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 Lamaune Iron deposit, the Lamaune Gold prospect, the VW Nickel deposit, the B4-7 Nickel-Copper deposit, and numerous other highly prospective mineral occurrences.
Land acquisition
Landore has staked an additional 17 mining claim blocks, for 3,383 hectares, to the east-northeast of the Lamaune area. The new area, north of Summit Lake and contiguous with the greater Junior Lake property, is host to a historic iron deposit delineated by a total of 15 drill holes for 1,738 metres.
Landore intends to conduct a helicopter-borne high resolution ‘Impulse’ geophysical survey over the Summit Lake anomaly and other potential areas in close proximity, after which three to four drill fences will be drilled along the anomaly to provide an estimate of the potential size and quality. This work is scheduled for completion in Q3 2011.
With the above acquisition, the Junior Lake property now extends for over 38 kilometres and covers an area of 35,699 hectares.
Junior Lake property
Infrastructure
The city of Thunder Bay is located on the northern shore of Lake Superior and is the main supply hub for the mining centres of northern Ontario including Red Lake, Pickle Lake, and the Musselwhite gold mine. It has extensive port facilities and an airport providing daily flights to major provincial cities, as well as a rail line that provides access to both eastern and western North American markets.
Access to Junior Lake from Thunder Bay is via a sealed highway for 235 kilometres to the town of Armstrong and then via a well maintained forest products unsealed road for 100 kilometres that runs to the property.
The Canadian National Railway runs parallel to the Junior Lake property 13 kilometres to the south providing direct transport access to both the nickel smelting centre of Sudbury and the port facilities at Thunder Bay. In addition, Junior Lake has abundant water resources nearby and is just 10 kilometres from the planned hydro-electric power station on the Little Jackfish River with the connecting and main transmission lines passing through the property.
Lamaune Iron deposit
In October 2008, Landore reported that exploration including geophysical surveys, trenching and drilling, had identified the presence of a large magnetite iron deposit at the western end of the Junior Lake property.
Further exploration works during 2009, including a helicopter-borne high resolution ‘Impulse’ geophysical survey over 12 kilometres of potential strike, together with additional drilling and trenching, indicated that the deposit could be of economic significance. Accordingly, Landore initiated independent studies to provide an estimate of the potential size and quality of the Lamaune Iron deposit.
Potential size
In February 2010, an independent study was completed for Landore in order to determine the size of the exploration target of its Lamaune Iron prospect. The study was completed using advanced geophysical modelling of the high resolution, high quality geophysical data set acquired in 2009, measurements of core sample magnetism, field work and assay results. This work has
| identified an exploration target of: | ||
|---|---|---|
| To 400 metres depth: | ||
| Cut-off | Cumulative | Average grade Fe |
| percentage | tonnes | percentage |
| 15 | 635,313,686 | 25.7 |
| 20 | 371,435,320 | 31.9 |
| 25 | 254,519,350 | 36.6 |
| 30 | 245,519,350 | 36.6 |
The potential quantity and grade expressed above is conceptual in nature and in order to define a mineral resource further drilling is required.
Test work
A test work programme has been carried out to determine the physical and chemical characteristics of the magnetite ore samples supplied from the central zone of the ore body. Ten composite samples, selected from drill holes spaced along the central 3.5 kilometre zone, were submitted for ‘Davis Tube Recovery’ (DTR) tests. The test determines the recovery and grade of the magnetic product that can be obtained through grinding and magnetic separation only.
The average grade of the submitted composite samples was 32.19 per cent. Fe. The average grade of the DTR tests results was 65.5 per cent. Fe with a weight to concentrate averaging 25.2 per cent.
Preliminary flotation tests have indicated success at reducing silica in the concentrate to acceptable levels and improving iron recoveries. The magnetic separation/flotation circuit is common in the iron mines of Minnesota and Northern Michigan. The flotation tests show that a 68 per cent. Fe, 4.5 per cent. SiO2, 0.3 per cent. S grade concentrate, at a 72 per cent. product weight recovery and 83 per cent. Fe yield could be achieved.
An estimated feed tonnage of 11.6 Mtpa would be required to produce 2.5 Mtpa of iron pellets. Further flotation test work will be required to optimise this circuit but the initial test work yielded positive results and it is expected that a combined sulphur and silica flotation circuit will produce the final product grade at acceptable yields.
The iron formation outcrops at surface along the central 3.5 kilometre zone providing for a low stripping ratio of ore to waste with associated low mining costs.
Lamaune Iron deposit
Marketing and transportation study
In October 2010, Landore completed its marketing and transportation study for Lamaune Iron and concluded that a potential market exists for iron pellets or iron nuggets in North America and that transportation of product to these markets, especially in southern Ontario, would be by direct rail.
The market for the Lamaune Iron pellets are the 23 integrated steel mills in North America with a combined capacity of 69 million tons of annual steel production. These steel mills are predominantly located around the Great Lakes and managed by six corporations.
The encouraging results from exploration works, marketing and transportation study, and independent studies completed to date show that the Lamaune Iron deposit has the potential to be economically viable.
Lake Superior rail network
Planned
Landore intends to carry out a 30,000 metre in-fill drilling campaign on the 4.5 kilometre central section of the Lamaune Iron deposit to advance that section to a resource compliant with Canadian National Instrument 43-101 (NI 43-101), after which independent engineers will be engaged to commence actively marketing Lamaune Iron.
In addition, a geophysical survey (helicopter airborne ‘Aerotem’) over the newly acquired Summit Lake Iron deposit will be completed during Q3 2011.
Lamaune Gold prospect
In late 2008, a gold discovery was made on the Junior Lake property in the vicinity of the Lamaune Iron deposit.
A drill campaign, consisting of 75 drill holes for a total of 11,644 metres, was completed on Lamaune Gold in 2009/2010. Drilling intersected narrow vein high grade gold and wide zones of lower grade mineralisation.
The southern broad zone of gold mineralisation, frequently outcropping at surface, has so far been intersected over 500 metres of strike extent and has been drilled to a depth of 200 metres. The zone remains open at depth and to the east along strike.
Potential size
In Q3 2010, an independent geological consultant was contracted by Landore to review and prepare a three-dimensional model and conceptual mineral resource inventory for the Lamaune Gold prospect, based on the drilling data to date. This conceptual model defined an initial exploration target of 1,350,000 to 1,650,000 tonnes of mineralised material containing between forty to fifty thousand ounces of gold (oz-Au) at a cut-off grade of 0.3 grams per tonne (g/t).
The conceptual mineral resource inventory indicates that the Lamaune Gold prospect is a viable exploration target. Its proximity to the Lamaune Iron deposit has the distinct advantage that almost every drill hole intersects both deposits with resultant economic savings. Should they be advanced to development stage these savings will continue with the mining of both deposits simultaneously.
Landore has completed preliminary metallurgical testing of representative samples from the Lamaune Gold prospect which indicates that gold recovery from pulp material (-0.075mm) is 94.4 per cent. Petrographic analysis shows the gold to be “free gold” in the matrix of garnetiferous amphibolite. Metallurgical testing to date indicates the amenability of the low grade gold mineralisation to heap leaching and the high grade to gravity separation. Both are simple and low capital cost extraction methods and could be advanced to production in a relatively short time period.
Planned
Landore intends to carry out extension drilling on the Lamaune Gold prospect, in conjunction with infill drilling on the Lamaune Iron deposit, commencing in Q4 2011.
Junior Lake Nickel deposits
Landore is exploring the VW and B4-7 deposits with the ultimate aim of developing their reserves in parallel, subject to favourable mining economic studies.
VW Nickel deposit
The VW Nickel deposit (VW deposit), discovered by Landore in late 2005, is located at Ketchikan Lake in the central part of the Junior Lake property and is Landore’s most advanced project. From 2005 to 2010, Landore has drilled 142 diamond NQ size holes for 35,339 metres on the VW deposit.
