Kilo Goldmines Ltd. ("Kilo" or the "Company") is pleased to announce that Randgold Resources plc ("RRL") provided the following update on the 2 056.76 km² Kilo - Randgold joint venture ("JV") on the Ngayu and Isiro Archaean Greenstone Belts in Oriental Province, Democratic Republic of Congo today at the Indaba conference in Cape Town, South Africa.
- Regional soil sampling over the priority conceptual targets of the Ngayu belt is complete following the collection of 2414 samples over a 400m x 200m grid, covering a total of 210 km2 (Figure 1).
- The gold in soil results have been hand contoured and reveal three gold anomalies worthy of follow-up surface exploration work. The anomalies include Yambenda, Bonzuzu and Mbese.
- The most significant of these is Yambenda which measures 9.5km x 1.5km at 50ppb Au (including 3.0km x 1.5km at 100ppb and 1.5km x 1.5km at 100ppb). The gold anomaly coincides with the flanks of a prominent ridge truncated by the SW flowing Nepoko River. Geologically the anomaly overlies a volcano sedimentary package and appears to be spatially associated with a steeply dipping banded iron formation trending northwest (Figure 2).
- Soil sampling has commenced on the Isiro belt. A total of 364 samples have been taken at the time of report but no assay results have been received (Figure 3).
Alex van Hoeken, President and CEO of Kilo, today stated:
"We are extremely pleased with the professionalism and dedication of our joint venture partner, which has generated anomalies within four months of being on the ground. We look forward to infill results so that drilling could commence during the course of 2014. "
KILO - RRL JV GEOLOGY
The JV property is underlain with Archaean rocks of the Ngayu and Isiro Greenstones Belt, as illustrated on Figures 1 and 3. The greenstones belts are comprised of Upper Kabalian metasedimentary rocks, banded iron formation ("BIF"), iron (haematite), mafic volcanics as well as mafic to felsic intrusive rocks.
SOIL SAMPLING PROCEDURES
The soil samples were collected at a depth of approximately 50 cm, below the humus horizon and above the gravel layer, at 200 m intervals on lines 400 m apart. Sample sites were located by GPS and coordinates were recorded for each site. Approximately 5 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 who reported to Randgold senior geologists.
QUALITY CONTROL AND ANALYTICAL PROCEDURES
Sample preparation consisted of sorting the samples into sequential numerical order, followed by drying at 90°C, and sieving to -80 mesh (80 microns) at Kilo's Somituri Project exploration camp. Randgold delivered the sample pulps to the SGS Laboratory in Doko, DRC. SGS 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 Licences, 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 licences 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 which 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 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 keeps 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 parties
The optioned licences have been transferred into a DRC entity that is held as to 51% RRL and 49% Kilo, however RRL must satisfy abovementioned milestones prior to earning any interest.
ABOUT KILO
Kilo holds about 2,700 square kilometres 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 Licence, of the Somituri Project, hosts a number of colonial-era and subsequent artisanal gold deposits and prospects as well as un-tested geophysical gold-in-soil anomalies.
An NI 43-101 compliant Inferred Mineral Resource at the Somituri Project, concluded that the Imbo Licence contains an estimated total of 1.675 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 chemical metasedimentatry rocks including banded iron formation, Kitenge is hosted in clastic metasedimentary rocks and Manzako is hosted in mafic volcanic rocks.
Hosted on the Kilo property, optioned to RRL, is a 19 km² area covering Mt. Asongo with potential to host 750 to 1 500 million tonnes of 59 to 65% iron as determined by RPA (see press release dated September 4, 2013). Kilo holds an 89% interest in the Iron and Suez retains an 11% interest. Rio Tinto Mining and Exploration holds an 0.80% production royalty over eight years on the iron.
Kilo's principal focus is to advance its projects from exploration through feasibility to 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 the Cote d'Ivoire and the 3 million ounce Massawa deposit in eastern Senegal.
Today Randgold operates five gold mines: Morila, Loulo, and Gounkoto in Mali and Tongon in Cote d'Ivoire and Kibali in the Democratic Republic of Congo. 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. Stanley Robinson, M.Sc., P.Geo is the 'qualified person' (as such term is defined under National Instrument 43-101) of Kilo and has reviewed the scientific and technical information obtained from RRL and contained in this release, however, the data-base, soil sample co-ordinates and analytical certificates were neither reviewed or verified.
To view Figures 1-3, please visit the following link: http://media3.marketwire.com/docs/925456f.pdf
Source: http://www.kilogold.net/