Final Results and Notice of AGM

The Board of Landore Resources (AIM: LND) is pleased to announce its audited results for the year to 31 December 2020.

 

For more information, please contact:

 

Bill Humphries, Chief Executive Officer

Tel: 07734 681262

 

Glenn Featherby, Finance Director

Tel: 07730 420318

 

Cenkos Securities (Nominated Advisor and Broker)

 

Derrick Lee / Peter Lynch

Tel: 0131 220 9100

 

Chief Executive Officer's statement

 

I am pleased to present the 2020 Annual Report for Landore Resources Limited ("Landore Resources" or the "Group").

 

2020 was a challenging year for the globe due to the onset of a novel strain of coronavirus ("COVID-19") causing significant disruption to the commencement of the Group's Canadian operations. However, by mid-2020 Landore successfully resumed operations as per Government COVID-19 guidelines.

 

During 2020 all of Landore Resources' exploration efforts were focussed on the Junior Lake property with a 23,000 metre drilling programme aimed at further expansion of the highly prospective BAM Gold resource of 1,015,000 ounces of gold (reported by the Company on 7th January 2020). In addition, Landore completed an extensive exploration campaign westwards along strike for approximately 7 kilometres from the existing BAM Gold Project successfully identifying widespread anomalous gold and multiple gold trends.

 

Financial Results

 

In the year ended 31 December 2020, the Group incurred a loss, after tax, of £2,553,556 (2019: £2,145,920).

 

Operating expenses were in line with our budgets and expectations.  Details of funds generated during the year are set out below.

 

In January 2020, the Group raised £225,000 by the issuance of shares at a price of 0.7p per share.

 

In April 2020, the Group raised £260,000 by the issuance of shares at a price of 0.675p per share.

 

In July 2020, the Group raised a further £2.8 million by the issuance of shares at a price of 0.675p per share. Investors in both the April 2020 and July 2020 issues received one warrant per share purchased, as described in Note 16.

 

Share Consolidation

 

In August 2020, the Company announced a Consolidation of the Company's shares with the number of issued ordinary shares of no par value each in the Company ("Ordinary Shares") being reduced by a factor of 20.

 

Post-year end events

 

In February 2021, the Group raised a further £3.5 million by the issuance of shares at a price of 30p. The fundraising received good support from new and existing investors. This will allow the continued development of the identified BAM Gold Resource, the completion of a further exploration programme

 

along strike to other known gold prospects and the commission of a refreshed Preliminary Economic Assessment ("PEA") and Resource Report.

 

The Group is funded for the current exploration programme and has no debt. The Company will continue to raise further equity as needed to carry out its development plans. Shareholders have been very supportive of the Group's financing needs and the Directors are confident of raising further funds as required.

 

The Junior Lake Property:

 

The Junior Lake property, 100 per cent. owned by Landore, is located in the province of Ontario, Canada, approximately 235 kilometres north-northeast of Thunder Bay and is host to the BAM Gold Deposit, the B4-7 Nickel-Copper-Cobalt-PGEs Deposit and numerous other highly prospective mineral occurrences.

 

The Junior Lake property together with the adjacent 90.2% owned Lamaune Lake property extends for 31 kilometres across highly prospective Archean greenstone belt and covers an area of 30,507 hectares.

 

BAM Gold Deposit: In October 2020, Landore commenced a 23,000 metre drilling programme aimed at further infilling and extending the defined resource. To June 2021, a total of 17,070 metres had been completed. Drilling has successfully intersected gold mineralisation of similar widths and grade to the existing BAM Gold Deposit with several instances of visible gold ("VG"). Intersections included bonanza grade gold mineralisation in drill hole 0421-785 reporting 0.32 metres at 432.0 grams/tonne gold (g/t).  Further drilling is underway to establish strike extensions to the east and west of the defined deposit.

 

The BAM Gold Deposit now extends over 3.5 kilometres from local grid line 400E to 4100E remaining open to the east and west and down dip.

 

The continued rapid growth of the BAM Gold Deposit together with the possible future development of the other known gold prospects along this highly prospective 31 kilometre long Archean greenstone belt  bodes well for the future of the Junior Lake Property hosting a multi-million ounce gold deposit.

 

B4-7 Nickel-copper-cobalt-PGEs deposit: The burgeoning demand for electric cars has increased demand for battery metals such as nickel, cobalt and lithium. The Company is encouraged by the growth in this sector and thus has initiated an in-house economic analysis of its B4-7 deposit with the aim of its potential development. The B4-7 deposit and Alpha Zone contains 3,292,000 tonnes at 1.20% Nickel Equivalent (NiEq) in the Indicated category and 568,000 tonnes at 1.26% NiEq in the Inferred category for a total of 46,661 tonnes of contained metal.

 

Planned works for 2021: At the conclusion of the 2020-2021 drilling programme the Company is planning to commission an updated Mineral Resource Estimate ("MRE") and Preliminary Economic Assessment ("PEA") on the BAM Gold Deposit.

 

Social and Environmental Responsibility: The Group continues to enjoy solid working relationships with the local First Nations on whose traditional lands our Junior Lake Property is located. Landore believes that a successful project is best achieved through maintaining close working relationships with First Nations and other local communities.

 

On behalf of my fellow directors I wish to thank our shareholders for their continued support together with Landore's Management and Exploration team for their dedication and perseverance in advancing the highly prospective Junior Lake Property though this particularly challenging year.

 

William Humphries, Chief Executive Officer