Loncor Resources Inc. is pleased to announce that exploration ground work has commenced on priority targets resulting from the 'VTEM' geophysical airborne survey undertaken by Randgold Resources Limited earlier this year on Loncor's Ngayu project in northeastern Democratic Republic of the Congo.
Under the joint venture agreement signed in January 2016 (reference is made to Loncor's January 19, 2016 press release), Randgold will manage and fund exploration of the exploration permit areas comprising Loncor's Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Randgold. Subject to the DRC's free carried interest requirements, Randgold would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.
Processed data and final products from the 10,013 line kilometre helicopter borne electromagnetic 'VTEM' survey completed over the Ngayu belt by Geotech Airborne Limited of Aurora, Canada have been combined with all other geological layers to complete an updated integrated geological map of the belt and to refine and prioritize areas of interest ("AOIs"). The figure attached to this press release (see below) highlights the preliminary four significant AOIs generated using pre-existing data sets and the VTEM data. The four preliminary AOIs have several kilometre long mineralised strike potential focused on extension of known mineralized trends as well as areas of geochemical anomalies and structural complexity.
The four priority AOIs identified are summarized below:
- Priority 30 kilometre long Imva Fold structure
Extensive geochemical anomalies and several gold occurrences along major structures and complex deformation around intrusions.
- Yindi/Aguluku trend
20 kilometre long northwest extension of the Yindi/Aguluku mineralised trend with high soil and BLEG geochemical anomalies in the Yindi and Anguluku prospect areas. Younger Lindian cover may be obscuring any geochemical signature further along strike to the northwest. Structural complexity favourable for gold mineralised emplacement where the Banded Ironstone Formations ("BIFs") wrap around the western side of a regional intrusive complex.
- Adumbi trend
20 kilometre mineralised northwest extension of the Adumbi trend with moderate BLEG anomalism along the entire AOI, in places associated with similar lithological setting as the Adumbi deposit.
- Northern Ngayu
8 kilometre structural trend located in an area of complex folding of BIFs and carbonaceous shale, a localized area of high BLEG anomalism associated with a northwest trending fold axis, the setting and geochemical anomalism indicate the potential for fold plunging style mineralization.
The initial work program will have a two-pronged approach: a geological review of all existing targets; and ground follow-up of remotely and conceptually generated AOIs to generate additional new targets.
The belt scale exploration strategy of Randgold is to focus on the discovery of large high quality gold deposits by rapidly identifying and progressing targets that show the potential to meet these filters. Resources of greater than two million ounces of gold have already been identified within the Ngayu greenstone belt in the Makapela and Adumbi deposits and the objective is to further unlock the potential of the Ngayu greenstone belt for a world class discovery using cutting edge geophysics, geochemistry, structural interpretation and driven by an experienced and proven exploration team on the ground.
Certain parcels of land within the Ngayu project surrounding and including the Makapela and Yindi prospects have been retained by Loncor and do not form part of the joint venture with Randgold. Randgold shall have certain pre-emptive rights over these two areas. Loncor's Makapela prospect has an Indicated Mineral Resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an Inferred Mineral Resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au).
William R. Wilson, a director of Loncor and a "qualified person" as such term is defined in National Instrument 43-101, has reviewed and approved the technical information in this press release.