Final Results

RNS Number : 3193E

Landore Resources Limited

29 May 2012

 



Landore Resources Limited

("Landore" or "the Group ")

 29 May 2012

Final results

for the year ended 31 December 2011

Landore Resources, the mining exploration company which is currently drilling The Junior Lake  nickel projects  in Eastern Canada, announces results for the year ended 31 December 2011.

Highlights

·     Significant progress on the continued exploration of the Junior Lake Nickel Projects - combined historic resource of in excess of 48,000 tonnes of nickel equivalent likely to be substantially  enhanced

·     Direct exploration costs of £2.9m funded by share placements totalling £3.9m

·     Demerger of the iron ore interests into a new company called Lamaune Iron Inc - potential to delineate more than 1 billion tonnes of ore

·     Company remains debt free

·     Loss for the year of £0.48m compared to £3.77m in the previous year

Commenting on the future, Bill Humphries, Chairman, said:

"We believe that the increased tonnage from this season's drilling campaign could  support an economically viable nickel mining project. Accordingly we will commence pre-feasibility studies in the fourth quarter of 2012 once we have completed a resource update."

Enquiries:

Bill Humphries, Chairman                                                              07734 681262

Richard Prickett, Chief Executive Officer                                       07775 651421

Landore Resources Limited                                                           www.landore.com

Simon Raggett /Angela Hallett

Strand Hanson Limited

Nominated Adviser/ Broker                                                           020 7409 3494

David Bick

PR Adviser                                                                                   07831 381201

The Board of Landore is pleased to announce its audited results for the year to 31 December 2011.

Chairman's statement

I am pleased to present the 2011 Annual Report for Landore Resources Limited ("the Group").

The Group made very significant progress on the Junior Lake projects during 2011. Firstly by continued exploration of the Nickel Projects and secondly by the creation of a new company Lamaune Iron Inc, which was demerged from the Group in July 2011. Full details are set out below and in the Operations report which follow.

Financial results

In the year ended 31 December 2011, the Group incurred a loss of £485,403 (2010: £3,773,758). This was greatly reduced from the previous year mainly by the sale of the Lamaune Iron property for £3,913,447 (C$6.2 million). The main expenditure item of direct explorations costs amounted to £2,930,326 during the period. This expenditure was funded by share placements which raised approximately £3.9 million during 2011.

The Group has no debt but continues to raise further equity as needed to carry out its development plans.

The Junior Lake project

The property is situated 235 kilometres northeast of Thunder Bay in the province of Ontario, and is highly prospective for numerous metals including, iron ore, nickel, copper, PGEs, gold and lithium.

Lamaune Iron Inc

In July 2011 Lamaune Iron Inc was demerged from the Group to existing shareholders. The main features of Lamaune Iron Inc are:

• Low cost 100 per cent. owned Ontario iron project
• Deposit outcrops on surface
• Excellent access to rail and port infrastructure
• Potential offtake partners in Great Lakes region.
• Growth potential to define more than 1 billion tonnes of Iron ore.

Further information can be viewed on the website, www.lamauneiron.com

Junior Lake Nickel projects

The combined resources of the VW and B4-7 nickel deposits are in excess of 48,000 tonnes of nickel equivalent.

Recent exploration work in late 2011 and the first half of 2012 have greatly increased our confidence that the resources can be significantly enhanced. The recently reported drilling has consistently intersected massive sulphide mineralisation with high grades and widths up to approximately 30 metres.

We believe that the increased tonnage from this season's drilling campaign will support an economically viable mining project, accordingly we will commence pre-feasibility studies in the fourth quarter of 2012 once we have completed a resource update.

Initial internal studies illustrate that a simple flotation/concentrate plant would require capital of approximately $50 million, based on similar size plants around the world. These studies also estimated the operation, refining, transportation and smelting costs to be around $12,000 per tonne for nickel in concentrate, leaving a sound profit margin at today's nickel prices.

Both deposits are open along strike to the east and west down plunge which demonstrates the potential of continued growth in resources.

