Kilo Goldmines Ltd.: Maiden Mineral Resource Estimates for the
Kitenge and Manzako Gold Deposits and Updated Mineral Resource
Estimate for the Adumbi Gold Deposit
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 total estimated Inferred Mineral Resource at the Somituri
Project contains an estimated 1.675 million ounces of gold (Moz)
(Table 1) at a grade of 2.5 g/t Au. The Mineral Resource estimates
are based on an open pit scenario at Adumbi and an underground
scenario at Kitenge and Manzako. Gold grades have been capped and
the resources at Adumbi have been constrained by a Whittle
pit.
- Based on a comparison using uncapped gold grades and no Whittle
constraint, the 2013 Adumbi resource estimate gold grades and
contained ounces have increased compared to the 2012 estimate. At a
cut-off grade of 1.0 g/t Au, these have increased from 2.0 g/t Au
to 2.4 g/t Au and from 1.61 Moz to 1.78 Moz, respectively.
- The updated 2013 Mineral Resource estimate for Adumbi is 19.11
Mt @ 2.2 g/t Au for a total of 1.362 Moz of gold.
- Maiden Inferred Mineral Resource estimates for the Kitenge and
Manzako deposits are 0.191 and 0.122 Moz respectively. The Kitenge
and Manzako drill hole spacing is currently too wide to determine
high grade plunge direction(s), hence the high grade shoots could
not be modelled separately and the gold grade was capped
universally at 50 g/t Au.
- There is excellent potential to expand the Inferred Mineral
Resources with more drilling. Greater than 50% of the mineralized
blocks at Kitenge and Manzako were not classified as Mineral
Resources in areas of wide spaced drilling. Additional drilling
could determine if part of the resource at either deposit could be
potentially be mined with a starter open pit.
- Gold mineralization at Adumbi, Kitenge and Manzako remains open
along strike and at depth.
- RPA has recommended infill drilling, increased QA/QC programs,
digital terrain surveys, in addition to the re-survey of drill
collars and historical workings on the Adumbi deposit in order to
potentially increase the resource size and upgrade Mineral
Resources from Inferred to Indicated status.
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:
- CIM definitions were followed for Mineral Resources.
- Mineral Resources were estimated at a cut-off grade of 0.9 g/t
Au for Adumbi, constrained by a Whittle pit shell with a processing
and G&A cost of US$30/t. A cut-off grade of 2.7 g/t Au was used
for Kitenge and Manzako based on potential underground mining
scenarios.
- Mineral Resources were estimated using a long-term gold price
of US$1,200 per ounce.
- A minimum mining width of two metres horizontal was used.
- A maximum of four metres internal waste was used.
- Adumbi bulk densities of 1.8 for oxide, 2.2 for transition, and
3.0 for sulphide materials were used.
- Kitenge and Manzako bulk densities of 1.7 for oxide, 2.2 for
transition, and 2.7 for sulphide materials were used.
- High gold assays were capped to 18.0 g/t Au for Adumbi, 50.0
g/t Au for Kitenge, and 50.0 g/t Au for Manzako prior to
compositing at two metre intervals.
- Estimated historical mining has been removed.
- Numbers may not add due to rounding.
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 Mineral Corporation 2012 block model is unconstrained and
has uncut gold grades.
- The RPA 2013 Block Model Estimate is reported as unconstrained
and with uncut gold grades for comparative purposes only.
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:
- RPA have indicated that:
- by geo-referencing the drill collars to a digital terrain
survey, as well as re-surveying historical workings, it is possible
that the Mineral Resource classification could be upgraded to the
Indicated category in some areas of the deposit; and
- infill and step out drilling may confirm the continuity of the
resource and assign grade and ounces to areas tapered due to the
inherent modelling parameters diminishing grade influence with
distance from the hole.
- A comparison between the 2012 and 2013 uncapped versions of the
Adumbi Inferred MRE show that in general, at a cut-off grade of 1
g/t Au or above, grade and total ounces have increased on average
over the cut-off ranges indicated by 18% and 20% respectively.
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:
- Open Pit Mining (Whittle Inputs for Adumbi):
- Block size: 8 m x 8 m x 8 m
- Pit slope angle: -45°
- In-situ bulk densities: 1.8 g/cm3 for oxide; 2.2 g/cm3 for
transition and 3.0 g/cm3 for sulphide
- Mining cost: 2.00 USD/t Waste; 2.50 USD/t Run-of-Mine
(RoM)
- Mining extraction: 95%
- Mining dilution: 5%
- Historic mining: Estimated and removed from block model
- Capped gold grade: 18 g/t
- Underground Mining (Manzako and Kitenge)1:
- Block size: 8 m x 8 m x 8 m
- Capped gold grade: 50 g/t prior to compositing at 2 m
intervals
- Mining cost: USD 60.00/t
- In-situ bulk densities: 1.7 g/cm3 for oxide; 2.2 g/cm3 for
transition and 2.7 g/cm3
- Historic mining: Estimated and removed from block model
- Lenses displayed: Resource blocks with a grade equal to or
greater than 2.7 g/t
- Process, General and Administration (G&A) Costs and Others:
- RoM throughput: 3.0 Mt/a (dry)
- Gold recovery: 90 %
- Process & G&A Cost: 30.00 USD/t
- Gold price: 1,200 USD/oz
- Royalty: 4.50 USD/oz
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:
- KGL Somituri SPRL (71.25% owned by Kilo), a holder of eight
non-contiguous exploitation licences (606 km2).
- KGL Isiro SARL (100 % owned by Kilo), a holder of 12
exploration licences covering some 2,056 km2. This project has been
joint ventured with Randgold Resources since December 6, 2012,
whereby Randgold can earn 51% by completing a Pre-Feasibility Study
on a discovery. (see press release December 06, 2012)
- Kilo retains the iron rights in the KGL Isiro permits, which
were previously in joint venture with Rio Tinto, which ended in
April 2013. RPA estimates that Mt Asonga may contain between 750 to
1,500 Mt of mineralised material, grading 59% Fe to 65% Fe focused
on a 19 km2 area on Mt Asonga.2 Furthermore, the deposit is
characterized by minimal overburden and intercepts up to 127 m with
an average overall seam thickness of 70 m. There are numerous other
targets with massive and laminated types of hematite mineralization
(see press release September 4, 2013)
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
Kilo Goldmines Ltd.Alex van HoekenChief Executive Officer (CEO)
& President+1 416 360
3406info@kilogoldmines.comwww.kilogoldmines.com
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