Landore Resources (LON:LND) has defined an exploration target containing up to 50,000 ounces of gold at the Lamaune deposit at its Junior Lake property in Ontario.
The initial exploration target of 1.35 million tonnes (Mt) to 1.65 Mt of mineralized material contains between 40,000 and 50,000 ounces of gold at a cut-off grade of 0.3 grammes per tonne (g/t).
Exploration at Toronto Lake at the western end of the Junior Lake property has identified two zones of anomalous gold mineralisations with grab samples returning up to 9.89 g/t.
Trenching and sawn channel sampling is currently in progress.
“Based on drilling results to date, the Lamaune Gold deposit represents a viable advanced exploration target.
“The quantity and grade reported in this mineral resource inventory are conceptual in nature, and it is uncertain if further exploration will result in upgrading the deposit to a mineral resource category,” said independent consultant Fred Brown, who was contracted to prepare a three dimensional model and conceptual mineral resource inventory for the Lamaune Gold deposit, based on the drilling data to date.
The Lamaune Gold deposit remains open at depth and to the east.
Landore is set to carry out extension drilling to the deposit in conjunction with infill drilling on the Lamaune iron deposit starting in Q1 2011. Drilling on the iron deposit is expected to advance that section to a NI43-101 compliant resource.
Landore has commenced a program of marketing its Lamaune iron deposit, which contains contains an estimated 45 Mt at 26% iron to 250 Mt at 37% iron, with North American steel producers and iron ore miners, while evaluating transportation options in the Great Lakes steel market.
The Lamaune gold deposit was discovered in late 2008 by sampling prospective structures and sulphide mineralization of the Lamaune iron diamond drill core for gold.
A drill campaign was completed on Lamaune Gold in the 2009/10 drilling programs, intersecting narrow vein high grade gold and wide zones of lower grade gold mineralization including 0.6 metres grading 118.66 g/t gold and 21.5 metres at 0.99 g/t gold.
Landore has also completed preliminary metallurgical testing of representative samples from Lamaune Gold which indicates that gold recovery from pulp material is 94.4%.
The company has been stepping up its exploration efforts at Junior Lake with exploration costs rising to £1.5 million in the first half.
The project is split in four main areas - the VW Nickel deposit, the B4-7 deposit, the Lamaune iron deposit and the Lamaune gold prospect.