Kilo Intersects Additional High Grade Targets at Kitenge: 3.75 M Grading 27.08 g/t Gold

Highlights

• 3.75 metres grading 27.08 g/t Au
• Depth below surface is only 125 metres
• This intersection is 60 metres vertically below hole #21 (5.80 metres grading 42.24 g/t Au)
• High grade zone at Kitenge now outlined over 700 metre strike length
• Deepest intercept to date in the high grade zone is only 145 metre from surface
• Kitenge target is now defined over 1,500 metre strike length, including the high grade zone
• Additional holes are pending receipt of assays in high grade zone
• The Kitenge Prospect gold bearing shear zone is open to the northwest and to the southeast as post mineralization fault off-set prospects, namely Senegal and Lion respectively

TORONTO, Jan. 23, 2013 (GLOBE NEWSWIRE) -- Kilo Goldmines Ltd. ("Kilo") (TSX VENTURE:KGL) (FRANKFURT:02K) is pleased to announce results from diamond drill hole SKDD0035 ("#35") totalling 293.20 m, an undercut hole of the previously announced drill hole SKDD0021 ("#21"), that intersected 5.80 m @ 42.24 g/t Au (see press release dated November 01, 2012).

The Kitenge Prospect is now defined over a 1500 m strike length and is one of several exploration Prospects that form part of Kilo's Somituri Project in northeastern Democratic Republic of Congo ("DRC"). Kitenge is approximate 4.0 km from Kilo's 1.87 Moz Adumbi inferred gold resource estimate and like Adumbi, falls within the Imbo Licence.

To date, 11 diamond drill holes delineate the high grade zone within the 1500 m long Kitenge structure, defined to shallow depths of ~ 65 m; the two deepest intercepts being 125 m and 145 m vertically below surface. The Kitenge structure remains open on strike and at depth.

The key intercept in hole #35 occurs at a downhole depth of 165.8 m and is followed by several other gold occurrences further down the hole that also correlate with similar intercepts in the footwall of hole #21, some 60 m above. The gold intercepts in both holes are well defined geologically as they are hosted within the Kitenge Shear Zone that is estimated to be 75 m wide based on visual observation of alteration and structure.  The Kitenge structure is considered to show many of the characteristics of mesothermal gold deposits, where zones of high grade mineralization occurs as defined "shoots" within a major structure and can exceed depths of 2 km below surface. (e.g. Red Lake, Ontario)

Alex van Hoeken, President and CEO of Kilo stated:

"These additional deeper gold intersections at Kitenge, provide some of the clearest evidence yet of the continuity of high grade gold values with depth.  These deeper, higher grade results support the need for additional drilling over the entire Kitenge structure.

We now have additional confidence that, not only is the structure open on strike, but the width and gold tenor is likely to increase with depth.  Kitenge is rapidly shaping up to be one the better prospects identified on the underexplored Imbo Licence and additional drilling is planned to delineate the extent of the high grade zone, possibly steeply plunging gold shoots that occur within the Kitenge main shear zone."

Gold intersections for drill hole SKDD0035 are listed in Table 1, whilst the location of the Kitenge holes drilled to date and the location of the Kitenge prospect relative to the Imbo licence boundaries are given in Figures 1 and 2 respectively (see attachment).   

Previously reported high grade gold intersections over a 700 m strike length of the 1500 m Kitenge Prospect, are listed by section line from southeast to northwest in Table 2 below (Press releases dated November 01, 2012 and January 14, 2012). 

Table notes:

• True thicknesses are estimated as 65 to 75 %, for those holes collared at -65 degrees and as 70 to 80% for those holes collared at -50 degrees, of core length intersections.

The Kitenge Shear Zone Target

Gold at Kitenge occurs with quartz + carbonate + pyrite ± pyrrhotite ± arsenopyrite ± chalcopyrite in a northwest-southeast oriented dominant shear zone hosting a continuous auriferous quartz vein, that dips about 80 degrees northeast, termed the Kitenge Shear Zone ("KSZ").  

Preliminary interpretation concludes that the KSZ is of the order of 75 m wide, bedding parallel to sub-parallel and characterized by highly sericitized and silicified fine grained clastic metasedimentary rocks.  In addition gold mineralization also occurs in the footwall and hangingwall rocks of the KSZ.

