Landore Resources Ltd

The Gold Didn’t Disappear – Landore Resources Just De-Risked itself and Set Up a District-Scale Prize

“…all of these things have pushed the headline number backwards, but really it’s improved the quality of the resource that we have. A 656,000 ounce indicated and inferred resource in Northwest Ontario is a significant ore body…”

The updated mineral resource estimate for Landore Resource’s assets is impressive, but it’s less than that stated four years ago when the previous MRE was published.

The re-evaluation was part of chief executive Alexander Shaw’s strategy to revisit, re-analyse, engage with sector experts and beyond all doubt know what the company had in its portfolio.

Since he took the helm 18 months ago, more exploration has been undertaken including additional drilling and data harvesting, and Shaw wanted a clinical audit resulting in a further refinement of the wireframe modelling which measures the mineralization and a new portfolio reality calculated. It also included the downside of gold hitting fresh record highs.  As the price of gold appreciates so too do the costs involved in the extraction and processing of the precious metal.

“What we’ve done is we’ve moved the resource into an area where we’re sitting with a very, very high level of confidence,” says Shaw.

Without undermining the previous MRE consultants, this time the board elected to use resource consulting firm SLR who are familiar with deposits in Ontario, are both conscientious and cautious and understood Canadian mining costs which have appreciated some 25% over the past few years.

That inflation, says Shaw, contributed to the optimization when the team looked at the pit shell and “unfortunately all of these things have pushed the headline number backwards, but really it’s improved the quality of the resource that we have.”

In spite of SLR’s caution, Shaw says what the updated estimate has given is “a far more detailed granular perspective on what we’re looking at. A 656,000 ounce indicated and inferred resource in Northwest Ontario is a significant ore body.”

As Alex explains to Sarah Lowther in this video interview, what Landore is now certain of is that it has a new orogenic gold system and it has only really touched the tip of the iceberg.  Shaw says at Junior Lake there is the opportunity for a regional district scale ore or mineralized system and “The gold hasn’t gone anywhere. The gold is still there.”