Landore Resources Limited
03 August 2005
LANDORE RESOURCES LIMITED
WEST GRAHAM PROPERTY
OPTION AGREEMENT
Highlights
•Landore Resources Canada Inc. ('Landore'), a fully owned subsidiary of
Landore Resources Limited, has entered into an option / joint venture
agreement with First Nickel Inc. (TSX-FNI) for that company to acquire a 70%
interest in Landore's West Graham property adjoining the east zone of the
Lockerby nickel mine near Sudbury, Ontario.
The West Graham property comprises one full patent Lot 12 in the township of
Graham for a total area of approximately 130 hectares owned outright (land and
mining rights) and is strategically located on the southern edge of the Sudbury
Intrusive Complex, only 2 kilometres east of the Lockerby nickel mine and 10
kilometres west of the Creighton mine.
The agreement provides for First Nickel to make cash payments to Landore of
$150,000 and carry out exploration and development expenditures of $6 million
over a four-year period. Should First Nickel fully exercise the option, Landore
shall decide whether it wishes to participate to the extent of its 30% working
interest in the development of the property, failing which, First Nickel shall
have the right to increase its interest to 85% by completing a bankable
feasibility study within two years thereafter. The completion of the transaction
is subject to the execution of a definitive agreement and regulatory approvals.
Extract from First Nickel's press release 3rd August
'The 130-hectare Landore property extends for approximately 1.3 kilometres into
the footwall south of the Lockerby East portion of First Nickel's Lockerby Mine
property. Given the copper-depleted nature of the known contact-style ores and
the presence of extensive Sudbury Breccia in the footwall, there is significant
potential for high grade copper-PGE deposits in the footwall to the Lockerby
East ore system.
The Landore property also contains the historic Conwest deposit. This
contact-related deposit was estimated in the 1960's to have a mineral inventory
of 4.3 million tons at 0.52% Ni and 0.33% Cu. This resource should be considered
non-compliant with National Instrument 43-101. The centre of the deposit lies at
approximately 250 metres vertical depth. Of particular interest to First Nickel
are indicated areas of much higher grade within the Conwest deposit - for
example, 2.35% Ni, 0.35% Cu over 15.5 feet in hole WG-27 and 2.32% Ni, 0.77% Cu
over 7.7 feet in hole WG-9, etc. Platinum-palladium-cobalt values are unknown.
This deposit is approximately 500 metres above First Nickel's Lockerby East
deposit, along the same ore system, suggesting that there is considerable
potential to find additional contact-related mineralization along this trend.
First Nickel plans to mount an aggressive exploration campaign on the Landore
property commencing immediately. This will include deep-penetration Induced
Polarization surveys from surface, detailed mapping of the distribution of
Sudbury Breccia on the property and a thorough review of past drilling on the
Conwest deposit to attempt to delineate areas of higher grade which may be
accessible by a ramp from surface. First Nickel is also currently laying out
plans for a major underground drilling program at Lockerby East to increase
confidence levels in the existing resource base and to explore for more
resources in the vicinity. In view of the Landore acquisition, a number of these
underground holes will be continued south to explore for footwall deposits.'
For more information please contact
Bill Humphries / Richard Prickett
Landore Resources Limited
Tel: 07734 681262
Tel: 07775 651421
Simon Raggett
Strand Partners Limited
Tel: 020 7409 3494
This information is provided by RNS
The company news service from the London Stock Exchange
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