Landore losses widen as it continues development of Junior Lake

Landore Resources issued its annual report for the year ended 31 December on Friday, reporting a loss after tax of £3.3m, widening from £1.72m year-on-year.

The AIM-traded firm, which is pre-revenue, said its operating expenses were in line with budgets and expectations, and it also highlighted the £2.1m fundraise in March through the issuance of ordinary shares at a price of 2.7p.

That was followed by a further issue in October, raising £1m at a price of 2.0p per share.

Post year-end end, in March of this year, the board raised a further £3.15m at a price of 1.5p per share, as as a result, Landore said it was fully funded for its planned operational expenses for 2018.

The group had no debt, with the board saying it would continue to raise further equity as needed to carry out its development plans.

It said shareholders had been “very supportive” of its financing needs, and the directors remained confident of raising further funds as required.

On the operational front, Landore said that during the year the group concentrated exploration efforts on its highly prospective Junior Lake Property in Ontario.

The further delineation and extension of the defined BAM East Gold Deposit successfully increasing the resource to 400,000 ounces of gold at 1.37 grams/tonne, of which 326,000 ounces of gold was said to be in the indicated category.

“Our work programme this year is aimed at advancing the BAM East Gold Deposit towards a + 1 million ounces gold resource, discovery of further gold deposits along the Junior Lake Shear and progression of the BAM East Gold Deposit towards development with the completion of a Preliminary Economic Assessment report,” said CEO William Humphries.

“The spring/summer drill programme of 12,000 metres has commenced aimed at infilling the 900 metre gap between the BAM Deposit and the BAM East Gold Deposit and extending both deposits to the west and east respectively. Results to date are highly promising, with wide near-surface intersections of up to 41.27 metres at 1.10 g/t Au in drill hole 0417-628, and high grade gold including 24.90 g/t Au in drill-hole 0418-631.”

Humphries said the current infill drill programme showed that the gold mineralisation continued between the two deposits, almost doubling the overall length of the combined deposits to approximately 2,000 metres with “excellent potential” to add considerable ounces to the resource.

“The board believes that the fact that the 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.”