Somituri Project, DRC
TORONTO, ONTARIO--(Marketwired - Jan. 30, 2014) - Kilo Goldmines Ltd. (TSX VENTURE:KGL)(FRANKFURT:02K) ("Kilo" or the "Company"), a gold exploration company with a focus on projects in the gold rich greenstone belts of the northeastern Democratic Republic of the Congo ("DRC"), today announced the results of its Canadian National Instrument ("NI") 43-101 Mineral Resource Estimate (MRE) for its 71.25% interest in the Somituri Project consisting of the Adumbi, Kitenge and Manzako gold deposits.
An independent updated MRE was prepared for the Adumbi deposit, and maiden Inferred Mineral Resources were estimated for the Kitenge and Manzako deposits by Canadian consulting firm Roscoe Postle Associates Inc ("RPA") geoscientists and engineers in London, United Kingdom and Toronto, Canada.
HIGHLIGHTS
The updated 2013 RPA estimate for Adumbi was based on a review of the Adumbi deposit including remodelling, grade capping and considering the CIM requirement for Mineral Resources to have "reasonable prospects for economic extraction". The RPA estimates for Kitenge and Manzako are based on drilling results that were available to November 15, 2013.
Table 1 shows the current Mineral Resource estimate for the Somituri Project's Imbo Licence.
Table 1: Mineral Resource Estimate for the Somituri Project's Imbo Licence, December 31, 2013 | |||||
Inferred Mineral Resources | |||||
Deposit | Mining Method |
Gold Cut-off Grade (g/t) |
Tonnes (Mt) |
Gold Grade (g/t) |
Contained Gold (Moz) |
Adumbi | Open Pit | 0.90 | 19.11 | 2.2 | 1.362 |
Kitenge | Underground | 2.70 | 0.91 | 6.6 | 0.191 |
Manzako | Underground | 2.70 | 0.77 | 5.0 | 0.122 |
Total | 20.78 | 2.5 | 1.675 |
The following notes apply to tables 1, 2, 4 and 5:
Commenting on today's independent MREs, Kilo's President and Chief Executive Officer Alex van Hoeken, said: "We are very pleased that not only has the RPA resource model on the Adumbi deposit shown a major improvement in ounces and gold grade when compared with the previous Inferred Mineral Resource Estimate, it also remains robust within newly applied constraining parameters as a first step towards economic modeling."
"Our updated Mineral Resource estimate reaffirms that the Adumbi deposit has significant gold mineralization, and potential remains to significantly increase both the gold grade and number of ounces with further geological understanding of the control of mineralization and systematic infill and step out drilling. In addition, the preliminary test work indicates that Adumbi is in most parts non-refractory with a significant gravity recoverable gold component, thus indicating a potentially economically extractable deposit."
"The maiden resource estimates at the Kitenge and Manzako deposits firmly establish the concept of being able to delineate additional gold resources within a short radius on the Imbo Licence which supports our team's exploration guideline for increasing resources to establish a multi-pit single plant mining operation. The high grade gold in these deposits is particularly encouraging. Moreover, the licence has many more untested targets as defined by historical colonial workings, artisanal workings, airborne geophysical and soil geochemical and surveys. All of these exploration targets warrant testing for additional resources in due course."
2013 MINERAL RESOURCE ESTIMATE FOR THE SOMITURI PROJECT'S IMBO LICENCE
In 2013, the Company appointed RPA to update the 2012 Inferred MRE on Adumbi and prepare a maiden MRE for the Manzako and Kitenge gold deposits.
The methodology applied and the results are presented in the following sections.
RESULTS
Based on the preliminary cost and revenue parameters applied in the preparation of the MRE, Adumbi is considered potentially economic at a cut-off grade of 0.90 g/t Au as an open-pit (1:7 strip ratio) deposit, whilst Kitenge and Manzako are considered potentially economic at a cut-off grade of 2.70 g/t Au by underground mining methods. Further exploration on Kitenge and Manzako may be able to delineate mineralization near surface and establish a starter surface pit.
The Inferred MRE for the Adumbi, Manzako and Kitenge deposits based on the aforementioned parameters and the combined resource estimate for the Imbo Licence as of December 31, 2013 are summarized and discussed in the following sections.
The Adumbi, Kitenge and Manzako gold deposits occur within a four kilometre radius of a central point on the 133 km2 Imbo Licence.
Adumbi
Table 2 illustrates Inferred MRE tonnes and grade subject as a function of cut-off grades and the effect of capping assayed gold values at 18 g/t Au for the Adumbi deposit. The reported Inferred MRE as it pertains to the 0.9 g/t Au cut-off grade is highlighted in bold.