VW Nickel deposit – Katrina zone
In October 2009, a technical report on the resource estimate upgrade on the VW deposit was completed. The report is compliant to NI 43-101.
The resource estimate, using a Cut-off grade of 0.25 per cent. nickel reported:
- Indicated – 3.73 million tonnes at 0.49 per cent. Nickel Equivalent (NiEq).
- Inferred – 0.72 million tonnes at 0.49 per cent. NiEq.
For a contained 21,760 tonnes NiEq.
84 per cent. of the resource is in the Indicated category. The resource remains open to the east and to the west as well as down dip.
Metallurgical studies completed in 2008 indicate the nickel concentrate grades and recoveries ranging from 14 per cent. Ni at 74 per cent. recovery to 10 per cent. Ni at 80 per cent. recovery are a reasonable representation of the expected plant recovery.
The VW deposit outcrops at surface with the upper 150 metres of the deposit being amenable to lower cost open pit mining. Below 150 metres, the grade improves sufficiently on the main Katrina zone for underground mining.
B4-7 Nickel -Copper -Cobalt -PGEs deposit
The B4-7 Nickel -Copper -Cobalt -PGEs deposit (B4-7 deposit), discovered by International Mogul Inc. in 1969, is located approximately 3 kilometres to the northwest of the VW deposit and is Landore’s second most advanced deposit. From 2003 to 2009, Landore has drilled 89 diamond NQ size holes for 19,794 metres on the B4-7 deposit.
The B4-7 deposit, so far delineated over 650 metres of strike, remains open to the east and west along and down plunge to the northwest. A previously completed airborne electromagnetic survey suggests the conductive horizon hosting the B4-7 deposit persists for an additional 500 metres to the west.
In February 2010, a technical report on the resource estimate upgrade on the B4-7 deposit was completed. The report is compliant to NI 43-101.
The resource estimate, using a Cut-off grade of 0.25 per cent. nickel reported:
- Indicated – 2.00 million tonnes at 1.06 per cent. Nickel Equivalent (NiEq).
- Inferred – 0.61 million tonnes at 0.87 per cent. NiEq. For a contained 26,521 tonnes NiEq. 80 per cent. of the resource is in the Indicated category. The resource remains open to the east and to the west as well as down dip.
Preliminary metallurgical studies completed in 2010 indicate the nickel concentrate grades and recoveries of 13.5 per cent. Ni at 53 per cent. recovery with 17 per cent. Cu at 87 per cent. recovery is achievable. Marketable concentrate can be achieved with further processing stages to upgrade the nickel, copper and PGM content with the rejection of pyrrhotite.
The B4-7 deposit also outcrops at surface with the upper 150 metres of the deposit being amenable to lower cost open pit mining. Below 150 metres, the grade improves sufficiently for underground mining.
As a result of the above resource estimates, the combined resources of the VW and B4-7 deposits now stand at 48,281 tonnes of NiEq, 82 per cent. of which is in the Indicated category.
Exploration
Preliminary economic assessment work on the Junior Lake VW and B4-7 Nickel deposits indicate that additional tonnage of NiEq would be required to justify the construction of a stand-alone processing plant.
Accordingly, an extensive exploration programme was conducted during the summer of 2010 and the winter of 2010/11 to delineate potential extensions of the VW and B4-7 nickel deposits, to follow up on previously discovered zones of interest for gold and base metal mineralisation, as well as to identify prospective areas for nickel, lithium, and gold in other areas on the Junior Lake property. Exploration activities included field reconnaissance, geological mapping, trenching and sampling, as well as drilling.
VW-B4-7 trend
An exploration diamond drilling campaign consisting of 17 drill holes, for 3,663 metres, commenced in Q4 2010 to investigate the nickel potential west of the VW deposit to the B4-7 deposit. Drilling focused on an east-west trending geophysical anomaly extending between the two deposits, potentially related to the nickel-bearing geophysical anomalies of the VW and B4-7.
