Kilo Goldmines Ltd.: Primary Targets Defined on Joint Venture Ground With
TORONTO, ONTARIO -- (Marketwired) -- 07/22/13 -- Kilo Goldmines Ltd.
("Kilo" or "KGL" or the "Company") (TSX VENTURE:KGL) (FRANKFURT:02K)
Kilo Goldmines Ltd ("Kilo or KGL") is pleased to provide the
following update on its joint venture with Randgold Resources Limited
-- Isiro greenstone belt: 8 targets
-- Ngayu greenstone belt: 6 targets
-- Geological features similar to those found at the 20 Moz Kibali gold
-- Located historical workings that are possibly related to colonial-era
-- Title transfer from a Rio Tinto-managed company to the Randgold / Kilo
Goldmines joint venture company completed
Generative geologists from Randgold have now completed their initial
reconnaissance and review of existing data on the extensive permit
area covering the joint venture project. The joint venture area hosts
various structurally complex features formed from tectonic forces
similar to those at the Kibali mine, particularly the presence of
cylindrical folds. Kibali is a 20 Moz gold mine in the northeast
Democratic Republic of the Congo ("DRC") operated by Randgold which
is scheduled to have its first gold pour in late 2013 (see Figure 1
below for relative location).
Based on information gathered to date by Randgold, 14 primary
exploration targets have been identified on the Isiro (8 targets) and
Ngayu (6 targets) greenstone belts (see Figures 2 and 3 below). These
targets are only preliminary and do not preclude additional targets
being identified from further exploration. The 14 aforementioned
targets will initially be covered by soil sampling, and will be
advanced dependent on results. Subsequent to the evaluation of these
primary targets, soil sampling will be extended to cover the entire
2000 km2 joint venture area.
A number of workings have also been found in the joint venture area
which may date from colonial era industrial mining, although no data
has been obtained to substantiate this view to date.
KGL is also pleased to announce that the transfer of the titles
covering the joint venture area from the company managed by Rio Tinto
Plc to the Randgold/Kilo Goldmines joint venture company was
completed on 12 July 2013. As a result of this transfer, Randgold
teams will now further advance ground exploration work.
KGL and Randgold have also restructured their joint venture to allow
for certain operational efficiencies. In order to facilitate
investment into the JV and accounting for such investment, Randgold
has been assigned 51% of the joint venture company, which will be
entirely managed by Randgold and financed by it through a
pre-feasibility study (PFS), with Kilo Goldmines representation on
the board and on the joint venture exploration committee. Upon
completion of the PFS, KGL can participate in its pro rata share of
funding or Randgold will increase its participation to 65% by
completing a Feasibility Study. Areas which may be deemed of no
interest to Randgold will be returned to KGL. KGL continues to retain
the rights to all minerals other than gold and silver within the
entire joint venture area.
Alex van Hoeken, President and CEO of KGL stated: "Our partner
Randgold has provided exceptionally skilled personnel to the joint
venture and has done an outstanding job in delineating the initial
targets. In particular we are very pleased by the excellent
cooperation between our companies, and we are highly encouraged that
geological features similar to Kibali have been discovered."
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 holds about
3,000 square kilometres 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 Company
owns a 71.25% interest in the DRC entity that holds the Somituri
Project Exploitation Permits.
Randgold Resources Limited is a gold mining and exploration company
operating in the prospective gold belts of west and central Africa.
The company's strategy is to create real value for all its
stakeholders through the discovery of multi-million ounce gold
deposits and their development into profitable mines.
Major discoveries to date include the 7.5 Moz Morila deposit in
southern Mali, the 7 Moz Yalea deposit and the 5.5 Moz Gounkoto
deposit, both in western Mali, the 4 Moz Tongon deposit in the Cote
d'Ivoire and the 3 Moz Massawa deposit in eastern Senegal. Today
Randgold operates four gold mines: Morila, Loulo, and Gounkoto in
Mali, and Tongon in Cote d'Ivoire. A fifth mine, Kibali in the
Democratic Republic of Congo, is currently being developled and first
gold is scheduled for the end of 2013. The Massawa project in Senegal
is at feasibility stage and exploration programmes are underway in
Cote d'Ivoire, DRC, Mali, and Senegal.
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.
To view "Figure 1. Map illustrating the location of the Isiro and
Ngayu greenstone belts relative to Randgold's Kibali mine", please
visit the following link:
To view "Figure 2. Map illustrating the Isiro greenstone belt and
primary exploration targets", please visit the following link:
To view "Figure 3. Map illustrating the northern Ngayu greenstone
belt and primary exploration target", please visit the following
Kilo Goldmines Ltd.
Alex Van Hoeken
President and CEO
+1 (416) 360 3415
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