TORONTO, ONTARIO--(Marketwire - Jan. 25, 2012) - Kilo Goldmines Ltd. (TSX VENTURE:KGL)(FRANKFURT:02K) ("Kilo" or the "Company") is pleased to announce encouraging results from five diamond drill holes drilled by Rio Tinto Mining and Exploration Limited ("Rio Tinto") on the Asonga Prospect of the Kilo / Rio Tinto iron ore joint venture in the Democratic Republic of Congo (DRC).
Highlights:
- High-grade intercepts, including 73.5 meters ("m") containing 66.6% Fe;
- Mineralized high grade intercepts of ~30-70m, with some interbanding with metasediments, occurring within wider intercepts that include interbands of lower grade (50-60%) enriched itabirite;
- Delterious content (phosphate, silica) is consistent with expectations, and;
- Results to date indicate the explored area has the potential to host direct shipping iron ore ("DSO")
The Asonga Prospect is located within exploration licences held 75 % by Kilo and is being explored by Rio Tinto pursuant to the Isiro joint venture between Kilo, Rio Tinto, and Suez Holdings Limited.
Details of the drilling results are listed in Table 1.
Table 1. Summary of Kilo / Rio Tinto JV Asonga Prospect Drill Results
| Drill Hole | From (m) | To (m) | Interval (m) |
Lithology | Fe (%) | Al2O3 (%) | SiO2 (%) | P (%) | |||||||||
| ASON012 | 1.53 | 129.30 | 127.77 | HAE/ITR/ITP | 62.72 | 1.64 | 5.65 | 0.089 | |||||||||
| includes | 1.53 | 74.94 | 73.41 | Haematite | 66.58 | 2.05 | 0.33 | 0.105 | |||||||||
| and | 1.53 | 100.95 | 99.42 | Haematite | 65.05 | 1.78 | 2.25 | 0.089 | |||||||||
| ASON0013 | 39.90 | 65.47 | 25.57 | Haematite | 66.69 | 0.79 | 2.45 | 0.056 | |||||||||
| ASON014 | 0.00 | 96.00 | 96.00 | HAE / ITR | 60.97 | 2.37 | 5.53 | 0.124 | |||||||||
| includes | 9.00 | 73.95 | 64.95 | Haematite | 64.11 | 2.18 | 1.24 | 0.119 | |||||||||
| ASON0015 | 0.00 | 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 | 0.06 | |||||||||
| and | 106.14 | 127.64 | 21.5 | Haematite | 67.76 | 0.37 | 2.3 | 0.03 | |||||||||
| Note 1: | abbreviation summary: HAE (Haematite) ITR (Itabirite) BRM (Breccia Mineralized) |
| Note 2: | Drill holes ASON0013 and ASON0015 were abandoned in high grade iron ore due to technical difficulties with drilling. |
The drill pattern was established to test the continuity of iron formations over a wide area centred on Mt. Asonga. The drill hole spacing varies from approximately 750m to 3,000m over a strike length of ~4.5 km and approximately 600m across strike. The four holes reported on were drilled vertically. Rio Tinto has advised that drilling will continue during 2012.
Alex van Hoeken, President & CEO, today commented "We are pleased that geophysics and drilling indicate that Kilo's licenses continue to show potential to justify further systematic exploration and have the potential to host a high grade iron ore project. Mt Asonga is part of a significant structural feature, which in combination with other areas, could potentially host a major resource."
The drill core was stored in plastic trays, cut on site with a diamond saw and samples of one half core were submitted to Ultra Trace Geoanalytical Laboratories in Perth, Australia for sample preparation and analysis by the X-Ray Diffraction ("XRF") method. Ultra Trace is ISO 17025 certified. Rio Tinto inserted commercial standards and blanks to industry standards.
The information presented in this press release on the Kilo / Rio Tinto JV was provided by Rio Tinto, the project manager and operator.
Update on Kilo's bid for the Hajigak Iron Ore deposit in Afghanistan
Further to the Company's press release dated November 28, 2011, Kilo has now been officially notified by the Afghanistan Ministry of Mines that the Company has been selected as the preferred bidder for concession block A of the Hajigak iron ore deposit located in central Afghanistan. The Company has been awarded the exclusive right to negotiate the mining rights for the concession block with the Afghan Ministry of Mines and negotiations are in progress.
Qualified Person
Stanley Robinson, M.Sc., P.Geo, a geological consultant to the Company, is a "qualified person" (as that term is defined under National Instrument 43-101) and has reviewed and approved the scientific and technical information contained in this release.
About Kilo
Kilo Goldmines Ltd. is a Canadian gold exploration company operating in the Democratic Republic of Congo (DRC). The Company has over 7,000 square km of favourable Archaean Kabalian greenstone in the Kilo-Moto area in north-eastern DRC. Kilo recently announced an inferred resource on the Adumbi Deposit of the Somituri Project of which the Company owns a 71.25% interest.
The Company is also working on a number of other prospective areas which contain historical workings in the same region. It also has a joint venture with Rio Tinto on potential iron ore licences in north-eastern DRC.
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.
Contact Information:
Alex van Hoeken
President and CEO
+1-416-360-3415
avh@kilogoldmines.com
Kilo Goldmines Ltd.
Suite 1200, 141 Adelaide Street West
Toronto, Ontario M5H 3L5
Website: www.kilogoldmines.com
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Twitter: www.twitter.com/kilogoldmines