Drilling to-date has revealed several anomalous nickel intersections, including 3 metres at 0.23 per cent. Ni from drill hole 0411-294, and 2.5 metres at 0.39 per cent. Ni from drill hole 0411-288. Anomalous gold values were intersected as well, including 1.25 metres at 1.37 g/t gold from drill hole 0410-285, and 1.5 metres at 0.65 per cent. Cu and 0.22 g/t gold from drill-hole 0411-292. Further follow up drilling is warranted.
Drilling on the B4-8
B4-8 zone
An exploration drilling campaign consisting of six diamond drill holes, for 1,347 metres, was carried out during Q1 2011 on the B4-8 geophysical conductor, in the vicinity and west of the B4-7 Nickel-Copper deposit. Highlights include 1 metre at 0.19 per cent. Ni, 0.52 per cent. Cu and 0.54 per cent. Zn from 0411-298, as well as 5.58 metres at 0.59 per cent. Ni and
0.29 per cent. Cu from 0411-301. Assay results for the remaining drill holes are pending. Preliminary findings are very prospective.
Swole Lake prospect
Historical work, together with mapping and sampling conducted by Landore in 2009 and 2010, identified the potential for lithium-bearing pegmatite and economic grades of nickel in the Swole Lake area, 4.8 kilometres north of the B4-7 Nickel-Copper deposit.
An exploration drilling campaign consisting of 10 drill holes, for 1,441 metres, was conducted during Q1 2011 to test for lithium-bearing pegmatite and nickel mineralisation hosted in adjacent mafic-ultramafic rocks. Assay results are pending.
Swole Lake Pegmatite intercept
Grassy Pond zone
An exploration campaign consisting of field reconnaissance, trenching and sampling was conducted during Q3 2010. Encouraging results from these activities prompted a drill campaign of 19 drill holes, for 2,765 metres, conducted during Q4 2010. The drilling targeted prospective geophysical conductors in the area. Highlights of the Fall 2010 drilling campaign include
1.5 metres at 0.74g/t Au from 0410-263, 1 metre at 1.56g/t Au from 0410-268, and 5.9 metres at 0.5 per cent. Cu from 0410-271. Further exploration eastward towards the B4-7 Nickel-Copper deposit is warranted.
Carrot Top zone
Six diamond drill holes and one drill hole extension, for 1,101 metres, were drilled on the Carrot Top zone to further investigate the high grade nickel intersected in the 2008 exploration drilling. Multiple narrow (<2 metre) zones of elevated nickel were intersected, including 0.88 metres at
0.47 per cent. Ni from drill-hole 1110-104, and 4.53 metres at 0.22 per cent. Ni and 0.19 per cent. Cu from drill hole 1110-102. In addition, 1.5 metres at 0.42 g/t Au was intersected in drill hole 1110-103. These findings further indicate the potential this area holds for economic mineralisation.
Toronto Lake area
Field reconnaissance, mapping and sampling were carried out to the east of the VW deposit in the Toronto Lake area. Grab sampling yielded several >1g/t Au values, the most promising of which being 71.69 g/t Au from a grab sample originating from a historical blast pit.
Encouraged by these results, Landore completed a trenching programme over the southern flank of Toronto Lake during Q3 2010. This programme, comprised of 18 trenches, extended over two sub-parallel zones of anomalous gold mineralisation less than 100 metres apart, with the northern zone being traced over a strike length of 600 metres. Several sawn channel samples from the zone graded over 1 g/t Au. Further exploration, including diamond drilling, is warranted to follow up on these encouraging results.
Tape Lake area
A field reconnaissance and sampling programme was conducted in the Tape Lake area, north of the Lamaune Iron and Gold deposits, during Q3 2010. Two granitic pegmatite dykes were located; grab samples taken from one of the pegmatite dykes returned values of 1.22 and 2.37 per cent. Lithium Oxide (Li2O), respectively. Further exploration work in this area is warranted to follow up on these encouraging Li2O results.
