Preliminary Discussions held with Potential
Strategic Partners
TORONTO, Jan. 31,
2022 /CNW/ - Loncor Gold Inc. ("Loncor" or the
"Company") (TSX: LN) (OTCQX: LONCF) (FSE: LO51) is pleased
to announce that it has filed on SEDAR a National Instrument 43-101
technical report relating to the Preliminary Economic Assessment
("PEA") of the Company's proposed open pit Adumbi gold
deposit within its 84.68%-owned Imbo Project in the Democratic Republic of the Congo (the
"DRC") Results of the Adumbi PEA were reported in the
Company's December 15, 2021 press
release.
Highlights from December 15,
2021 press release confirmed in Adumbi PEA Technical
Report:
- Average annual production for Adumbi of 303,000 ounces of gold
over a 10.3 mine life within proposed pit shell at an average feed
of 2.17 g/t Au over the proposed pit life.
- Pre-tax NPV (5% discount) of US$895
million and post-tax NPV of US$624
million for HEP Hybrid case at a US$1,600 gold price.
- Using a US$1,760 gold price,
post-tax NPV (5% discount) of US$879
million for HEP Hybrid case.
- Average total cash costs of US$852 per ounce over life of mine and AISC of
US$950 per ounce for HEP Hybrid
case.
- The Adumbi Indicated Mineral Resource of 1.88 million ounces of
gold (28.185 million tonnes grading 2.08 g/t Au) and Inferred
Mineral Resource of 1.78 million ounces of gold (20.828 million
tonnes grading 2.65 g/t Au) constrained within a US$1,600 per ounce optimised pit shell.
A copy of the Adumbi PEA technical report can be obtained from
SEDAR at www.sedar.com under Loncor's issuer profile.
In addition, the Company reports that it has been in preliminary
discussions with potential strategic partners with respect to
further development of the Company's Adumbi and Makapela gold
deposits (see below for information in respect of Makapela).
Project Opportunities/Upside
Based on the positive results of the Adumbi PEA, further work is
warranted at Adumbi to advance the project up the value curve by
completing follow up feasibility studies on the
project. A number of potential opportunities have
been identified for increasing mineral resources and enhancing the
economics and financial returns at Adumbi that include the
following:
- Increasing and Upgrading Mineral Resources at Adumbi and
within the Imbo Project.
There is excellent exploration
potential to further increase the mineral resources at Adumbi and
within the Imbo Project area. At Adumbi, the mineralized BIF
(Banded Ironstone Formation) host sequence increases in thickness
below the open pit shell and wide spaced drilling has already
intersected grades and thicknesses amenable to underground mining.
Further drilling is required to initially outline a
significant underground inferred mineral resource which can then be
combined with the open pit mineral resource so that studies can be
undertaken for a combined open pit and underground mining scenario
at Adumbi. Besides increasing the resource base, a combined
open pit/underground project could increase grade throughput and
reduce strip ratios with the higher grade, deeper mineral resources
being mined more economically by underground, which could increase
annual gold production and drive down operating costs.
Additional deposits and prospects occur close by to Adumbi
and have the potential to add mineral resources and feed for the
Adumbi mine development. Along trend from Adumbi, the Manzako
and Kitenge deposits remain open along strike and at depth and
further drilling is warranted on these two deposits, while further
along the structural trend to the southeast across the Imbo river
and within the Imbo Project, four prospects (Esio Wapi, Paradis,
Museveni and Mungo Iko) have been
outlined which require initial drilling.
- Additional Mineral Resources within the Ngayu Greenstone
Belt.
Additional feed for the Adumbi processing plant could
also come from Loncor's 100%-owned high grade Makapela deposit,
where Indicated Mineral Resources of 2.20 million tonnes grading
8.66 g/t Au (614,200 ounces of gold) and Inferred Mineral Resources
of 3.22 million tonnes grading 5.30 g/t Au (549,600 ounces of gold)
have been outlined to date with the high-grade material potentially
being able to be transported economically to Adumbi.
- Additional Geotechnical Investigations
Additional geotechnical investigations including drilling is
recommended to optimize and potentially steepen pit slopes
especially for the competent fresh BIF host rock which could reduce
the strip ratio and thereby lower mining costs at Adumbi.
- Further Metallurgical Testwork
Additional metallurgical testwork including additional flotation
and petrographic studies is recommended to confirm recoveries,
reagent consumptions and optimize flowsheet design.
- Potential to Reduce Pre-Production Capital Costs Through a
Hydroelectric Hybrid Power Agreement with Third Parties
As
described in the Adumbi PEA study, hydroelectric sites have already
been identified close to Adumbi and further studies are required to
optimize the power set for the operation. Loncor is already
in discussion with potential power suppliers with experience in the
DRC to project finance and build a hydroelectric facility at
Adumbi, and then have an offtake agreement with the Company to
supply power for the mining operation. Such an agreement
could improve the financial economics of the project.
Cautionary Statement:
The Adumbi PEA is preliminary
in nature and includes Inferred Mineral Resources in the open pit
outlines that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as Mineral Reserves. There is no certainty
that all the conclusions reached in the Adumbi PEA will be
realized. Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability.
Qualified Persons
Mr. Philemon
Bundo, Senior Vice President of Process at New SENET (Pty)
Ltd, and Mr. Daniel Bansah, Chairman
and Managing Director of Minecon Resources and Services Limited,
are the "qualified persons" (as such term is defined in National
Instrument 43-101) who are responsible for the technical
information disclosed in this press release. Mr. Bansah and
Mr. Bundo have reviewed and approved the contents of this press
release.
Technical Reports
Additional information with respect
to the Company's Adumbi deposit (and other properties of the
Company within its Imbo Project) is contained in the technical
report of New SENET (Pty) Ltd and Minecon Resources and Services
Limited dated December 15, 2021 and
entitled "NI 43-101 Preliminary Economic Assessment of the Adumbi
Deposit in the Democratic Republic of the
Congo". A copy of the said report can be obtained from
SEDAR at www.sedar.com.
Information with respect to the Company's Makapela Project, and
certain other properties of the Company in the Ngayu gold belt, is
contained in the technical report of Venmyn Rand (Pty) Ltd dated
May 29, 2012 and entitled "Updated
National Instrument 43-101 Independent Technical Report on the
Ngayu Gold Project, Orientale Province, Democratic Republic of the Congo". A
copy of the said report can be obtained from SEDAR at www.sedar.com
and EDGAR at www.sec.gov.
About Loncor Gold Inc.
Loncor is a
Canadian gold exploration company focussed on the Ngayu
Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo (the
"DRC"). The Loncor team has
over two decades of experience of operating in the
DRC. Loncor's growing resource base in
the Ngayu Belt currently comprises the Imbo
and Makapela Projects. At the Imbo
Project, the Adumbi deposit holds an indicated
mineral resource of 1.88 million ounces of gold (28.185
million tonnes grading 2.08 g/t
gold), and the Adumbi deposit and two
neighbouring deposits hold an inferred mineral resource of
2.090 million ounces of gold (22.508 million tonnes
grading 2.89 g/t Au), with
84.68% of these resources being attributable to
Loncor. Loncor has been carrying out a
drilling program at the Adumbi deposit with the
objective of outlining additional mineral resources.
The Makapela Project (which is 100%-owned by
Loncor and is located approximately 50 kilometres
from the Imbo Project) 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).
Additional information with respect to Loncor and its projects
can be found on Loncor's website at www.loncor.com
Cautionary Note to U.S. Investors
National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101") is a rule of the Canadian Securities
Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all
resource estimates contained in this press release have been
prepared in accordance with NI 43-101 and the Canadian Institute of
Mining, Metallurgy and Petroleum Classification System. These
standards differ from the requirements of the U.S. Securities and
Exchange Commission, and resource information contained in this
press release may not be comparable to similar information
disclosed by U.S. companies.
Cautionary Note Concerning Forward-Looking
Information
This press release contains
forward-looking information. All statements, other than
statements of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will
or may occur in the future (including, without limitation,
statements regarding estimates and/or assumptions in respect of
production, revenue, cash flow and costs, estimated project
economics, net present values, Adumbi project opportunities,
mineral resource estimates, potential underground mineral
resources, potential mineralization, potential gold discoveries,
drill targets, potential mineral resource increases, exploration
results, and future exploration and development plans) are
forward-looking information. This forward-looking information
reflects the current expectations or beliefs of the Company based
on information currently available to the Company.
Forward-looking information is subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
information, and even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company.
Factors that could cause actual results or events to differ
materially from current expectations include, among other things,
uncertainty of estimates of capital and operating costs, production
estimates and estimated economic return, the possibility that
actual circumstances will differ from the estimates and assumptions
used in the Adumbi PEA, the possibility that future exploration
(including drilling) or development results will not be
consistent with the Company's expectations, the possibility that
drilling or development programs will be delayed, activities of the
Company may be adversely impacted by the continued spread of
the widespread outbreak of respiratory illness caused by a novel
strain of the coronavirus
("COVID-19"), including the ability of the
Company to secure additional financing, risks related to the
exploration stage of the Company's properties, uncertainties
relating to the availability and costs of financing needed in the
future, failure to establish estimated mineral resources (the
Company's mineral resource figures are estimates and no assurances
can be given that the indicated levels of gold will be produced),
changes in world gold markets or equity markets, political
developments in the DRC, gold recoveries being less than those
indicated by the metallurgical testwork carried out to date (there
can be no assurance that gold recoveries in small scale laboratory
tests will be duplicated in large tests under on-site conditions or
during production), fluctuations in currency exchange rates,
inflation, changes to regulations affecting the Company's
activities, delays in obtaining or failure to obtain required
project approvals, the uncertainties involved in interpreting
drilling results and other geological data and the other risks
disclosed under the heading "Risk Factors" and elsewhere in the
Company's annual report on Form 20-F dated March 31, 2021 filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov. Forward-looking information speaks
only as of the date on which it is provided and, except as may be
required by applicable securities laws, the Company disclaims any
intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions
inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on
such information due to the inherent uncertainty therein.
Cautionary Note Concerning Mineral Resource
Estimates
The mineral resource figures referred to in
this press release are estimates and no assurances can be given
that the indicated levels of gold will be produced. Such estimates
are expressions of judgment based on knowledge, mining experience,
analysis of drilling results and industry practices. Valid
estimates made at a given time may significantly change when new
information becomes available. While the Company believes
that the mineral resource estimates included in this press release
are well established, by their nature mineral resource estimates
are imprecise and depend, to a certain extent, upon statistical
inferences which may ultimately prove unreliable. If such
estimates are inaccurate or are reduced in the future, this could
have a material adverse impact on the Company.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. There is no certainty that
mineral resources can be upgraded to mineral reserves through
continued exploration.
Due to the uncertainty that may be attached to inferred
mineral resources, it cannot be assumed that all or any part of an
inferred mineral resource will be upgraded to an indicated or
measured mineral resource as a result of continued
exploration. Confidence in the estimate is insufficient to
allow meaningful application of the technical and economic
parameters to enable an evaluation of economic viability worthy of
public disclosure (except in certain limited circumstances).
Inferred mineral resources are excluded from estimates forming the
basis of a feasibility study.
Cautionary Note Concerning Non-GAAP
Measures
This press release includes certain terms or
performance measures commonly used in the mining industry that are
not defined under International Financial Reporting Standards
("IFRS"), including cash costs and AISC (all-in sustaining costs)
per payable ounce of gold sold. Non-GAAP measures do not have
any standardized meaning prescribed under IFRS and, therefore, they
may not be comparable to similar measures employed by other
companies. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate performance. The
data presented is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
SOURCE Loncor Gold Inc.