Infrastructure

This multi commodity asset benefits from an existing and excellent infrastructure. There is very good road access all year round and the Canadian National Railway is only 13 kilometres from the property. In addition, there is plentiful water and the planned link into the Hydropower system by 2015.

Community relations

Landore continues to maintain excellent relationships with the local First Nations on whose traditional lands our Junior Lake property is located. We have now enjoyed many years of successful co-operation and have just renewed our Memorandum of Understanding.

I would once again like to thank the management and all staff at Thunder Bay and on site for their continued dedication and performance this year.

William Humphries

Chairman

Operations report

Introduction

Landore Resources Limited, through its 100 per cent. owned subsidiary Landore Resources Canada Inc. (Landore), is actively engaged in mineral exploration in Eastern Canada. Landore owns or has the mineral rights to six properties in Eastern Canada, owned 100 per cent., of which Mount Fronsac is optioned to a third party. Landore also owns a 30 per cent. interest in the West Graham property.

Landore through its 100 per cent. owned subsidiary Brancote US, owns or has the mineral rights to eight properties for 99 claims in the State of Nevada.

Landore's exploration focus is on the highly prospective Junior Lake property, Ontario.

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 B4-7 Nickel-Copper-Cobalt-PGEs deposit, the VW Nickel deposit, and numerous other highly prospective mineral occurrences. The Junior Lake property also hosted the Lamaune Iron and Lamaune Gold prospects which have now been transferred to the new company Lamaune Iron Inc.

In 2005, encouraged by favourable global nickel market conditions, Landore intensified its exploration effort on the Junior Lake property where the B4-7 Nickel deposit, discovered by International Mogul Inc. in 1969, was located. In Q4 2005 the VW Nickel deposit was discovered. Subsequent drilling in 2006 and 2007 delineated the VW and B4-7 deposits and brought them to Canadian National Instrument 43-101 (NI 43-101) compliant resources.

In 2008 with the burgeoning demand for iron on the world market and the decreasing demand for nickel, Landore decided to shift focus to its prospective Lamaune Magnetite Iron occurrence located on the western portion of the Junior Lake property. Drilling activities during 2009 and 2010 were concentrated on establishing the extent and grade of the iron mineralisation.

To date, exploration on the Lamaune Iron deposit has delineated an 'Exploration Potential' of 300 to 500 million tonnes of mineralisation grading from 25 per cent. Fe to 35 per cent. Fe (2011: NI 43-101 Technical Report).

In June 2011, Landore decided that the Lamaune Iron deposit required a separate management team and resources to carry the deposit through to production. The Lamaune block, comprised of 23 claims, for 4,096 hectares, containing the Lamaune Iron deposit as well as the Lamaune Gold prospect, was transferred into a separate private company ('Lamaune Iron Inc.'). This new company is pursuing an IPO, on an appropriate market in 2012.

The Junior Lake property extends for 31 kilometres and covers an area of 31,603 hectares.

Current metal prices have positively impacted the economic viability of the B4-7 and VW deposits and facilitated the advancement of these deposits to development stage. With this in mind, Landore has refocused its exploration effort onto its Junior Lake Nickel projects.

The existing combined resources of the VW and B4-7 stand at 48,281 tonnes of NiEq, 82 per cent. of which is in the Indicated category. Landore believes that for the Junior Lake Nickel projects to be economically viable, the above tonnage needs to be increased by 20 to 30 per cent.

Accordingly, Landore's exploration effort during 2011 was concentrated on the discovery of additional mineralisation in the vicinity of the two main deposits. A 2011 drilling campaign on the B4-8 conductor located adjacent to the B4-7 deposit yielded encouraging results. Landore believes that this area, which extends for approximately 800 metres west from the B4-7 deposit, is highly prospective for nickel and copper mineralisation.

B4-7 Nickel - Copper - Cobalt - PGEs deposit

The B4-7 deposit is located in the centre of the 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.

In Q1 2010, an NI 43-101 compliant report and resource estimate upgrade for the B4-7 deposit was completed. The resource estimate, using a cut-off grade of 0.25 per cent. nickel reported:

• Indicated       -        2 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.

