Armstrong area gold prospector puts BAM deposit on the block

Landore Resources eyes sale or joint venture of its 1.5 million ounce gold property

A gold property in the Lake Nipigon region with “multi-million ounce” potential is being offered for sale by Landore Resources.

The British company said in a press release that it had begun a “strategic review” of its Canadian assets. The board would consider a sale of its Junior Lake project, specifically its BAM gold deposit, consider a joint venture agreement, strategic partnership or some sort of combination.

With 1.5 million ounces of gold in the ground, and more likely to be found, the company said its board believes the time is right to put BAM on the block. Meanwhile, a drill program is on hold for July.

The company released a preliminary economic assessment (PEA) of BAM in February and an updated gold estimate, which showed a 50% increase in resources.

The PEA profiles a two-pit operation with an on-site processing plant and a total mine life of 11.5 years, including pre-production. The initial capital outlay for the mine would be over US$85 million.

The project is located 235 kilometers northeast of Thunder Bay, 75 kilometers northeast of the village of Armstrong and is accessible by skid road, one kilometer from an operated gravel haul road by Buchanan Forest Products.

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The company said it has discovered and delineated “several deposits” and other areas of “significant mineralization” of more group metals gold, nickel, copper, cobalt and platinum on the 33,000 hectare property.

“The resource has excellent upside potential by remaining open at depth and along strike to the east and west, all within established mining leases that span over 20 kilometers of potential strike length.” Landore CEO Bill Humphries said in a statement.

“The Company is confident that the highly prospective Junior Lake property has the potential to host multi-million ounce gold resources and is currently exploring various strategic options to ensure the development of this fast-growing asset for the benefit of shareholders.”

Exploration and geological mapping in the area dates back to 1917. Canadian Dyno Mines surveyed and drilled the property in the late 1960s and outlined a gold deposit. Landore opted for part ownership from North Coldstream Mines in 1998 and recovered additional claims from Brancote in 2000.

The VW nickel deposit was discovered in 2005 followed by the BAM gold deposit in 2015.

Landore said they sit on a very prospective Archean greenstone belt, stretching east to west for 31 kilometers, where much of the mineral resources are found. The company adds that much of this belt remains unexplored.

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