Kilo Goldmines Ltd.
TSX VENTURE : KGL
FRANKFURT : 02K

Kilo Goldmines Ltd.

June 28, 2011 08:00 ET

Kilo Announces Exploration Update of the Somituri Project, DRC

TORONTO, ONTARIO--(Marketwire - June 28, 2011) - Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE:KGL)(FRANKFURT:02K) is pleased to announce that an exploration program of trenching, soil sampling and drilling with two diamond drills is currently underway on selected targets on the Somituri Project in north-eastern Democratic Republic of Congo ("DRC"). The corporate objective in the short term is to improve the geological understanding of a number of gold bearing exploration targets on Exploitation Permit PE9691. The gold targets are all situated within a 10 kilometre radius of a possible central processing facility where material could be blended. In addition, exploration is being carried out on PE9692, 35 km to the west northwest of PE9691 and an initial evaluation of the gold potential on the other six licences of the Somituri project is planned.

PE9692

During 2011 the Company carried out an initial exploration program of geological mapping, rock sampling, trenching and sampling, on the southern portion of PE9692. Two areas, about 300 metres apart, are the focus of work where quartz veins are hosted in sheared sericite schist. The lithological units strike northwest and the sericite schist unit is flanked to the southwest by the BIF unit.

The Company plans to carry out a detailed soil sampling survey to define areas for trenching and ultimately diamond drilling. Historical workings, considered to be from the colonial-era, were observed within the vicinity.

PE9691

A compilation of the 2010 exploration data, coupled with historical data has, to date, defined seven areas that warrant further evaluation through exploration as illustrated on Figure 1. During 2010 some 1041 soil samples were collected from widely spaced lines. A number of the soil samples returned statistically anomalous values equal to, or greater than, 0.20 g/t Au. Only those soil sample sites with values equal to or greater than 200 ppb (0.20 g/t) are illustrated on Figure 1; gold values for samples that returned 300 ppb or higher (0.30 g/t) are indicated on Figure 1. A brief summary of the characteristics of each exploration target are presented below.

Kitenge Prospect

Gold bearing quartz veins hosted in tuffaceous metasediments on the Kitenge Prospect were exploited during the colonial era by open pit and underground methods. Diamond drilling of five holes in 2010 intersected high grade gold values hosted in narrow quartz veins. Gold-in-soil anomalies with values up to 0.60 g/t Au were delineated immediately to the south of the area drilled in 2010. Trench SKTR002 completed over a length of 206.8 metres in 2011, was excavated on the interpreted strike of the gold-in-soil anomaly; it intersected gold values over a combined width of 56 metres normal to the regional strike, from southeast to northwest, as follows;

From (m)To (m)Interval (m)Gold (g/t)
99.00107.208.201.15
118.10134.2016.100.55
162.90193.0032.100.70
Includes177.30193.0015.701.00

The Company has completed two diamond drill holes undercutting the gold values obtained in trench SKTR002. Both of these drill holes intersected shear zones typified by metasediments altered to sericite schist hosting finely disseminated pyrite. An artisanal mining site was also undercut by one of these diamond drill holes. A trench being excavated 80 metres to the northwest has intersected the sercite schist shear zone.

The sampled drill core has been dispatched to ALS Chemex for sample preparation and analysis. Assay results will be announced once the Company receives the data. Additional sites along the projected northwest strike have been prepared for diamond drilling. In addition, the gridded area is currently being expanded for soil sampling.

Adumbi Gold Deposit

The 2010 drilling on the Adumbi gold deposit delineated a gold zone with an NI43-101 compliant inferred resource estimate of 2.03 million ounces grading 1.37 g/t Au at a cut-off grade of 0.50 g/t Au (see Press Release dated March 2, 2010). The Adumbi gold deposit is hosted within banded iron formation ("BIF") and quartz veins with true widths that range from 20 to 140 metres wide. The BIF defines a prominent hill that rises some 130 metres above the base elevation of the surrounding area. The strike extensions of the Adumbi gold deposit remain open and it is open to depth beyond the limits of the NI43-101 compliant estimated resource.

To date, in 2011 the company has completed three diamond drill holes in selected areas on the Adumbi gold prospect; all of these drill holes intersected mineralized BIF and quartz veins. Assay results will be announced once the Company receives the data. Additional drilling is planned.

Canal Prospect

The Canal Prospect, hosted in BIF, is considered to be a southeast trending splay off of the Adumbi gold deposit. This prospect consists of gold hosted within BIF and quartz veins over an interpreted 1.5 kilometre strike length towards the southeast; a series of trenches excavated in 2011 confirms geological continuity over approximately 700 metres and additional trenches are planned. One diamond drill hole was collared on this prospect in 2010 and it returned 11.45 m grading 3.33 g/t Au.

The first 2011 diamond drill hole collared on the Canal Prospect intersected an alternating sequence of BIF and tuffaceous metasediments over a core length of about 30 metres followed by a quartz vein for 14 metres. The second 2011 drill hole intersected the BIF unit beneath the 2010 intersection. One diamond drill hole is in progress and additional drill holes will be collared at a spacing of 160 metre intervals along strike. Assay results will be announced once the Company receives the data.