Preliminary metallurgical studies completed in 2010 indicate the nickel concentrate grades and recoveries of 13.5 per cent. nickel at 53 per cent. recovery with 17 per cent. copper at 87 per cent. recovery is achievable. Marketable concentrate can be achieved with further processing stages to upgrade the nickel, copper and PGE content with the rejection of pyrrhotite.

In Q4 2011, Landore recommenced drilling on the B4-7. To date, 49 drill-holes and two re-entered holes, for 11,734 metres, had been completed. Drilling has enhanced the size of this deposit as well as proved continuity of the deposit's valuable PGE-endowed polymetallic zone (Alpha zone). Results returned so far have been highly promising, successfully extending the deposit together with advancing inferred portions of the deposit to indicated status.

B4-7 mineralised intersections include:

Drill-hole No	From metres	Width* metres	Ni %	Cu %	Co %	Pd ppb	Pt ppb	Au ppb
0411-358B	362.00	6.45	0.06	0.01	0.00	1,881	298	20
including	366.00	1.00	0.05	0.01	0.00	8,445	908	75
and	436.60	11.60	0.67	0.29	0.06	966	318	45
including	436.60	2.90	0.73	0.34	0.07	1,394	700	31
and	452.48	7.60	0.69	0.25	0.05	885	492	48
including	452.48	3.52	0.89	0.21	0.06	1,521	771	48
0411-360	325.77	2.23	1.11	0.18	0.04	2,235	340	9
0411-361	466.76	2.86	1.20	0.55	0.04	768	95	35
and	480.87	17.35	0.64	0.53	0.05	316	41	91
including	480.87	4.13	0.89	0.55	0.07	311	17	33
0411-363	495.32	1.74	0.84	0.37	0.07	480	155	18
and	516.05	4.00	0.49	1.02	0.05	579	88	63
and	530.00	12.72	0.60	0.56	0.05	272	110	37
including	536.50	3.66	0.91	0.24	0.08	341	135	23
0411-365	461.60	3.30	0.61	0.79	0.09	294	33	15
0411-366	496.45	1.93	0.63	1.09	0.04	2392	39	82
0409-238	116.00	19.83	0.61	0.59	0.05	593	122	41
including	129.30	5.75	0.94	0.51	0.07	750	151	18
0412-367	52.00	5.13	0.51	0.45	0.05	545	104	62
0412-371	57.50	17.38	0.79	0.43	0.06	816	176	15
including	57.50	7.50	0.97	0.52	0.06	1,033	215	22
0412-372	191.36	8.30	0.75	0.39	0.07	518	205	16
including	191.36	2.14	0.78	0.27	0.05	1,321	459	21
0412-374	96.60	13.96	0.71	0.61	0.07	591	98	31
0412-375	191.00	13.72	0.69	0.41	0.05	533	126	15
0412-379	148.55	12.10	0.32	0.26	0.03	1,303	145	63
including	153.00	3.00	0.46	0.37	0.04	4,327	454	181

*The actual true thickness of mineralisation is estimated to represent between 75-80 per cent. of the intervals shown in the above table.

The current drilling is also targeting the adjacent polymetallic Alpha zone located up to 70 metres to the north of the B4-7 main mineralised zone at 75W and merging with the main zone at approximately 350E. The Alpha zone consists of a series of sub-vertical contacts within metamorphosed gabbros, contains significant palladium and platinum, in addition to elevated nickel, copper and cobalt.

Previously there were insufficient intersections of the Alpha zone for its inclusion into the resource. However the current drilling is successfully establishing continuity along strike.

Polymetallic alpha zone mineralised intersections include:

Drill-hole No	From metres	Width* metres	Pd ppb	Pt ppb	Ni %	Cu %	Co %	Au ppb
0409-237	33.00	3.00	6,139	1,381	0.33	0.06	0.02	20
including	34.00	1.00	13,100	2,580	0.49	0.04	0.02	48
and	59.16	0.59	5,180	1,321	1.45	0.31	0.06	29
0412-369	90.95	1.85	1,557	331	0.53	0.09	0.03	3
0412-370	171.00	3.00	2,134	171	0.29	0.06	0.02	11
and	205.37	6.48	1,263	200	0.14	0.13	0.01	6

*The actual true thickness of mineralisation is estimated to represent between 75-80 per cent. of the intervals shown in the above table.

The B4-7 deposit, so far delineated over 650 metres of strike, remains open to the east and west along strike 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 800 metres to the west.

The results of the current drilling campaign demonstrates that there is the potential to increase the size of the B4-7 deposit and contribute significantly to the overall economic viability of the Junior Lake Nickel project.

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. 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.

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. 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. 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.

B4-8 zone

An exploration drill campaign consisting of 49 drill-holes and one re-entered drill hole, for 11,354 metres, was carried out from Q2 to Q4 2011 on the B4-8 geophysical conductor and coincident geophysical anomaly, in the vicinity and west of the B4-7 deposit.

Drilling on the B4-8 has revealed a similar style of nickel-copper mineralisation to the hanging wall mineralisation in the adjacent B4-7 deposit. Elevated mineralisation is hosted in disseminated to massive sulphides in gabbroic rocks and occurs sub-vertically, often within shear zones. Mineralisation is also localised in fractures, foliations and gashes.

Mineralised intersections include:

Drill-hole No	From metres	Width metres	Ni %	Cu %	Co %	Pd ppb	Pt ppb	Au ppb
0411-315	185.50	3.00	0.23	0.33	0.02	134	35	10
0411-318	125.95	2.77	0.27	0.34	0.03	306	51	11
0411-321	209.25	0.64	0.67	0.25	0.03	459	423	16
0411-322	98.71	2.69	0.54	0.15	0.04	472	54	9
0411-323	43.23	25.68	0.13	0.66	0.02	139	26	43
Incl.	55.82	10.01	0.18	1.17	0.03	230	31	83
Incl.	57.70	1.00	0.13	3.69	0.02	289	<15	276
0411-328	76.36	12.64	0.15	1.01	0.03	223	63	124
Incl.	86.63	1.19	0.09	3.49	0.03	186	<15	329
0411-337	167.00	2.15	0.47	1.13	0.06	124	36	84

Note: Drill-hole 0411-328 was drilled as a 'scissor hole' to the elevated copper and nickel intersection in drill-hole 0411-323.

Planned

Landore will utilise the B4-7 drilling results to produce an updated resource estimate, anticipated for completion in Q3 2012. Pre-feasibility studies on the combined B4-7 and the VW deposits will be initiated in Q4 2012. Further drilling will be carried out on the VW deposits in 2013 to extend the known deposit and to advance the Inferred resource to Indicated status.

Results from B4-8 drilling are very promising and further drilling is programmed for Q2 and Q4 2012 to fully delineate the base metal mineralisation.

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.

Environmental Baseline Studies

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.

Mining leases

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:

• 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.

MIMINISKA LAKE - KEEZHIK LAKE PROPERTIES

Miminiska Lake property

Landore's Miminiska Lake property, 100 per cent. owned by Landore, covers an area of 5,494 hectares and is located approximately 130 kilometres to the north of the Junior Lake property and 115 kilometres to the east of the Pickle Lake mining camp in the highly productive and prospective Uchi Belt. Landore completed four drilling campaigns between 2003 and 2005 on the Miminiska gold occurrence with 47 NQ diamond drill holes for 9,349 metres, focusing on two potential shoots within a known 800 metres strike length. Excellent results were received with grades reporting up to 131 g/t gold over 0.5 metres and 40.2 g/t gold over 2.3 metres.

An independent technical review was completed in 2009 on the Miminiska Lake property which established the presence of two exploration targets:

• Miminiska Lake - 232,000 tonnes at 5.62 g/t gold
• Frond Lake - 271,000 tonnes at 5.10 g/t gold

for a total of 503,000 tonnes at 5.34 g/t for 86,357 ounces of gold.

Both these exploration targets are open along strike and at depth and have good potential for expansion and upgrading to a mineral resource.

Keezhik Lake property

Landore holds 55 mining claim blocks, for 12,482 hectares, in the highly prospective Keezhik Lake area, located 20 kilometres north of Landore's Miminiska Lake property and 150 kilometres southeast of Goldcorp's Musselwhite Gold mine.

