(AIM Ticker: LND.L)
In addition,
- The Mineral Resource Estimate of the
BAM Gold Project at a 0.3g/t cut-off is: 49,231,000 tonnes (t) at 1.0 grams/tonne (g/t) for 1,496,000 ounces of gold (oz Au) including 30,965,000t at 1.0g/t for 1,029,000 ounces gold in the Indicated Category. - The PEA considers the economics of exploiting resources inside optimised pit shells of 22.4 Mt at 1.16g/t Au containing 833,000 ounces gold using a long term gold price of
US$1,800 . The project assumes the construction of a 2.2 Mt per annum processing plant over 4 quarters followed by a production period of 10.5 years. - The PEA indicates that the
BAM Gold Project generates a pre-tax and post-tax NPVS of, respectively,US$333.6M andUS$231.2M and pre-tax and post-tax real IRRs of 87.4% and 66.7%.The BAM Gold Project has an after-tax simple pay back of 1.25 years from the start of production or 2.25 years from the start of project.
- In light of the significance of the BAM Gold and Battery Metals deposits located on the
Junior Lake property, as announced in the Company's Mineral Resource Estimate (MRE) update released on 8thFebruary 2022 , the Directors will now review the strategic options available to the Company in relation to the Company's Canadian subsidiary/assets. The options under the Strategic Review will consider options including the sale of all or a part of its wholly owned subsidiary,Landore Resources Canada Inc. , or theJunior Lake Project , potential joint venture arrangements or strategic partnerships, or a combination thereof. - The Board believes the Strategic Review process is appropriate at this stage of the Company's development to help the Board achieve its objective in maximizing shareholder value. The BAM MRE has now reached 1.5 million ounces of gold and the Board believes that it has the clear potential to become a multi-million ounce gold project. Whilst the above process is undertaken, the Company will continue to seek to advance the
BAM Gold Project towards future development, with further drilling planned to commence inJuly 2022 . - Strand
Hanson Limited ("Strand Hanson") has been appointed as Financial Advisor in connection with the Strategic Review. Any parties interested in submitting an indication of interest should contact Strand Hanson via the contact details shown below.
Commenting on this report, Chief Executive Officer of
"This Preliminary Economic Assessment, combined with the 50% resource increase reported in
Over half of the gold resources delineated to date are extractable by cost-effective open pit mining. This coupled with the 98% recovery achieved by conventional milling demonstrates the BAM Gold Deposit's potential for low capex costs and economical mining operation. Other advantages include the project's road accessibility and proximity to national rail thus ensuring secure market access.
It is the Company's belief that the highly prospective Junior
The full Technical Report and Preliminary Economic Assessment can be found on Landore's web site www.landore.com
Extracts from CUBE Technical Report and Preliminary Economic Assessment
Landore has successfully delineated several deposits and other potential areas of significant mineralization throughout the Junior Lake property including the BAM Gold Deposit, the Lamaune Gold Prospect, the B4-7 Ni-Cu-Co-PGE Deposit, and VW Ni Deposit. The main focus of this report is the BAM Gold Deposit which is located in the south-central area of the Junior Lake property and is interpreted as an Archean-aged mesothermal gold deposit.
Recent exploration and development drilling activity have highlighted the following:
- Acquisition of additional mining claims.
The Junior Lake property now consists of six mining leases and 1,318 staked mining claims, all together totaling approximately 33,029 ha. - The results of the soil sampling programs in 2019 and 2020 indicated a possible linking of gold anomaly trends over several hundred metres strike length for several Junior Lake prospects.
- The infill and step out drilling conducted for the 2020-2021 drilling programmes further confirmed the correlation of previously defined geophysics anomalies within the main BAM gold mineralisation trend and provided upgrades to the BAM Mineral Resource estimate.
The 2020-2021 diamond drilling consisted of 102 HQ size drill holes (0420–725 to 0421–826), for 24,361 metres. The BAM gold mineralisation trend has now been tested by diamond drilling over a strike length 4.5 km. The 2020-2021 drilling has:
- Continued to show the close association between gold mineralisation and the VTEM geophysical anomaly trend
- Confirmed the extension and continuity of the gold mineral resources at depth within the main BAM mineralisation zone
- Identified additional gold mineralization within the hanging wall GPS unit.
