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. The property is host to two Canadian National Instrument (NI) 43-101 compliant Nickel deposits, the B4-7 Nickel-Copper deposit and the VW Nickel deposit, for a combined 48,281 tonnes of nickel equivalent (NiEq), 82% of which is in the Indicated category. The Junior Lake property extends for 31 kilometres and covers an area of 31,603 hectares.
The Scorpion Zone is a distinctive geophysical magnetic anomaly located approximately 3 kilometres to the northwest of the VW deposit and is host to the B4-7 deposit together with the B4-8 prospect. The zone extends 500 metres to the east of the 00 base line of the B4-7 deposit and extends 1,000 metres to the west of 00. There, it is truncated by the Juno Lake shear, and curls north and then to the east around a prominent 150 metre diameter magnetic low.
Exploration drilling has established that this zone hosts a collective potential massive sulphide mineralisation strike length of 1.5 kilometres.
A deep penetrating ‘Direct Current Induced Polarization’ (DCIP) and Magnetotellurics (MT) survey has been completed on the Scorpion Zone (fall 2012). Results of the DC Resistivity section of the survey received to date are highly promising indicating the potential extension of the B4-7 mineralisation to line 800W.
The B4-7 deposit is located in the centre of Junior Lake's mining lease area, approximately 3 kilometres to the northwest of the VW deposit. The B4-7 deposit mineralisation is hosted within a sub-vertical massive sulphide vein with stringers, net-textured and disseminated sulphides in the immediate hanging wall. The B4-7 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 for underground mining.
The deposit has now been delineated over 800 metres of strike length with the B4-7 massive suphide mineralisation remaining open to the west along strike and down dip.
An upgraded resource estimate for the B4-7 Deposit has been recently completed. The combined open pit and underground resource has been increased to 2,695,000 tonnes at 1.24% Nickel equivalent (NiEq) for 33,248 tonnes of contained metal, all in the Indicated Category.
An Exploration Target has been identified along strike and down dip from the above resource containing a potential 1.5 Mt to 2.0 Mt of sulphide mineralisation of similar grade range to that which has been outlined to-date.
During 2012, infill and extension drilling was conducted on the eastern and western portion of the B4-7 deposit aimed at enlarging and bringing Inferred portions of the deposit to Indicated resource category. A total of 96 NQ size diamond core drill holes from 0412-367 to 0412-362 and 5 re-entry drill holes, for 22,827 metres, were completed. The program was highly successful, the results of which are reflected in the current resource estimate.
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 B4-8 prospect is situated directly west of the B4-7 Nickel-Copper-Cobalt-PGEs deposit within the Scorpion zone. Drilling in 2011/2012 discovered elevated nickel-copper intercepts on the B4-8 prospect potentially extending the B4-7 massive sulphide mineralization a further 800 metres to the west.
2012 drill-hole 0412-446, located within the B4-8 prospect, intersected B4-7 massive sulphide mineralisation with grades of > 1% nickel and > 1% copper plus significant credits of cobalt and platinum group metals.
2011 drilling on the B4-8 prospect has indicated significant copper mineralisation in the vicinity of the shear's deformation zone on the 900W line with drill-hole 0411-323 reporting 25.68 metres at 0.66% Cu including 10.01 metres at 1.17% Cu together with 0411-328 reporting 12.64 metres at 1.01% Cu. There has been a notable increase in the copper content and grade as drilling progresses to the west.
A drilling program to confirm the western extension of the B4-7 deposit mineralisation to line 900W, is currently being planned to commence in Q4 2012.
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. From 2005 to 2010, Landore has drilled 142 diamond NQ size holes for 35,339 metres on the VW deposit. 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.
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:
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 nickel at 74 per cent recovery to 10 per cent nickel at 80 per cent recovery are a reasonable representation of the expected plant recovery.
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.
Golder Associates of Sudbury, Ontario, have continued with the Environmental Baseline Studies programme initiated on the mining leases containing the B4-7 and VW 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 2011, and have been increased to a quarterly basis in 2012. The area of influence has recently been expanded to include lakes and drainage further out from the leases. The environmental and baseline studies are all pre-requisite for permitting requirements for the development of the B4-7 and VW deposits.
A pre-requisite for the development of the B4-7 and VW 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 B4-7 and VW deposits. The leases cover 23 existing exploration 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: