along strike in both directions to the east and west as well as at depth. Commenting on the report, Chairman of Landore Resources, Bill Humphries, said: This substantially increased Resource confirms our view of the strong economicpotential of the VW Nickel deposit. We will be moving ahead with the scoping andfeasibility studies with the aim of becoming a Nickel producer whilst continuingto expand the Resource. Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA), Toronto, wasretained by Landore Resources Canada Inc. (Landore) to independently carry out aCanadian National Instrument 43-101 compliant resource estimate for the VWNickel Deposit located at Landore's Junior Lake project, Ontario. VW resource estimate at 0.2% Nickel Cut-Off Grade, Extract from the resource estimate table produced by Scott Wilson RPA. (SeeAppendix A)+---------------------------------------------------------------------------+|Indicated Resource |+---------+--------+-------+-------+-------+-------+-------+-------+--------+|Cut-Off |Tonnes |Ni% |Cu% |Co ppm |Pt ppb |Pd ppb |Au ppb |NiEq% ||Grade Ni%|(000's) | | | | | | | |+---------+--------+-------+-------+-------+-------+-------+-------+--------+|0.2% | 4,490 | 0.393 | 0.054 | 155 | 28 | 36 | 11 |0.453 |+---------+--------+-------+-------+-------+-------+-------+-------+--------+ +---------------------------------------------------------------------------+|Inferred Resource |+---------+--------+-------+-------+-------+-------+-------+-------+--------+|Cut-Off |Tonnes |Ni% |Cu% |Co ppm |Pt ppb |Pd ppb |Au ppb |NiEq% ||Grade Ni%|(000's) | | | | | | | |+---------+--------+-------+-------+-------+-------+-------+-------+--------+|0.2% | 473 | 0.380 | 0.050 | 147 | 30 | 35 | 11 |0.437 |+---------+--------+-------+-------+-------+-------+-------+-------+--------+Extract ends. +--------------------------------------------------------------------------+| Contained Metal |+-----------------+-------+-------+-------+-------+-------+-------+--------+| | Ni | Cu | Co | Pt | Pd | Au |NiEq || |Tonnes |Tonnes |Tonnes |Ounces |Ounces |Ounces |Tonnes || | | | | | | | |+-----------------+-------+-------+-------+-------+-------+-------+--------+| Total contained |19,443 | 2,661 | 765 | 4,498 | 5,729 | 1,755 |22,407 || metal | | | | | | | |+-----------------+-------+-------+-------+-------+-------+-------+--------+ The contained Nickel in the global resource base increased by 36%. In the 2007resource estimate cobalt was not included. However, results from drilling in therecently completed campaign showed a marked increase in cobalt levels in thewestern extension of the resource. Accordingly, cobalt has been included in thenew resource estimate and contributes to the increased global resource. Junior Lake: The Junior Lake property is located in the province of Ontario, Canada,approximately 235 kilometres north-northeast of Thunder Bay and is situatedwithin the Caribou-O-Sullivan Greenstone Belt in the Wabigoon Subprovince. TheVW Nickel Deposit is located at Ketchikan Lake toward the south eastern end ofthe Junior Lake property. During 2007 an infill and extension drill programme, consisting of 63 NQ sizeholes (0407-99 to 0407-161,178) for a total of 17,361 metres, was completed onthe VW Nickel Deposit. Drilling has now tested the VW Nickel deposit at approximately 25 x 50 metrespacing over a strike length of 450 metres and to a vertical depth ofapproximately 300 metres. This close drill spacing has provided sufficientconfidence for the majority of the resource to be advanced to the "Indicated"category, a necessary requirement for feasibility studies. Mineralization on the VW Nickel Deposit remains open along strike in bothdirections to the east and west as well as at depth. Ongoing works. Scott Wilson RPA is currently preparing a Canadian NationalInstrument 43-101 (NI43-101) compliant technical report on the resource upgradefor the VW Nickel deposit. SGS Lakefield Research Limited of Lakefield, Ontario, is carrying out additionalmetallurgical testing in preparation for scoping and pre feasibility studiesscheduled for the second half of 2008. Following receipt of the Technical report, drilling will re-commence on the VWNickel deposit, with 8,000 metres being programmed for further extension andinfill drilling, 1,000metres for geotechnical work on the VW deposit foropen-pit design requirements and a further 3,000 metres for exploration of knownmineralized occurrences on the Junior lake property. James Garber, (BSc. Hons. Geology, member of APGO) a Director of LandoreResources Ltd and a qualified person as defined in the Canadian NationalInstrument 43-101, has reviewed and verified all scientific or technical miningdisclosure contained in this announcement, which is stated in accordance withthe Canadian Institute of Mining Metallurgy and Petroleum. Mr. Richard Routledge, M.Sc., P. Geo., Consulting Geologist with Scott WilsonRPA, prepared the resource estimate for Landore Resources Canada Inc. Mr.Routledge is a Qualified Person in accordance with the requirements of theCanadian National Instrument 43-101. - ENDS - For more information please contact: Bill Humphries, Chairman Tel: +44(0)7734 681262Richard Prickett, Chief Executive Tel: +44(0)7775 651421Landore Resources Limited www.landore.com Simon Raggett Tel: +44 (0)20 7409 3494Strand Partners Limited David Bick Tel: +44 (0)7831 381201 APPENDIX A RESOURCE ESTIMATE PREPARED BY SCOTT WILSON RPA. VW Zone Resources at Various Cut-Off GradesLandore Resources Canada Inc. - Junior Lake Project, VW Zone, Ontario Indicated ResourceCut-Off Tonnes Ni% Cu% Co ppm Pt ppb Pd ppb Au ppb NiEq%Grade Ni% (000's)0.2% 4,490 0.393 0.054 155 28 36 11 0.4530.3% 2,826 0.475 0.061 177 28 40 12 0.5420.4% 1,581 0.578 0.067 206 30 46 12 0.6540.5% 837 0.697 0.075 238 30 55 12 0.7840.6% 502 0.799 0.079 255 32 63 12 0.8920.7% 322 0.884 0.079 268 33 69 12 0.9800.8% 181 0.992 0.087 293 31 75 11 1.0960.9% 117 1.076 0.092 312 31 79 11 1.1861.0% 69 1.166 0.092 321 30 82 10 1.278 Inferred ResourceCut-Off Tonnes Ni% Cu% Co ppm Pt ppb Pd ppb Au ppb NiEq%Grade Ni% (000's) 0.2% 473 0.380 0.050 147 30 35 11 0.437 0.3% 305 0.448 0.057 167 30 38 12 0.512 0.4% 146 0.562 0.062 197 32 46 12 0.635 0.5% 77.5 0.669 0.066 222 35 56 12 0.750 0.6% 48.1 0.742 0.069 236 37 61 13 0.828 0.7% 28.4 0.812 0.068 239 40 69 12 0.900 0.8% 9.5 0.944 0.073 269 38 90 11 1.041 0.9% 4.6 1.052 0.092 303 35 78 12 1.161 1.0% 2.3 1.167 0.088 317 36 99 9 1.279 Notes: 1. CIM definitions were followed for Mineral Resource estimation and classification. 2. Mineral Resources are constrained by wireframes constructed at a minimum grade of 0.2% Ni. 3. Block grades were estimated by inverse distance squared interpolation. 4. High assay values were capped based on lognormal distribution: Ni at 2.5%; Cu at 0.8%, Pt at 300 ppb, Pd at 550 ppb and Au at 100 ppb. Cobalt assays were not capped. 5. Mineral Resources are estimated using average long-term metal prices (US$) of $8.00/lb nickel, $2.00/lb copper, $25.00/lb cobalt, $1,200/oz platinum, $350/oz palladium and $750/oz gold. 6. An open pit discard grade for US$8.00/lb Ni is approximately 0.3% Ni whereas for Ni spot prices and futures for Ni of US$12/lb as of January 2008, the open pit discard is approximately 0.2% Ni. Scott Wilson RPA recommends reporting resources at the 0.3% Ni cut-off. 7. US$/C$ exchange rate of 1.05. 8. Bulk density is 3.01 t/m3. 9. Resources were estimated to a maximum depth of approximately 315 m. 10. Nickel equivalent factors are: 0.26 x Cu%; 2.38 x Co%, 0.19 x Pt ppm, 0.06 x Pd ppm; and 0.12 x Au ppm. The low content of the precious metals may not be payable but they contribute to