- Demonstrated the continuation of the main BAM gold mineralization to the east and west
- Infill drilling has also allowed for conversion of Mineral Resources from Inferred to Indicated.
The
Given the shallow nature of the mineralization and the initial metallurgical test results, material could be extracted by means of open pit mining methods and processed using conventional milling techniques. 3DM modelling and block construction were created with aim of preparing a suitable model for open pit optimisation and mine scheduling. A US
For the preliminary economic analysis, the
Based on exploration work completed by Landore up to
Mineral Resources
The BAM Gold Project Mineral Resource, Effective Date as at
Table 1 is a summary of the Indicated and Inferred Mineral Resources, effective as of
Resource Category | Material Type | Au g/t cut off | Tonnes (kT) | Grade (g/t Au) | Contained Metal ( |
Measured | ALL | >0.3 | 0 | 0 | 0 |
Indicated | ALL | >0.3 | 30,965 | 1.0 | 1,029,000 |
Inferred | ALL | >0.3 | 18,266 | 0.8 | 467,000 |
Notes: | |
1 | Effective date |
2 | Mineral Resources are estimated at a block cut-off grade of 0.3 g/t Au. |
4 | A minimum mining width of two metres was used. |
5 | Bulk densities for the main host rocks are 2.82 t/m3, 2.84 t/m3, and 2.90 t/m3. |
6 | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
7 | Figures may not add up due to rounding |
Based on the current input parameters that have been used for the 2022 pit optimization by Cube, a 0.3 g/t Au lower cut-off was deemed appropriate for the
At a cut-off grade of 0.3 g/t Au, the Mineral Resources are reported here within the pit optimization Run B open pit shell. The Run B open pit shell includes Indicated Mineral Resources and Inferred Mineral Resources. The figures reported in Table 2 are estimated using a long-term gold price of
Resource Category | Material Type | Au g/t cut off | Tonnes (kT) | Grade (g/t Au) | Contained Metal ( |
Measured | ALL | >0.3 | 0 | 0 | 0 |
Indicated | ALL | >0.3 | 21,922 | 1.1 | 785,000 |
Inferred | ALL | >0.3 | 1,483 | 1.5 | 72,000 |
Notes: | |
1 | Effective date of |
2 | Mineral Resources are estimated at a block cut-off grade of 0.3 g/t Au. |
3 | Mineral Resources are estimated using a long-term gold price of |
4 | A minimum mining width of two metres was used. |
5 | Bulk densities for the main host rocks are 2.82 t/m3, 2.84 t/m3, and 2.90 t/m3. |
6 | Mineral Resources are constrained by a preliminary pit shell generated in Whittle software. |
7 | Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. |
8 | Figures may not add up due to rounding |
The pit optimization study resulted in two distinct areas, an east pit optimisation (
Figure 1 shows a plan view of the pit designs in relation to the block model mineral resources and based on the Run B scenario (Indicated and Inferred Resources) from the
There are no Mineral Reserves estimated for the
Preliminary Economic Assessment
The BAM project base case considers the economics of exploiting a resource of 22.4 Mt at 1.16 g/t containing 833 koz Au. Metallurgical recoveries of 98% are envisaged to yield 816 koz.
Capital costs are derived from estimates provided by Landore and based on examples for capital costing studies for similar and larger mining projects economic assessments in
The project assumes the construction of a 2.2 Mtpa processing plant over four (4) quarters followed by a mine production period of 10.5 years. Mining, which is assumed to be undertaken by a contractor with a contractor fleet, will begin one (1) quarter before mill processing and end two quarters prior to mill processing completion. Overall, with pre-production, mine production and mill processing, the total mine life is estimate at 12 years.
The project assumes a constant dollar (i.e. real) gold price of US
The base case generates a pre-tax and post-tax NPV of respectively US
The base case has an after-tax simple payback period of 1.25 years from start of production or 2.25 years from start of project. The all-in-sustaining cost (AISC during production) is US
A summary of the project physicals is shown in Table 3.
Project Physicals (LOM) | Units | Base Case |
Project Life (Total) | Years | 11.50 Yr(s) |
Years | 10.75 Yr(s) | |
Ore Mined | kt | 22,388 |
Waste Mined | kt | 178,168 |
Total Mined | kt | 200,555 |
Gold Grade | g/t | 1.16 g/t |
Contained Au Mined and fed | oz | 832,620 |
Plant feed | kt | 22,388 |
Au Recovery | % | 98.0% |
Au Recovered | oz | 815,967 |
A summary of ungeared financials are summarized in Table 4.
