Soil Anomalies Align with Geophysical
Fingerprint of Imperial Deposit, Supporting Near
Surface Exploration Targets
VANCOUVER, BC, March 9, 2021 /CNW/ - KORE Mining Ltd. (TSXV:
KORE) (OTCQX: KOREF) ("KORE" or the "Company") is
pleased to announce that, due to the success of its target
generation work, the Company has launched multiple new field
programs to systematically explore the Mesquite-Imperial-Picacho
gold district ("District"), part of the Imperial Gold
project ("Imperial"). The new programs will continue
to refine drill targets between KORE's Imperial deposit and the
operating Mesquite mine (Equinox Gold – TSX: EQX) for testing in
the second half of 2021 and extend the exploration model to the
east of Imperial towards the past producing Picacho mine.
Imperial Exploration Work Program
- Recent interpretation successfully proved "fingerprinting"
target strategy for making new discoveries in the District
-
- Geophysical "fingerprint" of Imperial present below recently
discovered soil anomalies
- Creates multiple high priority drill targets
- More targets expected as work continues along the District's
28-km trend
- Launched new exploration programs to expand claim coverage of
successful strategy, including:
-
- Detailed soil sampling around initial gold anomalies between
Mesquite and Imperial
- IP geophysics program to infill Mesquite to Imperial and
step-out east towards Picacho
- Commissioned satellite survey looking for additional signs of
surficial oxidation and other gold alteration types
- Results from these programs expected through H1 2021
Scott Trebilcock, CEO of KORE
states, "Our exploration strategy for making new discoveries at the
Imperial project is coming together nicely. The targeting
strategy is working well, and KORE has commenced new programs to
expand the strategy across priority areas at Imperial. Our
local Imperial County and Vancouver based teams are working hard to
explore as much ground as possible ahead of planned drilling in H2
2021. More targeting results are expecting in the coming
weeks and months including a first look at prospecting work on the
eastern, Imperial to Picacho, part of the District."
Imperial Target Interpretation Details
KORE is
pursuing value enhancement to the work completed in the 2020
Imperial preliminary economic assessment ("PEA") through resource
expansion and District-wide exploration of the 28 km gold trend
centered on Imperial. The three main District deposits -
Mesquite, Imperial and Picacho - were all discovered by outcrop,
while the remainder of the District is under alluvial cover and is
largely unexplored.
KORE is using Induced Polarization ("IP") geophysical
surveys to interpret controlling fault structures that host
mineralization in the District's deposits and look under the
alluvial cover. Soil sampling from dry riverbeds (arroyos) is
being used to further prioritize drill targets on the fault
structures. Figure 1 shows the Mesquite-Imperial-Picacho
District claims including geophysical interpretation and surface
sample results.
First pass IP was completed in H1 2020, first over the Imperial
deposit and then stepping out toward Mesquite. Having the
intact Imperial deposit to "tune" or "fingerprint" the geophysical
signatures, greatly enhances the confidence to target new
discoveries under the alluvium in the District. Details of
the work were released January 7,
2020 and April 29,
2020. Interpreted faults traced were traced
continuously from Mesquite to Imperial.
KORE followed up the IP geophysics in H2 2020 with mapping and
first pass soil sampling along the 28 km District trend to further
define discrete drill targets. Results from the
Imperial-Mesquite portion of the District were released
December 8, 2020. All samples
from that program are at the lab and further results are in the
coming weeks from the Mesquite-Picacho area.
Figure 2 and Figure 3 compare IP cross sections
below two District stream sediment gold anomalies to an IP cross
section of the Imperial deposit. The IP "fingerprint" of the
Imperial deposit geophysics and its alignment with surface gold
anomalies clearly matches the patterns of the two District stream
sediment gold anomalies. Both areas are therefore high
priority drill targets. KORE's exploration team is excited
about the success of this targeting strategy and expects to
generate more targets as the program continues.
KORE is currently permitting a 168-pad drill program via a Plan
of Operations ("PO") process with the Bureau of Land Management
local office. Permits are expected in mid-2021. Drill testing
of the highest priority targets is planned to start in H2 2021,
subject to permitting.
KORE is committed to operate within the stringent environmental
and labour standards of California. KORE plans to
concurrently reclaim drill pad locations and ensure measures are
taken to mitigate any impacts to biological and cultural
resources. KORE has designed the drill programs to maximize
the existing public road/trail network in the area so as to limit
any new disturbances, and the Company will be adjusting our drill
pad locations as needed to avoid any sensitive sites should any be
encountered.
About Imperial Gold Project
KORE owns 100% of the
Mesquite-Imperial-Picacho District which consists of 26,323 acres
on 1,007 claims capturing the entire 28-kilometer trend from the
operating Mesquite mine (Equinox Gold - TSX:EQX) to the closed
Picacho mine and including KORE's Imperial project. The
Imperial resource, which was the subject of a economically robust
2020 PEA released April 6, 2020, is
located roughly in the center of the District. KORE is
planning to move the Imperial PEA mine plan into permitting in
mid-2021 once drilling permits are received.
In the District, gold is hosted in local fault structures
related to a series of regional faults connecting the known
District deposits. Those three District deposits (Mesquite,
Imperial and Picacho) were discovered in exposed outcrops and from
placer workings. The rest of the District is covered by
alluvium and has never been systematically explored using modern
techniques.
