20th Feb 2019 14:38
LONDON (Alliance News) - Landore Resources Ltd on Wednesday said the results of a preliminary economic assessment of its BAM gold project in Canada show its potential.
Shares in Landore were down 14% at 0.90 pence per share on Wednesday.
The mineral resource estimate of the project is 28.8 million tonnes at 1.0 grammes per tonne for 951,000 ounces of gold. This includes 20.2 million tonnes at 1.1 grammes per tonne for 701,000 ounces of gold in the indicated category.
The base case for BAM considers the economics of exploiting a resource of 12.7 million tonnes at 1.26 grammes per tonne of our containing 515,000 ounces of gold. The upside case considers a 19.7 million tonne resource at the same grade containing 800,000 ounces.
The cost of the base case is USD806 per ounce with an extended case at USD816 per ounce. The initial capital expenditure for the plant an infrastructure at BAM is USD73.5 million plus USD20.3 million for pre-production.
Landore said exploration work so far demonstrates "significant resource potential" which warrants "follow up district scale exploration programs".
"We are very pleased with the results of the [preliminary economic assessment] which clearly demonstrates the robust nature and growth potential of the BAM gold project," said Landore Chief Executive Bill Humphries.
"We are confident that, with the conversion of the 'unclassified mineralisation' into resource together with infilling and extending the existing deposits, the project has a high probability of being advanced from the base case 515,000 ounces gold to the extended case 800,000 ounces gold with significant further upside," Humphries added.
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