Project Financials (Ungeared): real unless stated | Units | Base Case |
Gold Price (Average LOM) | USD/oz | 1,800 / oz |
Net Gold Revenue (Ex Site) | USD M | 1,464.66 |
Mining Costs | USD M | 569.95 |
Plant and Other Operating costs | USD M | 348.08 |
Operating Margin | USD M | 546.63 |
Margin % of Ex-Site Revenue | % | 37.3% |
Initial Capex | USD M | 85.45 |
Sustaining Capex and | USD M | 2.24 |
C1 Cost | USD / oz | 1,130 / oz |
C2 Cost | USD / oz | 1,239 / oz |
C3 Cost (including Ontario Provincial | USD / oz | 1,283 / oz |
C3 Cost (excluding Ontario Provincial | USD / oz | 1,239 / oz |
AISC including Ontario Provincial Mining tax | USD / oz | 1,177 / oz |
AISC excluding Ontario Provincial Mining tax | USD / oz | 1,133 / oz |
Project NPV (Pre-Tax) | USD M | 333.15 |
Project NPV (Post Tax) | USD M | 231.28 |
Project IRR (Pre-Tax) | % | 87.4% |
Project IRR (Post Tax) | % | 66.7% |
Project Break-Even Gold Price | USD / oz | 1,289 / oz |
Breakeven Au Price at 30% IRR | USD / oz | 1,433 / oz |
Project Payback Period from Construction Start | Years | 2.25 Yr(s) |
Maximum Project Drawdown | USD M | 87.37 |
A sensitivity analysis for pre-tax and post-tax considerations is illustrated graphically Figure 2 and tabulated in Table 5.
Base Case - Post Tax | |||||||||
Gold Price | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% |
NPV | -111.02 | -15.30 | 74.09 | 154.20 | 231.28 | 306.92 | 382.03 | 457.12 | 532.33 |
Ave. Gold Price (US $/oz) | 1080 | 1260 | 1,440 | 1,620 | 1,980 | 2,160 | 2,340 | 2,520 | |
Plant Opex | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% |
NPV | 302.36 | 284.73 | 267.02 | 249.18 | 231.28 | 213.26 | 195.02 | 176.61 | 157.90 |
Mining Opex | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% |
NPV | 346.64 | 318.00 | 289.29 | 260.44 | 231.28 | 201.71 | 171.52 | 140.33 | 108.78 |
Overall Opex | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% |
NPV | 418.15 | 371.53 | 325.05 | 278.45 | 231.28 | 183.07 | 132.93 | 81.71 | 23.27 |
Capex | -40% | -30% | -20% | -10% | 0% | 10% | 20% | 30% | 40% |
NPV | 256.65 | 250.33 | 244.00 | 237.66 | 231.28 | 224.89 | 218.45 | 212.01 | 205.54 |
Discount Rate (Real) | -4% | -3% | -2% | -1% | 0% | 1% | 2% | 3% | 4% |
NPV | 300.55 | 280.95 | 262.98 | 246.47 | 231.28 | 217.28 | 204.34 | 192.37 | 181.28 |
Road access to the Junior Lake property from
Landore mineral holdings in the
Landore has access to all of the mining and surface rights for those leases and patented claims over an area encompassing the BAM Gold Deposit, the Lamaune Gold Prospect, the B4-7/Alpha Zone Ni–Cu–Co– PGE Deposit, and the VW Ni Deposit. For the BAM Gold Deposit, B4-7/Alpha Zone Deposit (CLM leases), and VW Deposit, the leases are granted for 21 years up to
Within the mining leases, Landore has the rights to:
- Sink shafts and carry out excavations, etc., for mining purposes
- Construct dams, reservoirs, railways etc., as needed
- Erect buildings, machinery, furnaces, etc., as required
- Treat ores
These activities may be subject to provisions of certain Acts and reservations.