Imperial is a structurally controlled intermediate sulfidation
epithermal gold deposit. The 100% oxide gold deposit is currently
defined at 2.44 kilometer long and up to 0.75 kilometer wide and is
open both along strike and downdip. It is hosted in a shallowly
southwest dipping, amphibolite grade metamorphic rock suite along a
west-northwest trending low-angle regional thrust fault system. The
thrust fault system controls the regional geometry of
mineralization. East-west striking, post-mineralization normal
faults control the property scale geometry of mineralization.
Geophysical characterization of the deposit and regional
controlling structures is an essential component of exploration for
additional resources.
Imperial has a mineral resource estimate with a positive
Preliminary Economic Assessment ("PEA"), released April 6, 2020, having the following
highlights:
- Robust economics: C$ 642 million
NPV5%* post-tax with 52% IRR at US$1,600 per ounce gold;
- Low capital intensity project with only US$ 143 million pre-production capital cost;
- 146,000 ounces gold per year over 8 years for 1.2 million
ounces total production; and
- Technically simple project: shallow open pit, run-of-mine heap
leach with existing infrastructure.
About KORE Mining
KORE is 100% owner of the Imperial
and Long Valley gold projects assets
in California. Both projects have positive economic
assessments put KORE on the path to up to 350,000 ounces of gold
production. KORE is supported by strategic investor Eric Sprott who owns 26% of KORE's basic
shares. KORE management and Board are aligned with
shareholders, owning an additional 38% of the basic shares
outstanding. KORE is actively developing its Imperial Gold
project and is aggressively exploring across its portfolio of
assets.
Further information on Imperial and KORE can be found on the
Company's website at www.koremining.com or by contacting us as
info@koremining.com or by telephone at (888) 407-5450.
On behalf of KORE Mining Ltd
"Scott
Trebilcock"
Chief Executive Officer
(888) 407-5450
Technical information with respect to the Imperial Gold Project
contained in this news release has been reviewed and approved
by Marc Leduc, P.Eng, who is KORE's COO and is the qualified
person under National Instrument 43-101 responsible for the
technical matters of this news release.
Neither the 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.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements relating to
the future operations of the Company and other statements that are
not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects", "intends", "indicates" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of the Company are forward-looking
statements. Forward-looking statements in this news release
include, but are not limited to, statements with respect to: final
results of future exploration work, including further mapping and
sampling and the timeline for completion, the results of the PEA,
including future opportunities, , the projected NPV, permit
timelines, and the ability to obtain the requisite permits,
the market and future price of and demand for gold, and the ongoing
ability to work cooperatively with stakeholders, including the all
levels of government. Such forward-looking statements, and any
assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our
business. Management believes that these assumptions are
reasonable. Forward looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information.
Such factors include, among others: risks related to exploration
and development activities at the Company's projects, and factors
relating to whether or not mineralization extraction will be
commercially viable; risks related to mining operations and the
hazards and risks normally encountered in the exploration,
development and production of minerals, such as unusual and
unexpected geological formations, rock falls, seismic activity,
flooding and other conditions involved in the extraction and
removal of materials; uncertainties regarding regulatory matters,
including obtaining permits and complying with laws and regulations
governing exploration, development, production, taxes, labour
standards, occupational health, waste disposal, toxic substances,
land use, environmental protection, site safety and other matters,
and the potential for existing laws and regulations to be amended
or more stringently implemented by the relevant authorities;
uncertainties regarding estimating mineral resources, which
estimates may require revision (either up or down) based on actual
production experience; risks relating to fluctuating metals prices
and the ability to operate the Company's projects at a profit in
the event of declining metals prices and the need to reassess
feasibility of a particular project that estimated resources will
be recovered or that they will be recovered at the rates estimated;
risks related to title to the Company's properties, including the
risk that the Company's title may be challenged or impugned by
third parties; the ability of the Company to access necessary
resources, including mining equipment and crews, on a timely basis
and at reasonable cost; competition within the mining industry for
the discovery and acquisition of properties from other mining
companies, many of which have greater financial, technical and
other resources than the Company, for, among other things, the
acquisition of mineral claims, leases and other mineral interests
as well as for the recruitment and retention of qualified employees
and other personnel; access to suitable infrastructure, such as
roads, energy and water supplies in the vicinity of the Company's
properties; and risks related to the stage of the Company's
development, including risks relating to limited financial
resources, limited availability of additional financing and
potential dilution to existing shareholders; reliance on its
management and key personnel; inability to obtain adequate or any
insurance; exposure to litigation or similar claims;
currently unprofitable operations; risks regarding the ability of
the Company and its management to manage growth; and potential
conflicts of interest.
In addition to the above summary, additional risks and
uncertainties are described in the "Risks" section of the Company's
management discussion and analysis for the year ended December 31, 2019 prepared as of April 27, 2020 available under the Company's
issuer profile on www.sedar.com.
Forward-looking statements contained herein are made as of the
date of this news release and the Company disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events or results, except as may be
required by applicable securities laws. There can be no assurance
that forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information.
There is no certainty that all or any part of the mineral
resource will be converted into mineral reserve. It is uncertain if
further exploration will allow improving the classification of the
Indicated or Inferred mineral resource. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
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SOURCE Kore Mining