During 2011, Landore consolidated its land package by staking 13 claim blocks, for 2,710 hectares, to encompass surrounding historic gold occurrences. As well, Landore purchased outright one claim from a third party, subject to a 2 per cent. net smelter return (NSR). Landore's land package now spans over 20 kilometres across prime gold exploration targets.

The Keezhik Lake area is adjacent to the North-Caribou - Totogan Shear Zone that is also host to Goldcorp's Musselwhite Gold mine, located 150 kilometres to the northwest. The Musselwhite Gold mine has produced in excess of 2.5 million ounces with 2 million ounces of gold in mineral reserve. The Keezhik Lake claims are also located in the highly productive and prospective Uchi Belt.

During Q3 2011, a field reconnaissance, mapping and sampling campaign was carried out at Keezhik Lake. Field investigation of geophysical anomalies, prospective geological features, and historical gold showings revealed several areas of interest on the property. Rock and soil sampling confirmed the existing gold occurrences, as well as identified new zones hosting lithologies prospective for gold mineralisation. Highlights of grab rock sampling include 19.82 g/t Au from a felsic outcrop and 2.03 g/t Au from a sheared melagabbro containing a one foot wide quartz vein. These results warrant follow-up exploration work.

Planned

A 1,500 metre drilling campaign is scheduled for Q1 2013 to test prospective areas indicated by 2011 field investigations.

LESSARD, COPPER - ZINC - SILVER PROJECT

The Lessard property, located approximately 107 kilometres north of the town of Chibougamau in the province of Quebec, comprises 109 claims for 2,168 hectares. Lessard hosts a copper-zinc-silver deposit with a historic resource reported in a feasibility study in 1975 by Selco Mining Corporation Ltd.

In September 2008, a resource estimate compliant to NI 43-101 was completed on the Lessard deposit. The resource estimate reported 740,000 tonnes at 1.88 per cent. Cu, 3.50 per cent. Zn, 38.62 g/t silver and 0.84 g/t gold using an NSR value of US$206.52. All of the resource is in the Inferred category. The Lessard deposit remains open down dip.

During Q3 to Q4 2011, a field reconnaissance, mapping and sampling campaign was carried out on the Lessard property. This exploration programme outlined prospective targets for copper and zinc, as well as identified the potential for silver and gold mineralisation. Geological mapping investigated surficial exposures of geophysical anomalies, as well as targeting potential base metals hosted in several lithologies.

Highlights of grab rock sampling include 0.69 per cent. Cu and 0.32g/t Au yielded from a fine grained, silicified intermediate volcanic rock. This and other encouraging mineralisation was revealed through the 2011 field investigations, and several areas of interest on the property were identified for follow-up exploration.

Planned

Landore intends to carry out a trenching and channel sampling campaign on the Lessard property during Q3 2012.

ROOT LAKE LITHIUM PROPERTY

The Root Lake Lithium property, 100 per cent. owned by Landore, is located approximately 300 kilometres northwest of Thunder Bay, and consists of 33 patented claims for a total of 513.43 hectares. It is host to the McCombe Pegmatite, which was initially discovered by Capital Lithium Mines Ltd. in 1956 during an exploration boom for lithium and is one of a number of rare-element pegmatites that occur over a 350 kilometres strike-length of the boundary zone between the Uchi and the English River geological sub-provinces, in the Superior Province of Ontario.

The McCombe Pegmatite, comprising two main spodumene-bearing dykes, has been traced

on surface for a strike length of 550 metres with widths up to 19 metres. Capital Lithium Mines Ltd. completed a diamond drilling programme on the Root Lake property in 1956, consisting of 55 drill holes for 10,442 metres, establishing a resource of 2.3 million tonnes grading 1.3 per cent. Lithium Oxide (Li2O) on the McCombe Pegmatite. (Mulligan1965). This resource is not compliant to NI 43-101.

An independent technical review was completed in February 2010 on the Root Lake Lithium property which confirmed the presence of an exploration target of approximate size and grade similar to the historic resource.

