TORONTO, ONTARIO--(Marketwired - Jul 28, 2014) - Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE:KGL) (FRANKFURT:02K) is pleased to announce that Randgold Resources Limited ("RRL") has provided the following update on the 2 057 km² Kilo - Randgold joint venture ("JV") on the Ngayu and Isiro Archaean Greenstone Belts in Oriental Province, Democratic Republic of the Congo ("DRC").
Highlights
- Regional soil sampling and geological mapping over the priority areas of the Isiro
Belt is complete. All results have been received and 5 identified targets are highlighted. - Infill soil sampling over the Yambenda target (Ngayu Belt) is complete and results confirm the 9.5 km x 200 m wide 50 ppb Au anomaly spatially associated with a ridge of banded iron formation.
- Trenching at Yambenda has commenced.
- Infill soil sampling at Mbese and Zimamoto (Ngayu Belt) has commenced in order to follow up on the Au-As association from the regional soil program.
Alex van Hoeken, President and CEO of Kilo, today stated:
"Our partner Randgold continues to methodically advance the exploration of the joint venture area, and it is very encouraging that, in addition to the previously identified targets in the Ngayu belt, the Isiro belt has also yielded areas of potential discovery thus enhancing the prospectivity of the entire joint venture area."
ISIRO BELT TARGETS
Regional soil sampling over the priority conceptual targets of the Isiro belt is complete, covering a total of 400 km2 (Figure 1). The soil samples (4841 in total) were taken from a 400 m x 200 m grid at ± 50 cm depth below the humus horizon. The samples were sun dried and sieved (-80#) at Isiro Camp before being sent to the SGS laboratory in Doko (Kibali) or Mwanza (in Tanzania). The samples were analysed by fire assay. Additional information including topography, grain size, colour, old/artisanal workings, farms, villages, roads, outcrop and regolith were recorded during sampling. In addition, 76 rock samples were taken with results from the SGS laboratory pending.
All soil sample results have been received, highlighting five identified targets described below in order of priority. Regional form line analysis, constructed at 1:25000 scale (Figure 1b), was completed to assess whether any of the anomalous areas coincide with structural discontinuities.
Logistical issues have thus far limited the amount of data gathered at the extreme east of the Isiro Belt.
Bodjo Target
Gold in soil results reveal a 4 km x 500 m WNW trending anomaly at 30 ppb including 1 km x 150m @ 100 ppb. A second anomaly to the east measures 2.2 km x 400 m @ 30 ppb. The anomalies overlie insitu material associated with a WNW trending topographic high transected by southerly flowing rivers. Several artisanal workers are panning the rivers for gold. A large laterite plateau lies to the north of the anomaly.
Mangabi Target
Gold in soil results reveal a 7.5 km x 500 m WNW trending anomaly at 30 ppb including a 1.5 km x 500 m 70 ppb anomaly. The anomaly is cut by southerly flowing drainages in the east, and north flowing rivers in the west. Although the western limit of this anomaly is suspected to be proximally transported, the highest values (530 ppb) within the anomaly overly a small hill. Numerous artisanal workers are panning for gold along the rivers.
Bamungo Target
Gold in soil results reveal a 4 km x 400 m WNW to NW trending 30 ppb anomaly including a 400 m x 400 m central zone with values greater than 100 ppb. The soil anomaly lies between two prominent hills and may represent proximally transported material.
Adjolia Target
Gold in soil results reveal a 3.8 km x 1.5 km apparent NS trending 30 ppb anomaly that crosscuts the stratigraphy and is possibly transported. Within the southern half of the 30 ppb anomaly a WNW trending zone with higher values of 80 - 130 ppb parallels a major thrust. This high-grade region is thought to be the source of the anomaly, as well as the center of the apparent NS trend.
Pande Target
Gold in soil results reveal that the Pande target is essentially two sub parallel NW trending
30 ppb anomalies. The anomalies crosscut the regional stratigraphy and do not appear to be related to the thrust package, as seen at the Adjolia target. The western anomaly measures 2.8 km x 400 m and is associated with a WNW trending package of banded iron formation ("BIF") and fine grained metasediments (siltstone), whilst the eastern anomaly of 4 km x 150 m traverses a major river (Nava River) and appears to be transported.
NGAYU BELT TARGETS
For details and reference of Figure 2 please refer to the press release of 3 February 2014.
KILO - RRL JV GEOLOGY
The JV property is underlain by Archaean rocks of the Ngayu and Isiro Greenstones Belts, as illustrated in Figures 1 and 3. The greenstone belts are comprised of Upper Kibalian metasedimentary rocks, BIF, mafic volcanics, and mafic to felsic intrusive rocks.
SOIL SAMPLING PROCEDURES
The regional soil samples were collected at a depth of approximately 50 cm, below the humus horizon, at 200 m intervals on lines 400 m apart. Sample sites were located by GPS and coordinates were recorded for each site. Approximately 2 kg of material present at the depth sampled was collected and placed into a plastic bag together with a pre-numbered sample tag and the bag was securely closed. Topographic, grain size, colour, old/artisanal workings, farms, villages, roads, outcrop and regolith data was recorded during sampling.
Sampling was carried out by up to seven sampling teams, each led by a Congolese geologist. Kilo provided logistical support as well as sampling teams comprised of technical and casual labour that reported to Randgold senior geologists.
