Press Release
Apr 14, 2010 16:12 ET
Kilo Goldmines Update on Somituri Project Exploration
TORONTO, ONTARIO--(Marketwire - April 14, 2010) - Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE:KGL)(FRANKFURT:02K) is pleased to provide an update on its gold exploration activities on the Company's Somituri project in north-eastern Democratic Republic of Congo ("DRC"). The Company has a 70% interest in the DRC entity that holds the Somituri project Exploitation Permits. Kilo also announces the retention of the services of a new Canadian investor relations firm.
Somituri Drilling
The previously announced 10,000 metre diamond drilling program on the Somituri Project is currently underway with two diamond drill rigs on the past producing Adumbi gold mine (Figure 1 -see link below). In addition, a program of adit sampling, surface mapping and gridding is in progress. The objective is to evaluate the economic potential of the wall rocks of the exploited gold-bearing zone as well as explore beneath and along strike of the existing workings.
Drill-hole #1 on the Adumbi site was collared near an adit entrance, on an inclination of -50º and magnetic azimuth of 040º, parallel to the adit. This drill-hole, completed to a depth of 316.60 metres, intersected approximately 125 metres of pyrrhotite and/or pyrite mineralization hosted in quartz veins, altered and locally sheared banded iron formation ("BIF") as well as highly siliceous metasediments. This intersection is 150 metres down dip from the workings exposed in the adit. A second hole (hole #4) collared 160 metres to the northwest of hole #1 and a third hole (hole #3) collared 320 metres northwest of hole #1 are in progress. Hole #4 is a re-drill of an abandoned hole (hole #2). Currently holes #3 and #4 are intersecting a mineralized zone similar to that intersected in hole #1.
Upon completion of several additional drill holes, spaced at 160 metre intervals covering a portion of the strike length of the Adumbi mine workings, one drill will focus on exploring the past producing Kitenge gold mine, about 5 kilometres to the southeast, with several widely spaced drill holes.
Somituri Adit and Surface Sampling
Continuous horizontal channel sampling has been completed in four adits on the Adumbi target area. Adits #1 and #3 (200 metres northwest of Adit #1) and Adit #4 (50 metres southeast of Adit #1) all traverse the previously exploited gold bearing quartz vein. The hanging wall and footwall rocks, to the exploited quartz vein consists of altered and sheared siliceous metasediments, banded iron formation ("BIF") as well as additional quartz veins. Adit #2 is 160 metres SE of Adit #1 and it predominantly exposes the footwall rocks that include several previously exploited quartz veins. A preliminary interpretation indicates the dominant quartz vein targeted by the previous operator is not fully exposed in this adit. Adits #1, #2 and #3 are oriented northeast into the mountain; Adit #4 is oriented southwest between Adits #1 and #2 from the opposite side of the mountain.
A total of 155 samples (including QC samples) were collected over 183 metres in Adit #1, from Adit #2 87 samples were collected over 109.5 metres, from Adit #3 176 samples were collected over 177 metres and from Adit #4 126 samples were collected over 123 metres.
The entrances to additional adits have been recently located and are being cleared to provide access to sampling crews. Several trenches, one on the Adumbi target and one on the Kitenge target are in the process of being re-excavated for mapping and possibly sampling.
About the Somituri Project
The Somituri project consists of 8 Exploitation Permits covering some 606 square kilometres of the Ngayu Archaean Greenstone Belt, characterized by Upper Kibalian quartz veins, schists, metavolcanics, banded iron formation ("BIF") and metasedimentary rocks, situated in the Oriental Province of the DRC. Company geologists have traced the Adumbi gold bearing host rocks over a strike length of approximately two kilometres. The Kitenge gold bearing host rocks, oriented parallel to and approximately five hundred metres northeast of the Adumbi trend, have been traced over a strike length of about five kilometres. Fifteen hundred metres to the northeast of the Kitenge mine, is the former underground Manzako gold mine. The gold bearing host rocks of the Manzako mine have been mapped over a strike length exceeding two kilometres. The Manzako, Kitenge and Adumbi mines operated during the 1930s to 1958 and, according to historical records unverified by the Company, produced approximately 300,000 ounces of gold. Commercial alluvial gold and diamond exploitation was carried out in a number of sites within the approximately 4,500 square kilometre Ngayu Greenstone Belt from the early 1920s until the late 1950s. In addition, commercial hardrock gold exploitation occurred during the later half of this period. Currently, artisanal mining of alluvial and hardrock hosted gold is being carried out in selected areas.