Geological mapping and exploration in the vicinity of the Junior Lake property is recorded as early as 1917. In 1968,
Landore optioned part of the property from
Geology
A highly prospective Archean greenstone belt traverses the Junior
Mineralization
Mineralized structures appear to strike approximately parallel to lithologies, averaging at 280° strike and steeply dipping to the south between -65° to -80°. Gold mineralization remains open along strike to the east and west, and down dip.
The gold mineralization is interpreted to reside within a series of tabular shaped zones that are oriented in a roughly en-echelon configuration and are generally parallel to the overall strike of the host rock units. The gold mineralization occurs as a fine dissemination and also is commonly observed in drill core to exist as visible gold that is hosted by very thin, foliation-parallel quartz-rich veinlets, hosted by highly fissile ultramafic sediments of the BAM Sequence, or by foliated rocks of the Grassy
Exploration activities during 2019 included the following:
- Gridding - A large grid was cut on the Junior Lake property during the summer of 2019 and used for multiple exploration surveys (Felix Lake Grid). The grid roughly spanned 5 km x 1.2 km and was used as the basis for both soil sampling programs and ground geophysics in 2019.
- Soil Geochemistry – The results of the soil sampling programs in 2019 and 2020 indicated a possible linking of gold anomaly trends over several hundred metres strike length.
- The 2019 soil sampling program over the Felix Lake Grid and Junior
Lake Grid collected a total of 1141 samples (1,036 primary samples plus 105 reference samples). The samples were collected from the B–horizon at a nominal distance of 25 m along the grid lines using a hand–held Dutch auger. The 2019 soil sampling results indicate prospectivity of the BAM gold mineralization trend extending a further 1.5 km to the west. Further soil sampling is planned for 2020, along with drilling planned to test the potential for extensions of the BAM gold mineralization. - The 2020 soil sampling program collected a further 1013 samples including 121 reference samples from the Felix and Junior Lake grids. The combined 2019/2020 geochemistry surveys have identified more exploration targets prospective for potential significant gold mineralization to the east and west of the currently defined BAM Gold Deposit. Numerous anomalous gold trends were noted, of which four priority areas are:
- Continuation of the BAM Gold trend an additional 1.5 km to the west of which follow up drilling along a portion has had encouraging results.
- Anomalous gold values associated with iron formation between
Juno Lake andBoras Lake that are open to the west, towards the known Lamaune Gold occurrence. - Anomalous gold values continuing west towards
Juno Lake along the projected metasedimentary sequence of the BAM gold and the possibility of a southwest splay from this trend passing just south ofJuno Lake . - The gold trend east of the BAM Gold Deposit has been extended for a further 2 km. Gold anomalies continue eastward beyond the surveyed grid.
- Further soil sampling programs were recommended to cover the width of the property. The soil sampling programs have provided an effective low cost tool for gold exploration and potentially other economic minerals
- Ground Geophysics –Electromagnetic (
Horizontal Loop (HLEM) & Very Low Frequency (VLF)) and Magnetic (Mag) ground surveys were conducted inJune 2019 , on the Junior Lake property. The EM-VLF and Mag surveys covered 15.85 km of local grid lines. The HLEM-MaxMin survey covered 14.2 km of lines. The results of the geophysical survey on both the Felix Lake Grid and JuniorLake Grid areas indicated a number of significant anomalies. Eight (8) MaxMin anomalies were identified and are located from less than 5 m and up to 40 m depth. Two of these anomalies coincide at least partly with high magnetic anomalies (MM-21 and MM-22). Two (2) anomalies coincide with weak magnetic anomalies (MM-24 and MM-27), one anomaly (MM-28) with low magnetism, and four anomalies have variable magnetic features. Several of the anomalies have been proposed for drilling. - From 2015 to 2019, Landore completed several diamond drilling campaigns at the
BAM Gold Project . In 2019, Landore completed a drill programme consisting of 38 HQ diamond drill holes (0419-687 to 0419-724) for 5,946 m. The aim of this programme was to extend the existing BAM Gold Resource to the west (14 HQ holes) and infill to nominal 50 mE x 25 mN spacing within the BAM pit design areas (24 HQ holes). - BAM Drilling programs conducted in 2020-2021 consisting of 102 HQ size drill holes (0420–725 to 0421–826), for 24,361 metres, have confirmed the continuity of the gold mineralisation at depth within the main BAM mineralisation zone and also upgraded the mineralisation within the hanging wall GPS unit. The new drilling results have allowed for conversion of Mineral Resources from Inferred to Indicated, and also demonstrated the continuation of the main BAM mineralisation to the west to local grid line 200W. The drilling has continued to show the close association between gold mineralisation and the VTEM geophysical anomaly trend. The BAM gold mineralisation trend has now been confirmed by diamond drilling over a strike length 4.5 km, extending from the local grid line 200W and passed line 4100E. Drill testing has confirmed gold mineralisation within the main BAM zone extends from below the glacial till overburden (~10m average depth) surface to a maximum vertical depth of approximately 380m.
Landore provided Cube with data files including drilling databases, quality assurance/quality control (QAQC), topographic survey files, PDF files containing hand drawn cross section interpretations of the mineralized domains and geological boundaries, and surface topography in DXF file format covering the entire
Cube has previously completed a site visit to the Project and data storage facilities at the Junior Lake camp and
Collar, survey, assay, geology, and other relevant drilling data in .ASC and MS Excel file formats were provided to Cube up to
The data validation prior to resource estimation included checks for duplicate surveys, downhole survey errors, assays, and geological intervals beyond drill hole total depths, overlapping intervals, and gaps between intervals. Data was validated utilizing visual review of digital and paper files, as well as computer-aided checking systems. Site visit validation included review of recent core samples and interrogation of digital and paper data, including paper plans and sections, assay records, downhole survey records, hardcopy geology logs and data storage systems of hardcopy data. Other data verification included database searches, certificate validation, and quality assurance/quality control review of assay results.
Verification of supplied electronic drill hole data with drill hole logs and assay certificates was completed. The primary returned assay result was used for reporting of all intersections in the MRE. No averaging with field duplicates or laboratory repeats was undertaken so as not to introduce volume bias.
Cube considers the drilling database to be appropriate for the
- A total of 251 diamond drill holes for approximately 45,686 m have been completed with the
BAM Gold Project area, with a total of 207 holes used in the current MRE (37,540 m). - The data used for the resource estimation is informed by good quality drilling on regular drill spacing – down to 50 mE x 25 mN for the central areas of the project, stepping out to a nominal 100mE x 50 mN to the east and west of the main mineralisation. Maximum extrapolation of wireframes from drilling was 25 m to 50 m along strike and 50 m down-dip.
- Geological and mineralisation interpretations in plan and cross sections were provided by LND and used to assist with updating 3D wireframe models of the gold mineralisation envelopes based on analysis of all the recent information collated. A total of 25 mineralized domains were modelled for the
January 2022 MRE. - Assessment of the raw assay interval lengths and raw gold assay values were completed in order to determine the most appropriate length for compositing of the samples. The most common sample length is 1.0 m and covers the range of the Au grades. Therefore, 1 m composes were used as the source data for the gold grade estimates.
- Gold grade distributions within the estimation domains were assessed to determine if high grade cuts or distance limiting should be applied. The effects of grade capping were reviewed and applied on a domain basis where it was deemed appropriate). The range of cut off values varied from 10g/t Au to 25g/t Au.
- Variogram modelling conducted on estimation domains with sufficient data to provide parameters for OK estimation method – nugget, sill and range for 3 directions.
- Kriging Neighbourhood Analysis (KNA) was used to assist with assessing the most appropriate block sizes and other estimation parameters such as minimum and maximum samples, discretization, to be used for the estimation.
- Parent block size of 25mE x 5mN x 25mRL in the X, Y, Z directions respectively was used, and they were sub-blocked to 6.25m x 1.25m x 6.25m. This was deemed to be appropriate for block estimation and modelling the selectivity for a likely open pit operation.
- Ordinary Kriging ("OK") estimation method was used to estimate gold into the 3D block model using spatial data analysis parameters informed from the variogram and KNA analyses.
- Au estimated in 2 passes – 1st pass using optimum search distances for each domain (max 120m) as determined through the KNA process, with a 2nd pass set at longer distances in order to populate all blocks (2nd = max >360m).
- Local variations in domain orientations were managed by applying a dynamic anisotropy search in which the search neighbourhood ellipse dip and dip direction are defined separately for each block approximating the orientation of the estimation domain where appropriate.