Vatican Prospect

The Vatican Prospect is typified by a series of parallel gold bearing quartz veins over a strike length of about 1.0 kilometre and a width in the order of 250 metres hosted within tuffaceous metasediments. In addition thin intervals of BIF were observed within artisanal workings in close proximity to quartz veins. The Vatican Prospect, first exploited in the colonial-era, is currently the focus of intense artisanal exploitation whereby historical tailings are being reworked through the assistance of high pressure water.

One diamond drill hole has been completed, one is in progress and a third is planned; metasedimentary rocks with some quartz veining as well as narrow intervals of BIF have been intersected.

Manzako Prospect

Exploitation on the Manzako Prospect was carried out from surface and underground during the colonial era; the ore was processed together with ore from the Kitenge Prospect. The Manzako Prospect is characterized by a series of parallel gold bearing quartz veins hosted within tuffaceous metasediments and mafic volcanic tuffs over a 2.5 kilometre strike length and a width in the order of 500 metres. Gold-in-soil values up to 1.50 g/t Au were obtained. The 2010 diamond drilling intersected multiple gold bearing intervals in two widely spaced drill holes evaluating separate gold bearing quartz veins. Gold intersections in SMDD002 included 3.90m @ 2.63 g/t Au and 4.70m @ 9.37 g/t Au, and in SMDD003 2.40m @ 2.63 g/t Au and 6.50m @ 7.76 g/t Au.

Soil sampling is currently being carried out over the Manzako Prospect at a density of 20 metres x 160 metres.

Libreville – Monde Arabe Prospect

The Libreville – Monde Arabe Prospect is defined by an intermittent series of historical and current exploitation workings coupled with anomalous gold-in-soil anomalies over a northwest - southeast strike length in the order of 3 kilometres and a width of about 0.5 kilometres. The gold bearing quartz veins are hosted within tuffaceous metasediments and localized occurrences of sericite schist. Infill soil sampling will be carried out over this prospect to further define targets for trenching and follow-up diamond drilling.

Adumbi North Prospect

The Adumbi North Prospect, referenced as Bagbaie during the colonial era, was mined from surface and underground. The mined area consists of quartz veins hosted in sheared tuffaceous meatasediments over a strike length of about 500 metres. A gold-in-soil anomaly, about 500 metres wide oriented normal to strike with values up to 3.61 g/t Au was defined. The immediate exploration objective is to further evaluate this area through trenching, mapping and drilling.

Peter Hooper, Executive Chairman of Kilo, commenting on the 2011 exploration program stated; "Historical data coupled with results of the 2010 exploration activities has confirmed that a number of highly prospective Adumbi size targets may occur on PE9691. The main focus of the 2011 program will be to i) infill drill the Adumbi Deposit in the high grade areas to both increase the total resource and convert inferred ounces to indicate ounces, and ii) define new NI43-101 compliant resources bydrill testing each of the other high priority exploration prospects. In addition, surface work consisting of further soil sampling and trenching will be carried out beyond the defined limits of the known zones with the objective of delineating additional drill targets. The initial exploration success on PE9692 is particularly encouraging and the Company plans to carry out follow-up exploration as well as continue with preliminary exploration over selected areas of the remaining seven Exploitation Licences of the Somituri Project."

The size of each Prospect is summarized in Table 1; the Adumbi Gold Deposit is highlighted.

Table 1. Size of the Exploration Prospects.
TargetStrike Length
(km)
Width
(km)
Target Area
(Square km)
Adumbi North Prospect0.500.500.25
Adumbi Gold Deposit1.20.200.24
Canal Prospect1.50.100.15
Libreville – Monde Arabe Prospect3.00.752.25
Vatican Prospect1.00.750.75
Kitenge Prospect1.20.800.96
Manzako prospect2.50.501.25

About the Somituri Project

The Somituru project consists of eight Exploitation Licenses, valid until 2039, within the Ngayu Greenstone Belt, Oriental Province.

Historical exploitation on the Adumbi gold deposit was carried out from surface to the water table, or about 120 vertical metres and focused on a high-grade quartz vein situated in close proximity to the footwall limits of the 2010 delineated gold mineralization. Records from the colonial era, unverified by the Company, indicate that during the 1940s until its closure in 1958 the combined gold production from the Adumbiand Bagbaie (Adumbi North) gold mines produced about 200,000 ounces of gold from approximately 500,000 tonnes quartz vein ore that averaged 11 g/t gold.

According to historical records, unverified by the Company, the Kitenge and Manzako mines produced about 100,000 ounces of gold prior to about 1942.

QC and Analytical Procedures

Quality control of analytical results is monitored by the company with the insertion of commercial standards and blanks in every batch of samples submitted for analysis. For additional details the reader is referred to Kilo's previously announced (see May 4, 2010 press release) quality control and analytical procedures.

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 7,000 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.

Qualified Person

The drilling 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 that term is defined under National Instrument 43-101) of the Company who has reviewed the scientific and technical information contained in this release.

Figure 1, is a compilation map of the portion of PE9691 explored by the Company to date: http://www.kilogold.net/pr28jun2011

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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.

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