No exploration was carried out on the Root Lake property during this past year.

OTHER PROPERTIES

Landore has other non-core exploration properties which include grass roots exploration and defined drill targets.

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

Landore believes that a successful project is best achieved through maintaining close working relationships with First Nations and other local communities. This social ideology is at the forefront of all of Landore's exploration initiatives by establishing and maintaining co-operative relationships with First Nations communities, hiring local personnel and using local contractors and suppliers.

In 2012, Landore signed an updated Junior Lake Memorandum of Understanding (MOU) with the Whitesands First Nations community. With this agreement, Landore will continue with development of the Junior Lake property with the co-operation of local First Nations peoples.

Careful attention is given to ensure that all exploration activity is performed in an environmentally responsible manner and abides by all relevant mining and environmental acts. Landore takes a conscientious role in all of its operations, and is aware of its social responsibility and its environmental duty.

Michele Tuomi, P.Geo.

Senior Geologist, Landore Resources Canada Inc

Consolidated statement of comprehensive loss

for the year ended 31 December 2011

		Group 31 December 2011 £	Group 31 December 2010 £
Exploration costs		(2,930,326)	(2,653,910)
Other income		3,913,447	-
Administrative expenses		(1,545,659)	(1,124,981)
Operating loss		(562,538)	(3,778,891)
Finance income		77,135	5,133
Loss before income tax		(485,403)	(3,773,758)
Income tax expense		-	-
Total loss for the year		(485,403)	(3,773,758)
Other comprehensive income/(loss):
Exchange difference on translating foreign operations		83,269	(29,475)
Other comprehensive income/(loss) for the year net of tax		83,269	(29,475)
Total comprehensive loss for year		(402,134)	(3,803,233)
Loss attributable to:
Equity holders of the Company		(485,403)	(3,773,758)
Total comprehensive loss attributable to:
Equity holders of the Company		(402,134)	(3,803,233)
Loss per share for losses attributable to the equity
holders of the Company during the year
- basic		(0.002)	(0.017)
- diluted		(0.002)	(0.017)

The Group's operating loss relates to continuing operations.

 

Consolidated statement of financial position

at 31 December 2011

		Group At 31 December 2011 £	Group At 31 December 2010 £
Assets
Non current assets
Property, plant and equipment		97,224	119,862
		97,224	119,862
Current assets
Trade and other receivables		4,249,129	83,390
Cash and cash equivalents		435,519	782,959
		4,684,648	866,349
Total assets		4,781,872	986,211
Equity
Capital and reserves attributable to the Company's  equity holders
Share capital		2,637,103	2,371,853
Share premium		21,616,466	17,951,320
Share options		1,139,177	834,958
Warrants		-	143,659
Accumulated losses		(21,148,655)	(20,688,413)
Cumulative translation reserve		257,854	174,585
Total equity		4,501,945	787,962
Liabilities
Non current liabilities
Income tax liabilities		15,225	23,265
		15,225	23,265
Current liabilities
Trade and other payables		241,865	159,474
Income tax liabilities		22,837	15,510
		264,702	174,984
Total liabilities		279,927	198,249
Total equity and liabilities		4,781,872	986,211

 

Consolidated statement of changes in equity

for the year ended 31 December 2011

	Share capital £	Share premium £	Share options £	Warrants £	Retained earnings £	Cumulative translation reserve £	Total £
Balance at 1 January 2010	1,899,593	14,691,157	860,880	143,659	(16,968,271)	204,060	831,078
Loss for the year	-	-	-	-	(3,773,758)	-	(3,773,758)
Other comprehensive loss for the year	-	-	-	-	-	(29,475)	(29,475)
Issue of ordinary share capital	472,260	3,370,375	-	-	-	-	3,842,635
Issue cost	-	(110,212)	-	-	-	-	(110,212)
Share option adjustment	-	-	(25,922)	-	53,616	-	27,694
Balance at 31 December 2010	2,371,853	17,951,320	834,958	143,659	(20,688,413)	174,585	787,962
Balance at 1 January 2011	2,371,853	17,951,320	834,958	143,659	(20,688,413)	174,585	787,962
Loss for the year	-	-	-	-	(485,403)	-	(485,403)
Other comprehensive loss for the year	-	-	-	-	-	83,269	83,269
Issue of ordinary share  capital (Note 12)	265,250	3,687,250	-	-	-	-	3,952,500
Issue cost (Note 12)	-	(165,763)	-	-	-	-	(165,763)
Share warrant adjustment	-	143,659	-	(143,659)	-	-	-
Share option adjustment (Note 13)	-	-	304,219	-	25,161	-	329,380
Balance at 31 December 2011	2,637,103	21,616,466	1,139,177	-	(21,148,655)	257,854	4,501,945

Consolidated statement of cash flows

for the year ended 31 December 2011

		Group 31 December 2011 £	Group 31 December 2010 £
Cash flows from operating activities
Operating loss		(562,538)	(3,778,891)
Finance income		77,135	5,133
Depreciation of tangible fixed assets		31,047	34,966
Foreign exchange gain on non-cash items		(58,013)	(32,248)
Share options		329,380	27,694
(Increase)/decrease in debtors		(4,138,755)	60,038
Increase/(decrease) in creditors		197,253	(27,055)
Net cash outflow from operating activities		(4,124,491)	(3,710,363)
Cash flows from investing activities
Purchase of property, plant and equipment		(10,760)	(25,109)
		(10,760)	(25,109)
Cash flows from financing activities
Issue of ordinary share capital		3,952,500	3,842,635
Issue costs		(165,763)	(110,212)
		3,786,737	3,732,423
Net decrease in cash and cash equivalents		(348,514)	(3,049)
Cash and cash equivalents at beginning of financial year		782,959	792,584
Exchange gain/(loss) on cash and cash equivalents		1,074	(6,576)
Cash and cash equivalents at end of financial year		435,519	782,959

Notes to the financial statements

for the year ended 31 December 2011

1.       Mineral properties - Group

	1 January 2011 £	Net expense in the period £	Accumulated expenditure at 31 December 2011 £	Proceeds from Disposal at 31 December 2011 £	Accumulated expenditure at 31 December 2011 £
Junior Lake/Lamaune Lake	11,227,431	2,623,108	13,850,539	(3,905,409)	9,945,130
Miminiska Lake	1,253,919	248,396	1,502,315	-	1,502,315
Lessard	650,983	50,695	701,678	-	701,678
Frond Lake	72,509	1,349	73,858	-	73,858
Wottam	61,558	-	61,558	-	61,558
Other/including Swole Lake
and West Graham	43,183	6,778	49,961	-	49,961
	13,309,583	2,930,326	16,239,909	(3,905,409)	12,334,500

1.1     Junior Lake

Junior Lake is a nickel, copper, platinum group metals and gold exploration project located approximately 235 kilometres north of Thunder Bay in Northern Ontario, Canada. The property consists of five leased claims, and 133 staked claims, wholly owned by the Group.

A total of eight claims in the original property block are subject to a 2 per cent. net smelter return ("NSR"). The Junior Lake property encompasses the Lamaune and Swole property blocks. The Lamaune property block was sold during the year to Lamaune Iron Inc. for £3,905,409 (C$6.2 million).

1.2     Miminiska Lake

Miminiska Lake, wholly owned by the Group, is a gold exploration project located approximately 115 kilometres east of Pickle Lake in Northern Ontario, Canada. The property consists of a southern block of 28 patented and 43 staked claims ("Miminiska Lake"), and a northern block consisting of 55 staked claims ("Keezhik Lake"). Both blocks are wholly owned by the Group.

1.3     Lessard

Lessard is a zinc, copper property comprised of 109 mining claims located approximately 107 kilometres north of the town of Chibougamau, in the province of Quebec, Canada.

The property is wholly owned by the Group.

1.4     Frond Lake

Frond Lake is a gold property located about 125 kilometres east of Pickle Lake in Northern Ontario, Canada. The property is comprised of 24 patented claims contiguous to the east of the Wottam property. The Frond Lake property claims are wholly owned by the Group subject to a 2 per cent. NSR to the original owners of the property.

1.5     Wottam

The Wottam property is a gold exploration project located 120 kilometres east of Pickle Lake in Northern Ontario, Canada. The property is wholly owned by the Group and includes 20 claims contiguous and between the Miminiska and Frond properties.

1.6     Swole Lake

Swole Lake is host to nickel, copper, platinum group metals, and lithium occurrences. The Swole Lake mining claim, wholly owned by the Group, is consolidated into the greater Junior Lake property. The Swole Lake claim is subject to a 2 per cent. NSR to the original holder of the claim.

1.7     West Graham

Included in other properties West Graham is a nickel, copper, platinum group metals property comprised of one patented claim wholly owned by the Group. The property is located 25 kilometres southwest of Sudbury and 1.5 kilometres east of the Lockerby nickel mine. On 21 November 2005, First Nickel Inc. optioned the property from the Group and, under the terms of an agreement, earned 70 per cent. with the possibility of earning a further 15 per cent. interest subject to certain conditions.

2.       Loss per share

The calculation of the basic loss per share is based on the loss for the financial year divided by the weighted average number of shares being 234,806,648 (2010: 215,789,922) in issue during the year.

The potential ordinary shares which arise as a result of the options in issue are not dilutive under the terms of IAS 33 because they would reduce the loss per share. Accordingly there is no difference between the basic and dilutive loss per share.

3.       Analysis of net funds - Group

	At 1 January 2011 £	Cash flow £	Exchange gains £	At 31 December 2011 £
Cash and cash equivalents	782,959	(348,510)	1,070	435,519
Total	782,959	(348,510)	1,070	435,519

4.       Related party transactions

Advances were received by Landore Resources Canada Inc. from Landore Resources Limited. These were unsecured, non interest bearing and repayable on demand.

Helen Green, a Director of the Company, is also a Director of Saffery Champness Management International Limited ("SCMIL") and Rysaffe International Services Limited ("Rysaffe"). SCMIL were paid £65,683 (2010: £56,350) in the period in respect of its role as administrators for the Company and Rysaffe was paid £10,000 (2010: £10,000) in respect of its role as Company Secretary. An amount of £10,410 (2010: £7,610) was owing to SCMIL at the year-end. The amount owing to Rysaffe at year end was £nil (2010: £nil). All transactions are at market value.

Landore Resources Canada Inc. paid management fees to a Director of the Company in the amount of C$35,000 (2010: C$30,000). At the year end, C$nil (2010: C$60,000) remains outstanding and has been included in trade payables.

At year end advances and receivables are outstanding from Lamaune Iron Inc., a company under common control, in the amount of C$6,336,034 (2010: C$nil). The equivalent sterling amount is £4,019,306.

On 1 February 2011, 1,130,000 shares were purchased at 15 pence per share by William Humphries, a Director of the Company. On 9 June 2011, a further 665,000 shares were purchased at 15 pence per share by William Humphries.

5.       Subsequent events

On 6 March 2012 the Group issued 30,100,000 new ordinary shares of 1p at a price of 7.5 pence per share to raise approximately £2.26 million, of which 4,057,335 shares were issued to Directors of the Company.

On 6 March 2012 the Group issued 173,500 new ordinary shares of 1 pence at a price of 7.5 pence per share in relation to advisory services received.

6.       Publication of non statutory accounts

The financial information set out in this preliminary announcement does not constitute statutory accounts.

The balance sheet at 31 December 2011 and the profit and loss account, cash flow statement and associated notes for the year then ended have been extracted from the Group's 2011 statutory financial statements upon which the auditors' opinion is unqualified.

7.       Annual Report

The Annual Report for the year ended 31 December 2011 will be posted to shareholders today. The Annual General Meeting of the Company will be held at The Cavalry & Guards Club, 127 Piccadilly, London W1V 0PX on Wednesday, 20 June 2012 at 11.00 am.

Copies of the report are available from the Company's registered office at P O Box 141, La Tonnelle House, Les Banques, St Sampson, Guernsey GY1 3HS and also from the Company's website www.landore.com.

 

END

 

 

FR SELFSUFESEEI