- Blocks have been classified as Indicated Mineral Resources or Inferred Mineral Resources. The resource classification is based on the quality of information for the geological domaining, well established continuity of the gold mineralisation, as well as the drill spacing and geostatistical measures to provide confidence in the tonnage and grade estimates.
- The estimation domaining, MRE parameters, classification and block model report replication have all been internally peer reviewed by qualified professionals at Cube.
With the addition of the 2020-2021 drilling, the new data has resulted in a 47% increase in Indicated and Inferred Resource (in-situ contained metal) above a cut-off of 0.3g/t Au compared with the MRE reported in 2019.
Given the shallow nature of the mineralization and the initial metallurgical test results, material could be extracted by means of open pit mining methods and processed using conventional milling techniques.
3DM modelling and block construction were created with the aim of preparing a suitable model for open pit mine design and pit optimisation, with a minimum mining width of 2 m. Internal dilution has been considered by re-blocking the resource block model, with a maximum downhole width of 3 m (2.5 m true width) of sub-grade material (<0.3 g/t Au).
Open pit optimisation and mine scheduling work has been carried out by Cube for the
A series of metallurgical test programs have been carried out on samples from the BAM Gold Deposit. ALS Metallurgy Americas was engaged by Landore in
Landore completed additional metallurgical testing on the
Landore has conducted various environmental baseline studies on the Junior Lake property since 2007. Surface water sampling of various lakes and streams has been conducted since 2007.
Beginning in 2007, Landore retained
Bathymetry and fish habitat studies of
Terrestrial and fish habitat studies were conducted by Golder over the property during 2008 and subsequently reported in an environmental baseline study in 2009. Results of the vegetation surveys, wildlife surveys, and incidental observations did not identify any listed species within the site boundary that would trigger a specialized study. The site has been highly disturbed in some locations by recent commercial forestry activity.
Landore maintains a sound working relationship with First Nations on whose traditional lands the Junior Lake property is situated. In 2007, Landore signed a Memorandum of Understanding (MOU) with Whitesand and Animbiigoo Zaagi'igan Anishinaabek (AZA) First Nations. This agreement formalizes the desire and commitment to develop a positive, mutually beneficial relationship amongst all parties and establishes the process by which this is to be accomplished while Landore is conducting exploration and advanced exploration activities in the area.
The MOU was later revised to reflect significant changes in Landore's claim holdings in the Junior Lake area. Whitesand signed the revised MOU on
More recently, in
The Project has involved a range of stakeholders. These stakeholders have included those that hold a direct interest in the development of the Project, Federal and Provincial government agencies, community and municipal organizations, First Nation representatives, and other similar groups. The range of stakeholders is expected to grow with the development of the Project, particularly within the local community.
The
Data Quality
The input drill data is comprehensive in its coverage of the gold mineralization at
In Cube's opinion, the drilling, logging, and sampling procedures at the
The typical drilling data spacing (50 m x 50 m) is adequate to determine the geological and grade continuity for reporting of Mineral Resources and Mineral Reserves.
Interpretation and 3D Modelling
The BAM Gold Deposit is made up predominantly of broad to narrow, very continuous mineralized gold zones hosted within a volcano-sedimentary sequence The confidence in the geological interpretation of the
Estimation and Model Validation
Ordinary Kriging (OK) estimation method is considered an appropriate method to estimate gold into the 3D block model for the
It is Cube's opinion that the OK gold estimates are valid and satisfactorily represent the informing data for the
Classification
The
- Geological continuity and volume
- Drill spacing and drill data quality
- Modelling technique
- Estimation properties
- Risk or uncertainty present in the estimated grades
The classification of the
Mining and Metallurgical Considerations and Assumptions
Given the shallow nature of the mineralization and the initial metallurgical test results, material could be extracted by means of open pit mining methods and processed using conventional milling techniques.
The base input parameters used in the open pit optimization completed by Cube are based on information collated after discussions with Landore and review of economic analyses in PEA reports from similar projects in
The open pit optimization study undertaken by Cube has yielded two distinct areas, an east pit shells (
Metallurgical Studies
The recent metallurgical test work conducted has determined the following:
- The BAM composite was amenable to gravity concentration of the liberated gold with 65% or greater of the contained gold recoverable in the gravity concentrate.
- Cyanide consumption was low.
- Cyanide leaching of the gravity tail increased the overall extraction of gold to ±98%. The 98% recovery has been applied to the pit optimisation studies for the 2022 MRE.
PEA Study
For the 2022 economic analysis study, a base case scenario considers the economics of exploiting a resource of 22.4 Mt at 1.16 g/t containing 833 koz Au. Metallurgical recoveries of 98% are envisaged to yield 816 koz. The 2022 base case correlates with the 2018 PEA report extended case (Cube, 2019) which estimated to yield of 760 koz recovered. The subsequent infill and step out drilling carried out by Landore has therefore met the expectations of the 2018 extended case scenario.
Future Exploration Potential
Based on exploration work completed by Landore up to
Cube concurs with the Landore opinion there is significant potential to expand the limits of the
The current 3D model interpretation of the extents the BAM gold mineralization remains open along strike, both to the east and west, and future drilling should target the eastern extension of the BAM Sequence. The BAM gold mineralization remains open down dip, providing additional open pit and possible underground targets for future drill programs.
The infill and step out drilling conducted for the 2020-2021 drilling programmes further confirmed the correlation of an IP anomaly from geophysics conducted in 2004 with the main BAM gold mineralisation trend to the west passed local grid line 200W toward the Lamaune Gold Prospect, which contains anomalous gold mineralisation requiring further drill testing.
Future drill testing recommendations to target gold mineralisation still open along strike and down dip and further targets identified and based on the following data are listed as follows:
- To the east past the local grid line 4100E, further exploration and drill testing is planned to test the relationship between the BAM mineralisation and other anomalies associated with the B4-7 Deposit.
- Highly prospective soil geochemistry results based on recent geochemical sampling.
- IP anomaly targets have been identified by LND previously in 2004 and related to FW massive to disseminated sulphides zones adjacent to the main BAM Au mineralized units. In addition, there are 3 to 4 WNW trending anomalies that are possible targets for exploration drilling (northern anomalies), and step-out drilling along strike from the BAM sequence
- Regional Prospectivity – other gold mineralisation targets along the 31km strike length of the Junior
Lake Shear (Lamaune Prospect), B4-7 Deposit and a historical discovery atToronto Lake .
Cube concurs with Landore's proposed exploration and drilling work program on the
End of the Executive Report of the CUBE Technical Report and Preliminary Economic Assessment
Planning:
Exploration activities are planned to re-commence at Junior Lake in
Drilling will re-commence in early
The Junior
The Junior
Glossary of Key Terms
"assay" | the chemical analysis of rock or ore samples to determine the proportions of metals |
"Au" | chemical symbol for gold |
"diamond drilling" | drilling method which obtains a cylindrical core of rock by drilling with an annular bit impregnated with diamonds |
"drill core" | The cylindrical rock samples obtained by means of annular-shaped rock-cutting bits rotated by a borehole-drilling machines |
"g/t" | grams per tonne, equivalent to parts per million |
"grade" | relative quantity or the percentage of ore mineral or metal content in an ore body |
"greenstone" | green, chlorite rich, generally metavolcanic rocks resulting from low temperature and pressure metamorphism |
"indicated resource" | that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed |
"inferred resource" | that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability |
"IP" | an electromagnetic geophysical method that uses electrodes with time-varying currents and voltages to map the variation of electrical permittivity (dielectric constant) in the earth at low frequencies |
"Kriging" | a method of interpolation which predicts unknown values from data observed at known locations. It uses the variogram to express spatial variation, and minimizes the error of predicted values that are estimated by spatial distribution of the predicted values |
"mineral resource" | a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such form that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing confidence, into Inferred and Indicated categories |
"mineralization" | process of formation and concentration of elements and their chemical compounds within a mass or body of rock |
"NI 43-101" | the reporting standard adopted for the reporting of the Mineral Resources is that defined by the terms and definitions given in the terminology, definitions and guidelines given in the |
"reserve" | the economically mineable part of a Measured and/or Indicated Mineral Resource |
"SMU" | selective mining unit-sized blocks |
"strike length" | the longest horizontal dimension of an orebody or zone of mineralization |
"strike" | The direction, or bearing from true north, of a vein or rock formation measure on a horizontal surface |
"veinlets" | a deposit of non-sedimentary origin, which may or may not contain valuable minerals |
SOURCE
© Canada Newswire, source