Landore Resources Limited (LON:LND) believes recent exploration work at BAM on its Junior Lake licence in Ontario has confirmed a substantial gold resource.
“The fact that BAM gold mineralisation delineated to date remains open both to the East and West and down dip/plunge clearly demonstrates this discovery's huge potential,” said Bill Humphries, chief executive.
Losses after tax in 2017 were £3.3mln (£1.7mln) as the company stepped up its activities at BAM East.
In March, the group raised £3.15mln which will fully fund this year’s exploration programme. Landore has no debt.
Work is already underway to increase the gold resource at the BAM East deposit to one million ounces.
BAM East currently has a resource of 400,000 ounces of gold at 1.37 grams/tonne of which 326,000oz are in the indicated category.
The drilling will also explore for additional gold deposits along the Junior Lake Shear.
BAM East is 900m away from the BAM deposit and drilling in the corridor in-between has also indicated wide near-surface intersections of gold.
This continuation almost doubles the overall length of the combined deposits to approximately 2,000 metres.