QUALITY CONTROL AND ANALYTICAL PROCEDURES
Sample preparation consisted of sorting the samples into sequential numerical order, followed by drying (regional soil samples from the Ngayu Belt were dried at 90°C in the Adumbi kiln while the samples from Isiro were sundried), and sieving to -80 mesh (80 microns) Randgold delivered the sample pulps to the SGS Laboratory in Doko, DRC. Both SGS in Mwanza and Doko analyzed the samples using a 50 g charge by Fire Assay with Atomic Adsorption; SGS method, FA505.
Analytical quality control consisted of the insertion of commercial blank and standard reference material in every batch of samples submitted for analysis.
ABOUT THE KGL - RRL JV
The Kilo - RRL JV Project consisting of 12 Exploration Licenses, is held 75% by Kilo and 25% by Suez Holdings Ltd., the property vendors. Kilo has an agreement to buy out its 25% minority partner, Suez Holdings Ltd, which has a free carried interest through production for non-iron commodities. Buy out terms are an aggregate of 635 000 USD in cash and 356 000 shares over a 6 year period with initial no cash down (see press release dated December 6, 2012).
Pursuant to the Kilo - RRL JV Option Agreement for gold and associated minerals (see press release dated December 6, 2012) Randgold are required to finance all exploration on Kilo's licenses for which they will obtain incremental ownership based on milestone events. Randgold has up to five years to establish a pre feasibility study and a joint venture committee will manage the exploration program that will rely on knowledge and expertise from both companies.
The terms of the agreement are:
- RRL to earn 51% for the completion of a pre feasibility study ("PFS")
- KGL retains the right to maintain 49% post PFS
- RRL to earn 65% for the completion of a bankable feasibility study ("BFS") should KGL not contribute post PFS
- KGL option to convert to 1.5% royalty if diluted to 10% or less
- KGL maintains the exploration rights to all minerals not associated with gold
- PFS to be established within 5 years
- BFS to be established within 1 year after PFS, or such longer time to be agreed by the two parties
The optioned licences have been transferred to a DRC entity that is held as to 51% by RRL and 49% by Kilo. However, RRL must satisfy the aforementioned milestones prior to earning any interest.
ABOUT KILO
Kilo controls approximately 2,700 square kilometers of favourable Archaean Kibalian greenstone in the northeastern Democratic Republic of the Congo. The Company owns a 71.25% interest in the Somituri Project Exploitation Permits within the Ngayu Greenstone Belt immediately south of the Kilo - RRL JV property. The Imbo License, of the Somituri Project, hosts a number of colonial-era and subsequent artisanal gold deposits and prospects as well as un-tested geophysical and gold- in-soil anomalies.
An NI 43-101 compliant Inferred Mineral Resource at the Somituri Project, concluded that the Imbo License contains an estimated total of 1.67 million ounces of gold in three deposits. The Mineral Resource estimates, by Roscoe Postle Associates Inc ("RPA"), are based on an open pit scenario for the Adumbi deposit and an underground scenario at both the Kitenge and Manzako deposits (see Press Release dated January 30, 2014). Adumbi is hosted by chemical metasedimentatry rocks including BIF; Kitenge is hosted in clastic metasedimentary rocks; and Manzako is hosted in mafic volcanic rocks.
Hosted on Kilo property, optioned to RRL, is a 19² areakm covering Mt. Asongo with potential to host 750 to 1 500 million tonnes of 59% to 65% Fe as determined by RPA (see press release dated September 4, 2013). Kilo holds an 89% interest in the iron project and Suez retains an 11% interest. Rio Tinto Mining and Exploration holds a 0.80% production royalty over eight years on the iron.
Kilo's principal focus is to advance its projects from exploration through feasibility, project development, and ultimately to full production in a socially and environmentally responsible manner.
ABOUT RANDGOLD
Randgold Resources is a gold mining and exploration company operating in the prospective gold belts of west and central Africa. The company's strategy is to create real value for all its stakeholders through the discovery of multi-million ounce gold deposits and their development into profitable mines. Major discoveries to date include the 7.5 million ounce Morila deposit in southern Mali, the 7 million ounce Yalea deposit and the 5.5 million ounce Gounkoto deposit, both in western Mali, the 4 million ounce Tongon deposit in Cote d'Ivoire, and the 3 million ounce Massawa deposit in eastern Senegal.
Today Randgold operates five gold mines across Africa: Morila, Loulo, and Gounkoto in Mali, Tongon in Cote d'Ivoire, and Kibali in the DRC. The Massawa project in Senegal is at feasibility stage and exploration programmes are underway in Cote d'Ivoire, DRC, Mali, and Senegal.
QUALIFIED PERSON
The soil geochemical surveys disclosed in this press release were planned and supervised by RRL, the project operator. Technical data and figures disclosed in this press release were provided to Kilo by RRL. Paul Harbidge, BSc, MSc Geology, of Randgold Resources is the 'qualified person' (as such term is defined under National Instrument 43-101) and has reviewed the scientific and technical information and contained in this release.
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 Kilo'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.
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 associated with this release, please visit the following link: http://file.ccnmatthews.com/release/959474_figs.pdf