Table 2: Inferred Mineral Resource Estimate for Adumbi, as a Function of Cut-off Grade | |||||
Cut-off (g/t Au) |
Inferred Mineral Resources - Capped at 18 g/t Au | Uncapped | |||
Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (Moz) |
Grade (g/t Au) |
Contained Gold (Moz) |
|
greater than or equal to 5.00 | 0.395 | 5.9 | 0.074 | 8.6 | 0.109 |
greater than or equal to 4.50 | 0.956 | 5.2 | 0.160 | 6.5 | 0.200 |
greater than or equal to 4.00 | 1.946 | 4.7 | 0.295 | 5.5 | 0.342 |
greater than or equal to 3.50 | 3.002 | 4.4 | 0.422 | 5.0 | 0.478 |
greater than or equal to 3.00 | 4.247 | 4.0 | 0.552 | 4.5 | 0.621 |
greater than or equal to 2.50 | 5.907 | 3.7 | 0.699 | 4.1 | 0.783 |
greater than or equal to 2.00 | 8.256 | 3.3 | 0.867 | 3.7 | 0.969 |
greater than or equal to 1.50 | 12.617 | 2.7 | 1.109 | 3.1 | 1.241 |
greater than or equal to 1.00 | 18.179 | 2.3 | 1.333 | 2.5 | 1.486 |
greater than or equal to 0.90 | 19.107 | 2.2 | 1.362 | 2.5 | 1.517 |
greater than or equal to 0.50 | 21.886 | 2.0 | 1.428 | 2.3 | 1.589 |
A comparison of the 2012 and 2013 Inferred MREs prepared by The Mineral Corporation of South Africa (2012) and RPA (2013) is presented in Table 3. The contained ounces and gold grade for the 2012 Adumbi estimate was based on uncapped grades and was unconstrained by a preliminary pit shell.
Table 3: Comparison of 2012 and 2013 Adumbi Block Models | ||||||
The Mineral Corporation (2012) | RPA (2013) | |||||
Cut-off (g/t Au) |
Tonnes (Mt) |
Gold (g/t) |
Contained Gold (Moz) |
Tonnes (Mt) |
Gold (g/t) |
Contained Gold (Moz) |
greater than or equal to 0.50 | 35.66 | 1.63 | 1.87 | 29.57 | 2.06 | 1.96 |
greater than or equal to 1.00 | 24.06 | 2.04 | 1.61 | 23.26 | 2.39 | 1.78 |
greater than or equal to 1.50 | 15.52 | 2.50 | 1.25 | 15.19 | 2.91 | 1.42 |
greater than or equal to 2.00 | 9.55 | 2.99 | 0.92 | 9.47 | 3.52 | 1.07 |
greater than or equal to 2.50 | 6.19 | 3.41 | 0.68 | 6.30 | 4.07 | 0.82 |
greater than or equal to 3.00 | 3.81 | 3.83 | 0.47 | 4.39 | 4.53 | 0.64 |
Notes:
The results of the RPA Whittle analysis, based on the Whittle inputs as outlined in the Methodology section and the calculated cut-off grade of 0.9 g/t Au is illustrated in Figure 2.
With respect to the Adumbi deposit, the following points should be noted:
Kitenge
Table 4 presents the Inferred MRE size and grade as a function of gold cut-off grade, with and without the application of a 50 g/t Au cap, for Kitenge.
The Inferred MRE for Kitenge has been prepared using a 50 g/t gold cap and a 2.7 g/t gold underground cut-off grade (see bold text in Table 4 and Figure 3).
Table 4: Inferred Mineral Resource Estimate for Kitenge, as a Function of Cut-off Grade | |||||
Cut-off (g/t Au) |
Inferred Mineral Resources - Capped at 50 g/t Au | Uncapped | |||
Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (Moz) |
Grade (g/t Au) |
Contained Gold (Moz) |
|
greater than or equal to 5.00 | 0.46 | 9.1 | 0.134 | 15.8 | 0.233 |
greater than or equal to 4.50 | 0.64 | 7.9 | 0.161 | 12.9 | 0.263 |
greater than or equal to 4.00 | 0.71 | 7.5 | 0.171 | 12.0 | 0.274 |
greater than or equal to 3.50 | 0.81 | 7.0 | 0.183 | 11.0 | 0.287 |
greater than or equal to 3.00 | 0.85 | 6.8 | 0.188 | 10.7 | 0.293 |
greater than or equal to 2.70 | 0.91 | 6.6 | 0.191 | 10.2 | 0.297 |
Manzako
Table 5 presents the Inferred MRE size and grade as a function of gold cut-off grade, with and without the application of a 50 g/t gold assay cap, for Manzako.
The Inferred MRE for Manzako has been prepared using a 50 g/t gold cap and a 2.7 g/t gold underground cut-off grade (see bold text in Table 5 and Figure 4).
