Landore makes "significant" gold discovery in Canada

Thu Dec 3, 2009 6:49am EST
 
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By Shivani Singh

BANGALORE (Reuters) - Canada-focused Landore Resources Ltd said it made a "significant" gold discovery at its Junior Lake property in Ontario and plans to raise money in the first or second quarter of next year.

The company expects to have details on the size of its iron resource early next year, Chief Executive Richard Prickett told Reuters.

Landore, which has historically raised money through issuing equity, has no debt on its balance sheet, he added.

"We do not have any immediate requirement for capital," he said.

The company discovered traces of gold at its Junior Lake property while it was in the process of proving the size of its iron ore resources.

Earlier on Thursday, the company said it staked claim on an additional 80 mining blocks, mainly to the north of the new gold discovery, doubling the size of the Junior Lake property to 31,953 hectares.

Landore said drill results from the Lamaune Gold prospect, together with the results from the geological review, supported the potential for economic gold mineralization on the Junior lake property.

Shares of the company were up 3.2 percent at 16.25 pence at 1146 GMT on the London Stock Exchange. They rose more than 14 percent to touch a high of 18 pence earlier in the session. (Reporting by Shivani Singh in Bangalore; Editing by Vinu Pilakkott and Aradhana Aravindan)