TORONTO, ONTARIO--(Marketwired - Sept. 4, 2013) - Kilo Goldmines Ltd. (TSX VENTURE:KGL)(FRANKFURT:02K) ("KGL" or the "Company") is pleased to announce that a review of exploration data produced by Rio Tinto Mining and Exploration (RTME) during its joint venture (JV) agreement with KGL from 2007 to 2012 has been completed by Roscoe Postle Associates (RPA). The findings of this review are summarised herewith.
HIGHLIGHTS
- Ngayu greenstone belt (Figure 1)
- five licences covering some 749 km2
- itabrites (metamorphosed banded iron formation) potentially extends over a 20 km non-contiguous strike length (as defined by airborne geophysics)
- initial analytical results suggest that mineralized material may be suitable as Direct Shipping Ore (DSO)
- RPA estimates that Mt Asonga may contain between 750 to 1500 Mt of mineralized material, grading 59 - 65% Fe focused on a 19 km2 area on Mt Asonga. Note that the potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. Furthermore:
- 12 Diamond drill holes totalling 1198 m were drilled by RTME
- minimal overburden and intercepts up to 127 m with an average overall seam thickness of 70 m
- Reconnaissance sampling has confirmed the presence of mineralization at an exploration target to the southeast of Mt. Asonga known as Mt. Zatua. This shares the characteristic of coincident topographical highs and magnetic anomalies that have been observed at Mt. Asonga
- Isiro greenstone belt (Figure 2)
- 7 licences covering 1306 km2
- itabrites (metamorphosed banded iron formation) potentially extends over a 60 km non-contiguous strike length (as defined by airborne geophysics)
- outcrops at Mt. Abambula and Mt. Dududu contain both massive and laminated types of hematite mineralization
In RPA's opinion, the project warrants additional exploration to estimate Mineral Resources and bring the project to a Preliminary Economic Assessment level, as well as further exploration on the other targets.
Alex van Hoeken, President and CEO of KGL, stated: "The RPA review of the RTME data, indicates that the licences held by KGL, have the potential of generating an iron deposit of regional and global significance.
Whilst KGL's primary business focus is the KGL Somituri gold project, this review indicates that the iron potential of the exploration licences held by KGL Isiro SARL can potentially add significant value. KGL will over the coming months approach potential business partners, with the view of soliciting a new JV partner for the development of this iron ore deposit."
BACKGROUND
The 12 exploration licences covering some 2056 km2 are held in the name of KGL Isiro SARL (Figure 3), a company registered in the Democratic Republic of Congo (DRC). Through this entity, Randgold Resources and KGL also have a joint venture for gold and associated minerals only, whilst all other non-gold rights (iron) remain contractually with KGL and its minority partner Suez Holdings, a private Jersey registered holding company and the original owner of the licences.
During the joint venture period RTME had purchased a 15% equity stake in the project. In exchange for this equity and in recognition of exploration effort expended including discovery of the Mt Asonga prospect, RTME's equity stake was swapped for a 0.8% production royalty over 8 years. The final contractual iron ownership is 89% KGL and 11% Suez Holdings.
RTME terminated the JV agreement with KGL in April of 2013 and as per the termination agreement, RTME provided the entire data set collected during the joint venture period. This data set included: geophysical and remote sensing data over the entire property; down-hole drill logging and surveys from 12 holes totalling some 1198 m of drilling; reconnaissance sampling; basic lithology information and analytical results and certificates.
In July of 2013, KGL submitted the data supplied by RTME to international mining consultants Roscoe Postle Associates (RPA), for an independent assessment of the data. RPA subsequently produced a report based on a review of the available data and a site visit by Mr Ian Blakley, VP and General Manager of RPA UK Ltd (qualified person) to Mt Asonga and RMTE's former base camp at Isiro (core storage facility). The drill core was cut in half and one-half was submitted by RTME to Ultra Trace Pty. Ltd in Perth, Western Australia, for X-ray fluorescence (XRF) analysis.
QUALIFIED PERSON
The data review disclosed in this press release was supervised by RPA's geological consultant Pierre Landry. Pierre Landry, B.Sc.H., P.Geo., is also the 'qualified person' (as that term is defined under National Instrument 43-101) retained by the Company who has reviewed the scientific and technical information contained in this release.
ABOUT KILO
Kilo Goldmines Ltd. (KGL) is a Canadian gold exploration company, listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. KGL holds exploitation and exploration licences covering ≈3000 km2 of favourable Archaen Kabalian Greenstones in the northeast Democratic Republic of Congo an area historically referred to as the Kilo-Moto region, a historic gold-producing region (11 Moz, Mineweb).
Incorporated within these licences, is the Somituri Project (71.25% owned by KGL), comprising eight non-contiguous licences (606 km2) and the KGL Isiro SARL Joint Venture (JV) with Randgold Resources Ltd (2056 km2), for gold and associated minerals only. The KGL Isiro SARL Exploration Licences were transferred from KGL Iron SPRL following the termination of an agreement for iron by RTME.
Additionally:
- KGL has retained the rights to explore for and develop any iron ore deposit associated with the licences held by KGL Isiro SARL.
- KGL has a minority interest in the Hajigak iron ore project in Afghanistan.
DISCLAIMER
This news release may contain forward-looking statements concerning future operations of Kilo Goldmines Ltd. All forward-looking statements concerning Kilo's future plans and operations, including management's assessment KGL's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond Kilo's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the figures accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/896013.pdf