Table 5: Inferred Mineral Resource Estimate for Manzako, as a Function of Cut-off Grade | |||||
Cut-off (g/t Au) |
Inferred Mineral Resources - Au Capped at 50 g/t | Uncapped | |||
Tonnes (Mt) |
Grade (g/t Au) |
Contained Gold (Moz) |
Grade (g/t Au) |
Contained Gold (Moz) |
|
greater than or equal to 5.00 | 0.271 | 7.4 | 0.064 | 17.5 | 0.153 |
greater than or equal to 4.50 | 0.339 | 6.8 | 0.075 | 15.5 | 0.169 |
greater than or equal to 4.00 | 0.398 | 6.5 | 0.083 | 14.0 | 0.180 |
greater than or equal to 3.50 | 0.547 | 5.7 | 0.101 | 11.5 | 0.203 |
greater than or equal to 3.00 | 0.691 | 5.2 | 0.116 | 9.9 | 0.219 |
greater than or equal to 2.70 | 0.766 | 5.0 | 0.122 | 9.2 | 0.227 |
Combined Inferred Mineral Resource Estimate for the Imbo Licence
Based on gold caps of 18 g/t Au and 50 g/t Au and cut-off grades of 0.9 g/t Au and 2.7 g/t Au for open cast and underground mining respectively, the combined Inferred MRE for the Imbo Licence is presented in Table 1.
It is important to note that all resources defined to date fall within a four kilometre radius of a defined central point on the Company's Imbo Licence, which is in alignment with the Company's business strategy of creating a central processing hub on this Licence.
Furthermore, the Imbo License hosts a number of historical and artisanal gold workings unrelated to the modeled resources. Exploration, will in part at least, focus on evaluating untested targets with the objective of delineating additional zones of gold mineralization.
METHODOLOGY
In accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definition standards (2010), RPA used a combination of Whittle® analysis and underground block mining grade cut-off calculations, to estimate open pit and underground Inferred Mineral Resources.
RPA generated wireframe models for each of the mineralized lenses, based on a 0.5 g/t gold cut-off that were used in geological and grade continuity studies in order to constrain the block model interpolation. Three-dimensional models of the Imbo lenses were constructed in a collaborative effort by Kilo and RPA. Mineral Resources were estimated by an Inverse Distance Cubed ("ID3") method. Historical mining was estimated and removed from the block models. A two metre minimum mining width and a maximum of four metres of internal waste was applied to all of the deposits.
The key parameters employed in estimating cut-off grade and Inferred Mineral Resources are summarised below:
1 More than 50% of the interpolated blocks were observed to be non-contiguous or not within 40 m of a mineralized drill hole and were hence, considered un-classifiable pursuant to CIM definitions and excluded from the MRE.
QUALITY ASSURANCE, QUALITY CONTROL AND DATA VERIFICATION:
HQ sized core (63 mm diameter core) was drilled through the transition zone from highly weathered and/or oxidized units to fresh unweathered competent rocks. The fresh rock was drilled with NQ size drill rods, producing 48 mm diameter core. Recoveries averaged greater than 95% within the mineralized zones.
Assaying of Kilo's samples was completed at ALS Minerals, an independent, ISO-credited laboratory in Johannesburg, South Africa, using fire assay fusion, followed by a gravimetric analysis procedure. Quality assurance and quality control was monitored and audited by Kilo with a quality-control program, which included standards, blanks, repeats and internal ALS Minerals quality-assurance procedures.
RPA recompiled the Somituri Project drill-hole database including all assay data. In RPA's opinion, the main limitations on verifying assay data are the lack of diamond drill core duplicate sampling as well as poor correlation within the Kilo inserted standards and laboratory standards.
QUALIFIED PERSONS
Disclosures of a scientific or technical nature in this release have been approved by Stanley Robinson, P. Geo., Exploration Manager of Kilo and a "Qualified Person" for the purpose of National Instrument 43-101.
The 2013 Mineral Resource estimate for the Somituri Project disclosed in this news release have been prepared by Ian Blakley, P.Geo., an employee of RPA and independent of Kilo. Mr. Blakley is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves, (November 2010). Mr. Blakley has read and approved the contents of this news release as it pertains to the disclosed mineral resource estimate.
RPA's complete NI 43-101 compliant technical report will be filed on SEDAR, as soon as practical and within 45 days of this press release.
ABOUT KILO
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 licences covering some ~2,700 km2 of iron and gold favourable Archean Kabalian Greenstones in the northeast Democratic Republic of the Congo.
Incorporated within this area is:
In addition, Kilo has a minority interest in the Hajigak iron ore project in Afghanistan.
2 Potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource.
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.
To view Figures 1, 2, 3 and 4 please click on the following link: http://media3.marketwire.com/docs/KGL0130.pdf
Contact Information: