By Dr. Michael Green
In the resources world today, Landore seems to have it all – multi-million ounce gold potential as well as NI 43-101 Indicated resources of nickel and copper resources which go straight into a Preliminary Economic Assessment (PEA) tomorrow. If that wasn’t enough there are assay results to look forward to from a 14,000m drilling programme starting to be announced in the coming weeks.
Last week, Landore was able to unveil the results of its 2020 soil sampling program carried out along strike to the east and west of its BAM Gold Project at its cracking Junior Lake Property in Ontario, Canada. The more we look at these results the greater the potential that is rapidly becoming obvious to us with soil sampling revealing that the currently defined BAM Gold deposit extends some 2km both to the east and to the west. This is big news.
At the time Bill Humphries CEO was quick to point out that “The highly successful soil sampling programmes, completed in 2020 and in 2019, has established the presence of widespread anomalous gold and multiple gold trends along strike to the east and west of BAM Gold for a total length of 8 kilometres. These programmes have identified numerous new drill targets which have the potential of being advanced into additional resources to continue the rapid growth of the BAM Gold Project.”
The back story here is over the years, Landore has made a series of impressive discoveries and by 2013 the Junior Lake Property was fast shaping up to be a significant Nickel-Copper-PGEs region. However, when the nickel price went south, a chance gold discovery led to identification of the BAM Gold Project which has rapidly eclipsed all previous discoveries.
A standing joke was that they were going to call the project “The Periodic Table” as it has a mix of lithium, gold, silver, nickel, copper, cobalt, platinum and palladium. As far as the gold is concerned Landore is blessed with multi-million ounces of gold along a 30km + strike length. Truth is that the Junior Lake Property has one of the best addresses for gold mining in the world. A 1.015Moz resource has been delineated from just 6km of this highly prospective greenstone belt that extends across Landore’s acreage. A Pit Optimisation Review last year determined a NPV(5) US$370 million at US$1,900 gold for a 9 year LOM. A renewable 21-year mining lease is already in place.
This stock really deserves to capture investor’s attention as management is seeking to mastermind a possible full-priced exit. After messing around raising dribs and drabs of funding, last year the company raised a decent amount to really do the project justice. This well-funded infill/expansion drill programme, coupled with the arrival of eminent gold investor Eric Sprott as an almost 10% shareholder, looks set to re-invigorate Landore. On the cards is a big increase in the resource base plus further evidence of good continuity along the 31km trend and extension at depth. The feeling is that the gold deposits could lie along this strike length like a string of pearls. This is just what the major players are looking for.
In companies of this sort, management is probably as important as the project. Landore’s management team are proven mine finders who have discovered 7Moz of gold. Bill Humphries was MD at Brancote Holdings (1999 – 2002), a gold explorer with the same business model, which went from 14p to be taken over at 200p plus. It has got to be said that Bill knows how to get top dollar from bidders.
The latest drilling programme on the BAM Gold Deposit, consisting of 14,000 metres of HQ diamond core, began in October 2020. The work is aimed at further infilling and extending the defined resource of 1.05Moz of gold and to test the depth potential of the previously delineated mineralisation. The drilling programme is expected to be completed in April 2021. It’s been going well and half the holes have been drilled. A rising gold price has seen a significant increase in drilling activity and the labs are overloaded with one leading lab talking about needing 7-8 weeks to complete a full analysis – twice as long as normal.
If that wasn’t enough, it should be remembered the Junior Lake Property was initially seen as being a significant Nickel-Copper-PGEs region with the B4-7 Nickel-Copper-Cobalt-PGEs Deposit and the VW Nickel Deposit. Well, the B4-7 Nickel-Copper-Cobalt-PGEs Deposit has been delineated over 800m of strike length with the B4-7 massive sulphide mineralisation remaining open to the west along strike and down dip. It also comes with an upgraded Mineral Resource Estimate (MRE) which was completed in 2018.
Meanwhile, the VW Nickel deposit, which outcrops on the surface, was discovered by Landore in late 2005 in the central part of Junior Lake and has an NI 43-101 compliant MRE update on this deposit which was also completed in 2018. B47 lies 1km from BAM Gold and VW is just 2km away – which means that the whole caboodle could be mined as one.
Whatever is really here, the truth is that the team is properly starting to unlock it now. It has taken a few years, but 14,000m will give one hell of an insight into the rapidly growing potential. Also, there are other nickel deposits (like Carrot Top 11km from B47) and the feeling is that the nickel/copper might mimic the gold and might also lie in a string of pearls. This is all worth bearing in mind considering all the excitement around nickel and copper at the moment.
We initiated coverage on Landore Resources in September 2020, when the shares were sitting at 19.2p, with a Conviction Buy recommendation and a target price of 81.38p. The stock is now sitting at 35p, but we believe that there is a lot more to come.
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