The 2010 Kilo exploration program will focus primarily on evaluating the economic potential of the Exploitation Permit that hosts the past producing Manzako, Kitenge and Adumbi gold mines through sampling, mapping and diamond drilling. In addition, a soil sampling geochemical program coupled with mapping and prospecting will be carried out on the other 7 Exploitation Permits with the objective of delineating drill targets.
Drill-core samples from the first hole, as well as adit samples were submitted to ALS Chemex sample prep facility in Mwanza, Tanzania. The sample pulps are currently at the ALS Chemex full service facility in Johannesburg, South Africa for analysis. The analytical results are expected before the end of the month and will be announced once received by the Company.
Logistics and Camp Infrastructure
A sample preparation laboratory, purchased from ALS Chemex in Johannesburg, South Africa, is expected to arrive in Niania on or about the end of April. This in-country sample prep lab will streamline the logistics of sample handling, sample preparation, reject storage, out-of-country shipping and obtaining of analytical results. The sample prep lab will be managed and operated by ALS Chemex under an arm's length service agreement with Kilo.
Construction of the regional base camp at Niania and the on-site exploration camp at Adumbi are both underway.
Investor Relations Consultants Retained
Subject to regulatory approval, Kilo has engaged 360 Connect Investor Relations Corp. ("360 Connect"), a Toronto-based firm providing investor relations services to Canadian public companies in the resource sector. The principal of 360 Connect is Mr. Lance Hooper, the son of Mr. Peter Hooper, Kilo's Executive Chairman. The engagement of 360 Connect has been approved by the independent directors of Kilo. In addition to running traditional outreach programs to analysts and the investment community, 360 Connect will manage Kilo's web site, blog, and online presence across several social media channels to further broaden investor exposure. In consideration for the services to be provided, Kilo has agreed to pay 360 Connect from existing working capital a monthly fee of C$6,000. The initial term of the contract is 6 months and automatically renews for additional 6-month terms unless terminated by either party on 30 days notice prior to the end of any 6-month contract period. In addition, Kilo has granted to 360 Connect, subject to regulatory approval, stock options to acquire 300,000 common shares at a price of C$0.60 per share. One-quarter (75,000) of the options will vest after three months, and one-quarter of the balance (75,000) will vest after 6, 9 and 12 months, respectively. If the contract is terminated, all unvested options will be immediately cancelled and all vested options will be required to be exercised within 30 days of the effective termination date. 360 Connect holds no interest in Kilo or its securities other than the 300,000 stock options granted to it under the investor relations arrangement. AXINO AG ("AXINO") of Stuttgart, Germany will continue to represent Kilo in the European financial markets.
About Kilo
Kilo Goldmines Ltd. is a Canadian gold exploration company that is listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. The Company has over 16,000 square kilometers of favourable Archaean Kabalian greenstone in the Kilo-Moto area in the Democratic Republic of the Congo. Kilo's principal focus is to advance its projects from exploration through feasibility to project development and ultimately to full production in a socially and environmentally responsible manner.
The exploration program disclosed in this press release was planned and supervised by the Company's geological consultant Stanley Robinson. Stanley Robinson, M.Sc., P.Geo is also the 'qualified person' (as defined under National Instrument 43-101) of the Company who has reviewed the scientific and technical information contained in this release.
An overview map (Figure 1) illustrating the Adumbi, Kitenge and Manzako mines and the mapped strike extension of their respective host rocks, as well as a map of the Company's holdings in the DRC, can be viewed at: http://www.kilogold.net/downloads/pr14apr2010.pdf
This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning the Company's future plans and operations, including management's assessment of the Company's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond the Company'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.
For more information, please contact:
Kilo Goldmines Ltd.Peter Hooper
Executive Chairman
(416) 360-3415
[email protected]
www.kilogoldmines.com
