Overview
We hold a 75% and controlling interest in KGL-ERW SPRL, which intern has seceded 12 of its 23 exploration licenses to KWR-Iron SPRL, a company in which we have maintained a 75% shareholding.
The 12 exploration Licences (PR 2226, PR 2227, PR 2229, PR 2230, PR 2231, PR 2285, PR 2286, PR 2287, PR 2288, PR 2289, PR 2290, PR 2291) cover and area of 749 and 1307 km2 of the Ngayu and Isiro green stone belts respectively and form an important subset, of what is potentially a world class iron ore resource being delineated by Rio Tinto Plc.
KWR-Iron SPRL has entered into an agreement with Rio Tinto Plc (RTX), where by, RTX can earn up to a 75% interest in KWR-Iron SPRL, This earn in agreement has been split into three phases as detailed below:
- Phase 1 to 2013: USD 23 M (commitments and payments to Kilo) RTX 51%;
- Phase 2 to 2018: USD 33.6 M (commitments and payments to Kilo) RTX 64%, and
- Phase 3 to 2020: USD 26.4 M (commitments and payments to Kilo) RTX 75%.
Total (commitments and payments to Kilo): USD 83 M
It is important to note that:
- all fees and ancillary costs associated with the license are being paid for by RTX
- the JV agreement only covers iron ore and KGL via KWR-Iron SPRL reserve the right to exploit other resources contained within this property, but only where there is not a conflict of interest with Rio Tinto’s iron ore interests.
Exploration Results
| Drill Results, RioTinto (2011 and 2012) | ||||||||
| Drill hole | From (m) |
To (m) |
Interval (m) |
Lithological Domains |
Fe (%) |
Al2O3 (%) |
SiO2 (%) |
P (%) |
| ASON012 | 1.53 | 129.3 | 127.77 | HAE/ITR/ITP | 62.72 | 1.64 | 5.65 | 0.089 |
| - includes | 1.53 | 74.94 | 73.41 | HAE | 66.58 | 2.05 | 0.33 | 0.105 |
| - includes | 1.53 | 100.95 | 99.42 | HAE | 65.05 | 1.78 | 2.25 | 0.089 |
| ASON0013 | 39.9 | 65.47 | 25.57 | HAE | 66.69 | 0.79 | 2.45 | 0.056 |
| ASON014 | 0 | 96 | 96.00 | HAE/ITR | 60.97 | 2.37 | 5.53 | 0.124 |
| - includes | 9 | 73.95 | 64.95 | HAE | 64.11 | 2.18 | 1.24 | 0.119 |
| ASON0015 | 0 | 45.75 | 45.75 | HAE/BRM | 63.73 | 4.69 | 1.03 | 0.051 |
| ASON016 | 0 | 86.47 | 86.47 | HAE/ITR | 58.74 | 3.33 | 10.53 | |
| - includes | 106.14 | 127.64 | 21.5 | HAE | 67.76 | 0.37 | 2.30 | 0.03 |
| ASON017 | 0 | 99 | 99.00 | HAE/ITR/CNG | 64.19 | 2.29 | 4.40 | 0.028 |
| ASON018 | 2.0 | 18.2 | 16.20 | HAE | 66.17 | 2.56 | 0.37 | 0.08 |
| - includes | 38.86 | 48.10 | 9.24 | HAE | 62.90 | 3.80 | 3.95 | 0.05 |
| - includes | 66.73 | 77.30 | 10.57 | HAE | 62.34 | 3.42 | 4.96 | 0.05 |
| ASON019 | 7.87 | 81.72 | 73.85 | HAE/ITR | 62.13 | 2.96 | 5.06 | 0.078 |
Table Legend:
- HAE (Haematite); ITR (strongly enriched itabirite Itabirite); BRM (Breccia Mineralised); ITP (weakly enriched itabirite) and CNG (Canga)
- Drill holes ASON0013 and ASON0015 were abandoned in a high grade iron ore mineralised zone due to difficulties with drilling
Forward Work Plan
KGL will follow RioTinto Plc’s forward work programme which includes completion of widespread drilling over Asonga and associated high level studies into infrastructure, social and environmental issues.
Related Documents
Related Press Releases
| Kilo announce JV agreement with Randgold Resources Ltd (RRL) | |||
| Kilo announce drill assay results for KGL-Rio Tinto JV |