18:00 Tue 07 Jan 2020
Landore Resources Ld - BAM Gold Deposit Mineral Resource Estimate Update
(AIM Ticker: LND.L)
MINERAL RESOURCE ESTIMATE UPDATE
BAM GOLD DEPOSIT
JUNIOR LAKE PROPERTY
Highlights:
· The new Mineral Resource Estimate (MRE) modelling has increased the BAM Gold resource to: 31,083,000 tonnes (t) at 1.02 grams/tonne (g/t) for 1,015,000 ounces of gold including 21,930,000t at 1.06g/t for 747,000 ounces gold in the Indicated Category.
· The
· The BAM Gold Deposit now extends for 3,700 metres from 400E to 4100E and remains open down dip and along strike to the east and the west. In addition the recently completed Soil sampling program has identified widespread gold mineralisation along strike to the west for a further 7 kilometres.
· The BAM Gold Deposit is located approximately mid-way along a highly prospective Archean greenstone belt which traverses the Junior
Commenting on this report, Chief Executive Officer of
"Landore's exploration effort for 2019 concentrated on establishing the potential growth of the
The directors believe that the continued growth of the BAM Gold Deposit together with the possible future development of new discoveries along this highly prospective 31 kilometre long Archean greenstone belt has further enhanced the likelihood of the Junior
Summer Drilling Campaign 2019:
An infill drilling campaign, consisting of 24 holes HQ diamond core for a total of 3,966 metres, was completed on the BAM Gold Deposit aimed at advancing the inferred portion of the existing resource to the Indicated category for inclusion into the upgraded Mineral Resource Estimate.
Up to
The results of the above drilling campaign have been incorporated into the following Mineral Resource update.
"CUBE Mineral Resource Estimate (MRE) Executive Summary:
Landore is a fully-owned subsidiary of
The BAM Gold Project Mineral Resources have been classified in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code"). Table 1 is a summary of the Indicated and Inferred Mineral Resources, effective as of 30th
Table 1:
Resource Category | Min. Domain | Au g/t cut off | Tonnes (kT) | Grade (g/t Au) | Contained Metal (kOz Au) |
Indicated | ALL | >0.0 | 25,537 | 0.94 | 772 |
>0.3 | 21,930 | 1.06 | 747 | ||
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Inferred | ALL | >0.0 | 10,757 | 0.81 | 280 |
>0.3 | 9,153 | 0.91 | 268 | ||
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Total | ALL | >0.0 | 36,293 | 0.90 | 1,052 |
>0.3 | 31,083 | 1.02 | 1,015 |
The objectives of the November MRE were to quantify the global in-situ gold resource, provide models suitable for pit optimisation, mine planning, and MRE reporting with assigned Mineral Resource classification categories, after incorporating all available drilling data and geological interpretations provided by Landore.
Geology and Mineralisation
A highly prospective Archean greenstone belt traverses the Junior
Mineralised structures appear to strike at approximately parallel to lithology's, averaging at 280° strike and steeply dipping to the south between -65 to -80°. Gold mineralisation remains open along strike to the east and west, and down dip.
The gold mineralization is interpreted to reside within a series of tabular shaped zones that are oriented in a roughly en-echelon configuration and are generally parallel to the overall strike of the host rock units. The gold mineralization is commonly observed in drill core to exist as visible gold that is hosted by very thin, foliation-parallel quartz-rich veinlets, hosted by highly fissile ultramafic sediments of the BAM Sequence, or by foliated rocks of the Grassy
Drilling
From 2015 to 2019, Landore has completed several diamond drilling campaigns at the
The 2019 drilling has confirmed the continuity of the gold mineralisation within the pit design areas resulting in conversion of Mineral Resources from Inferred to Indicated, and also demonstrated the continuation of the main BAM mineralisation to the west to local grid line 400E.
The drilling has continued to show the close association between gold mineralisation and the VTEM geophysical anomaly trend. The BAM gold mineralisation trend has now been confirmed by diamond drilling over a strike length 3.9km, extending from the local grid line 400E and passed line 4000E. Drill testing has confirmed gold mineralisation within the main BAM zone extends from below the glacial till overburden (~10m average depth) surface to a maximum vertical depth of approximately 380m. The maximum width of the gold mineralisation envelope being approximately 50m, down to minimum mining width of 3m.
The 2019 drilling results also intersected additional narrow, poddy gold mineralisation zones with the hanging wall GPS unit within the
Gold mineralisation hosted within the BAM sequence remains open to the east and west and down dip.
Mineral Resource Estimation
· Up to
· Geological and mineralisation interpretations in plan and cross sections were followed up with 3D wireframe models based on analysis of all the recent information collated. A total of 28 mineralised domains were modelled for the
· After assessment of all grade distribution and statistical data analysis, it was decided that no grade capping would be used for any of the domains as there was either no material difference when applying suitable top cut values, or there were no significant grade outliers within the compositing data inside the estimation domains. Instead a cut-off threshold was applied beyond a set distance away from the higher grade composites was applied (half drill hole spacing or 25m).
· Samples were composited to 2m within the main BAM estimation domain in order to reduce the variability inherent in raw samples or a smaller composite length relative to estimation resource model block dimensions. The 2m composite length is also closer to mining
· Variogram modelling conducted to provide parameters for OK estimation method - nugget, sill and range for 3 directions.
· Kriging Neighbourhood Analysis ("KNA") was used to assist with assessing the most appropriate block sizes and other estimation parameters such as minimum and maximum samples, discretisation, to be used for the estimation.