The KSZ continues northwest as the ~1500 m long Senegal Prospect, which in turn continues northwest as the Canal Prospect followed by the Adumbi gold deposit.  The structure continues northwest from the Adumbi gold deposit as the Adumbi West Prospect.  Each prospect has been left-laterally offset by post gold mineralization faults.  

The Senegal Prospect is flanked to the immediate northeast by a linear magnetic high.  Soil sampling on line 22720, some 800 m northwest of the most northerly Kitenge Prospect drill hole, (SKDD0017) returned a gold value of 69.6 g/t and a follow-up trench returned 2.30 m @ 4.56 g/t Au and 2.40 m @ 1.265 g/t Au.  Diamond drilling in 2012 returned 3.30 m @ 2.49 g/t Au from 14.50 m to 17.80 m, and 3.85 m @ 0.97 g/t Au from 82.20 m to 86.05 m in hole SSDD0001.  Thus, soil sampling, trenching and drilling results, clearly indicate that the Kitenge Prospect continues northwest as the Senegal Prospect and these Prospects are open on strike and to depth.
 
Drill hole SSDD0001 was collared on a magnetic azimuth of 220 degrees and drilled on an inclination of -50 degrees for 205.74 m.

Towards the southeast from Kitenge drill hole SKDD0022, gold mineralization was intersected on 5 section lines spaced at 160 m intervals.  Drill holes on section line 24640 intersected 16.70 m @ 1.32 g/t Au (SKDD0011) and 14.05 m @ 1.35 g/t Au indicating that the KSZ also hosts gold mineralization in excess of 10 m (true) width.  Further southeast the KSZ is left laterally fault off-set towards the northeast and the gold bearing shear zone continues southeast as the Lion Prospect.

About the Somituri Project

The Somituri Project comprises eight Exploitation Licences, covering 606 km2 of the Archaen Ngayu Greenstone belt in the northeastern Democratic Republic of Congo.

According to historical records, unverified by Kilo, the Kitenge and Manzako mines produced approximately 100 000 oz of gold to 1955, whilst the Adumbi gold mine produced approximately  200 000 oz of gold from quartz vein ore that averaged 11 g/t gold during the 1940s until its closure in 1959.

The Mineral Corporation (April 2012), based in Johannesburg South Africa, calculated an NI 43-101 compliant inferred gold resource estimate of 1.87 Moz grading 1.63 g/t Au using a 0.50 g/t Au cut-off for the Adumbi Prospect.

Quality Control and Analytical Procedures

The drill core was sawn in half with a diamond saw and a half core of each sample was placed into plastic bags and stapled shut.  Commercial standards and blanks were inserted in every batch of samples submitted for analysis in accordance with industry practice.  Sample preparation was carried out at the Kilo on-site laboratory managed by ALS Chemex.  Sample pulps were shipped from the DRC to ALS Chemex in Johannesburg, South Africa by commercial courier.  Gold analysis was determined on a 50 g charge by the Fire Assay with Atomic Absorption finish method.  ALS Chemex is accredited to international standards.

Quality control of analytical results is monitored by Kilo with the insertion of commercial standards and blanks in every batch of samples submitted for analysis.  For additional details the reader is referred to Kilo's previously announced (see May 4, 2010 press release) quality control and analytical procedures.

About Kilo

Kilo Goldmines Ltd. (Kilo) 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'.  Kilo holds exploitation and exploration licenses covering approximately 3000 km2 of favourable Archaean Kabalian greenstone in the Kilo-Moto area in the Democratic Republic of the Congo (DRC).

Kilo owns a 71.25% interest in KGL-Somituri SPRL ("Somituri Project") the registered holder of mineral rights on eight non-contiguous Exploitation Licences valid until 2039 covering 606 km2 which includes the Imbo licence (122 km2).  Kilo has defined a 1.87 Moz, NI 43-101 compliant inferred gold resource estimate (1.63 g/t Au, at a cut-off grade of 0.5 g/t) on the Adumbi Prospect (April 2012) of the Imbo licence.

The Kilo Goldmines logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13161

For further information, please contact:

Alex van Hoeken
Chief Executive Officer (CEO) & President
Tel:    +1 416 360 3406
Email:    info@kilogoldmines.com
Website: www.kilogoldmines.com
 
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.

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