Planned
Results from the extensive exploration campaign completed during the past year have been highly successful. Drilling will re-commence on the B4-8 zone and the Swole Lake prospect in mid May 2011 to follow up on the encouraging results.
Toronto Lake channel samples
Environmental Baseline Studies
Golder Associates of Sudbury, Ontario, have continued with the Environmental Baseline Studies programme initiated on the mining leases containing the VW and B4-7 deposits in the winter of 2007.
Water surface monitoring of lakes and drainage tributaries within the vicinity of the deposits have continued on a bi-annual basis during 2010 and 2011. The area of influence has recently been expanded to include lakes and drainage further out from the leases, including the Lamaune Iron area. The environmental and baseline studies are all pre-requisite for permitting requirements for the development of the VW, B4-7 and Lamaune Iron deposits.
Mining leases
A pre-requisite for the development of the VW and the B4-7 deposits is to secure tenure over an area of land sufficiently large to provide for development, mining, processing, infrastructure and buffer zones around the mining areas and for future expansion.
Landore has been granted three mining leases, which include mining and surface rights, over an area encompassing the VW and the B4-7 deposits. The leases cover 23 existing exploration claims (claims) for a total area of 3,676 hectares and have been granted for 21 years renewable for further terms of 21 years.
Within the Mining Leases Landore has the right, subject to provisions of certain Acts and reservations, to:
- Sink shafts, excavations etc., for mining purposes.
- Construct dams, reservoirs, railways etc., as needed.
- Erect buildings, machinery, furnaces, etc. as required and to treat ores.
Landore is currently engaged in the necessary work requirements to bring the Lamaune Iron deposit claims to mining lease status in preparation for future development.
Related Press Releases:
For further information and drilling results please consult the following press releases:
10-08-2011 - Junior Lake B4-8 Zone Drilling Update
14-06-2011 - Technical Report on the Lamaune Iron Project
14-06-2011 - Valuation Report on the Lamaune Iron Project
10-05-2011 - Junior Lake Drilling Update
30-11-2010 - Summit Lake Iron Deposit Progress Report
05-10-2010 - Lamaune Gold Deposit Progress Report
04-05-2010 - Junior Lake-Lamaune Gold Prospect Drilling Update
15-03-2010 - Junior Lake-Lamaune Iron Deposit Progress Report
09-03-2010 - Progress Report
03-12-2009 - Junior Lake Gold Discovery
18-08-2009 - Junior Lake Drilling Update
03-08-2009 - Junior Lake Drilling Update
17-06-2009 - Junior Lake Drilling Update - B4-7 Deposit
27-05-2009 - Junior Lake Drilling Update - B4-7 Deposit
18-11-2008 - Junior Lake Property Mining Leases Granted; New Claims
27-10-2008 - Junior Lake Property Iron Ore Deposit
06-10-2008 - Junior Lake-Lamaune Lake Property Consolidation
30-09-2008 - Junior Lake Progress Report
14-05-2008 - Junior Lake B4-7 Deposit Resource Statement
26-03-2008 - Junior Lake Resource Upgrade Statement
08-01-2008 - Junior Lake Drilling Results and Progress Report
29-11-2007 - Junior Lake Drilling Results and Progress Report
03-10-2007 - Junior Lake Progress Report
31-07-2007 - Junior Lake Progress Report
11-07-2007 - Junior Lake Progress Report
05-06-2007 - Junior Lake Drilling Update
01-05-2007 - Junior Lake Progress Report
13-11-2006 - Junior Lake Progress Report
12-09-2006 - Junior Lake: Second Interim Drilling Report - VW Zone
22-06-2006 - Junior Lake: Interim Drilling Report - VW Zone
09-05-2006 - Progress Report - Junior Lake
07-02-2006 - Progress Report