· Parent block size of 20m x 5m x 5m in the X, Y, Z directions respectively was used and they were sub-blocked to 5m x 2.5m x 2.5m. This was deemed to be appropriate for block estimation and modelling the selectivity for an open pit operation.
· Ordinary Kriging ("OK") estimation method was used to estimate gold into the 3D block model using spatial data analysis parameters informed from the variogram and KNA analyses.
· Au estimated in 2 passes - 1st pass using optimum search distances for each domain (max 100m) as determined through the KNA process, with a 2nd pass set at longer distances in order to populate all blocks (2nd = max >200m,).
· Blocks have been classified as Indicated Mineral Resources or Inferred Mineral Resources. The resource classification is based on the quality of information for the geological domaining, as well as the drill spacing and geostatistical measures to provide confidence in the tonnage and grade estimates. At lower depths and along strike, with limited to no composite data, projected mean grades were applied in the interpolation search - these areas were assigned as unclassified material.
· The estimation domaining, MRE parameters, classification and block model report replication have all been internally peer reviewed by qualified professionals at Cube.
The 2019 drilling resulted in the increase in Indicated and Inferred Resource of 7% (contained metal) above a cut-off of 0.3g/t Au compared with the Cube MRE reported in
Pit Optimisation and Mine Design
Given the shallow nature of the mineralization and the initial metallurgical test results, material could be extracted by means of open pit mining methods and processed using conventional milling techniques. 3DM modelling and block construction were created with aim of preparing a suitable model for open pit mine design and pit optimisation.
3DM modelling and block construction have been created with aim of preparing a suitable model for open pit mine design and pit optimisation, with a minimum mining width of 3m. Internal dilution has been considered by re-blocking the resource block model, with a maximum downhole width of 3m (2.5m true width) of sub-grade material (<0.3g/t Au). The minimum block dimensions were selected based on a mining
An information effect was applied to the model and as such, the model was presented as a recoverable resource, implying that the practicalities of the mining operations are accounted for in the estimation process. As a result, Cube has not applied any further mining dilution or ore loss factors to the model.
Metallurgy
A series of metallurgical test programs have been carried out on samples from the BAM Gold Deposit. ALS Metallurgy Americas was engaged by LND in
LND completed additional metallurgical testing on the
Exploration Potential
The step out drilling conducted for the 2019 drilling program further confirmed the correlation of an IP anomaly from geophysics conducted in 2004 with the main BAM gold mineralisation trend to the west, which remains open and un-tested.
Future drill testing recommendations to target gold mineralisation still open along strike and down dip and further targets identified and based on the following data are listed as follows:
· Highly prospective soil geochemistry results based on sampling in 2019.
· IP anomaly targets have been identified by LND previously in 2004 and related to FW massive to disseminated sulphides zones within the main BAM Au mineralised units. In addition there are 3 to 4 WNW trending anomalies that are possible targets for exploration drilling (northern anomalies), and step-out drilling along strike from the BAM sequence;
· Regional Prospectivity - other gold mineralisation targets along the 31km strike length of the Junior
Cube is an Australian owned geological and mining engineering consulting services company located in
End of CUBE Mineral Resource Estimate (MRE) Executive Summary"
Planning:
A drilling programme is under consideration to further extend the known BAM Gold Zone to the east and west and to test any potential mineralisation identified in the recently completed Soil Sampling Exploration program (as reported 9th December 2019).
In addition, several deep holes are planned to test the continuity of high grade mineralisation below the existing BAM Gold Deposit.
BAM Gold Deposit:
The BAM Gold Deposit, discovered in
BAM Gold Resource and PEA:
A Technical Report and Preliminary Economic Assessment ("PEA") of the
The Junior
The Junior
A highly prospective Archean greenstone belt traverses the Junior
- ENDS -
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Nominated Advisor and Broker
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Glossary of Key Terms
"assay" | The chemical analysis of rock or ore samples to determine the proportions of metals
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"Au" | chemical symbol for gold |
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"diamond drilling" | drilling method which obtains a cylindrical core of rock by drilling with an annular bit impregnated with diamonds
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"drill core" | The cylindrical rock samples obtained by means of annular-shaped rock-cutting bits rotated by a borehole-drilling machines
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"g/t" | grams per tonne, equivalent to parts per million
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"grade" | relative quantity or the percentage of ore mineral or metal content in an ore body
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"greenstone" | green, chlorite rich, generally metavolcanic rocks resulting from low temperature and pressure metamorphism
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"indicated resource" | that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed
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"inferred resource"
| that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability |
"IP" | an electromagnetic geophysical method that uses electrodes with time-varying currents and voltages to map the variation of electrical permittivity (dielectric constant) in the earth at low frequencies
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"Kriging" | A method of interpolation which predicts unknown values from data observed at known locations. It uses the variogram to express spatial variation, and minimizes the error of predicted values that are estimated by spatial distribution of the predicted values
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"mineral resource" | a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such form that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing confidence, into Inferred and Indicated categories
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"mineralisation"
"NI 43-101" | process of formation and concentration of elements and their chemical compounds within a mass or body of rock
The reporting standard adopted for the reporting of the Mineral Resources is that defined by the terms and definitions given in the terminology, definitions and guidelines given in the
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"reserve" | the economically mineable part of a Measured and/or Indicated Mineral Resource
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" | selective mining unit-sized blocks
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"strike length" | the longest horizontal dimension of an orebody or zone of mineralisation
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"strike" | The direction, or bearing from true north, of a vein or rock formation measure on a horizontal surface
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"veinlets" | a deposit of non-sedimentary origin, which may or may not contain valuable minerals |
This information is provided by RNS, the news service of the
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