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

Kilo Goldmines Ltd.

September 23, 2015 08:30 ET

Kilo Goldmines Announces Results of Stream Sediment Sampling Showing a 7km Mineralised Extension and Cancellation of Stock Options

TORONTO, ONTARIO--(Marketwired - Sept. 23, 2015) - Kilo Goldmines Ltd. (TSX VENTURE:KGL)(FRANKFURT:02K) ("Kilo" or the "Company") is pleased to report the results of a BLEG (Bulk Leach Extractable Gold) stream sediment sampling program on its Imbo licence (PE9691) within the Ngayu Greenstone Belt.

HIGHLIGHTS

  • BLEG sampling in the eastern half of the Imbo licence area, previously unexplored by Kilo, indicates a south-eastward extension of the Adumbi-Kitenge-Manzako mineralized trend over a strike of 7 km. The presence of gold mineralization is supported by rock chip sampling with values up to 15.1 g/t Au
  • Three stream catchments with anomalous gold and arsenic values, occur outside the area of known mineralization in the western part of the licence.

BLEG SAMPLING PROGRAM

Drainage catchments in the Imbo licence were defined using a 5 m colour elevation image and hydrography vector map produced from Landsat data by Photosat in Toronto. In addition, a 2 m topographic contour map, also generated by Photosat, was used where necessary. A total of 166 drainage catchments were defined with a total area of 113 km2, resulting in an average catchment size of 0.68 km2.

At each sampling site, 3 kg of the finest-grained sediment (mud) was collected from the top of the steam bed. A duplicate sample was taken at every fifth site for quality control purposes. The samples were thoroughly dried at the Adumbi base camp, and 1.1 kg of each sample sent to ALS Minerals in Ireland for analysis. Gold was analysed by cyanide leach bottle roll on 1 kg of sample. Arsenic, and a suite of 51 other elements, were determined by aqua regia digestion of 0.5 g of sample followed by ICP-MS and ICP-AES.

QUALITY CONTROL

Analytical quality was assessed by means of randomly inserted standard reference materials and blanks, all of which passed the Company's QC criteria. Sample representivity was assessed by comparing analyses of the original samples and 33 field duplicates; good correlations were obtained (Figure 1) indicating that the sampling technique produced reliable, representative samples with a low nugget effect.

ANALYTICAL RESULTS

BLEG results for gold and arsenic are shown in Figures 2 and 3 respectively, and Figure 4 presents the results of mapping and rock chip sampling to the east of the Imbo River. The following observations can be made:

  • There is a close spatial relationship between catchments with higher gold and arsenic values and the known mineralization at the Adumbi, Kitenge, Manzako and Vatican prospects. It is probable that mining during colonial times, followed by intense artisanal activity over several decades, has increased the amount of gold released into the associated drainages.
  • To the west of the Imbo River, anomalous values of 108 ppb Au (346 ppm As), 62 ppb Au (790 ppm As), and 324 ppb Au (234 ppm As) were returned for catchments 13, 21 and 48 respectively. These catchments are not covered by the current soil sampling grid, and warrant further investigation.
  • To the east of the Imbo River (an area not previously explored on the ground by Kilo) the Au and As data indicate a south-eastern extension of the Adumbi/Kitenge/Manzako mineralized zone, over a strike of about 7 km. Anomalous values in this area range up to 719 ppb Au and 140 ppb As, the highest values occurring in the Esio area where several colonial adits are located (Figure 4).
  • Rock chip samples, taken in the Esio area during the BLEG survey, assayed up to 15.1 g/t Au for quartz veins, 7.91 g/t Au for the host quartz-carbonate schist, and 6.39 g/t for altered banded iron formation (BIF) float.

PLANNED FOLLOW-UP WORK

The catchments with anomalous gold values described above will be further investigated, with priority given to the extension of the Adumbi-Kitenge-Manzako zone to the east of the Imbo River (Figures 2, 3 and 4). This work will have the objective of defining targets for drilling, and will initially comprise soil sampling on 160 m-spaced lines, mechanical auger drilling and trenching.

CANCELLATION OF STOCK OPTIONS

Kilo has cancelled 743,750 stock options previously granted to directors, management and consultants under the Employee Stock Option Plan. The cancelled options had expiry dates of July 7, 2016 or June 19, 2018 at exercise prices of $2.00 and $1.20 respectively.

About Kilo

Kilo Goldmines Ltd. (KGL) is a Canadian gold exploration company, listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. KGL holds exploitation and exploration licences covering some 3000 km2 of favourable Archaen Kabalian Greenstones (the Ngayu belt) in the northeast Democratic Republic of Congo an area historically referred to as the Kilo-Moto region, a historic gold-producing region.

Incorporated within these licences is:

- the Somituri Project (71.25% owned by KGL), comprising six non-contiguous licences (606 km2) held by KGL-Somituri SARL; and

- the KGL Isiro SARL Joint Venture (JV) with Randgold Resources Ltd (2056 km2), for gold and associated minerals only. The JV is managed by Randgold and financed by it to a pre-feasibility (PFS) for a 51% participation interest. Upon completion of the PFS, KGL can participate in 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.

Additionally:

- KGL has retained the rights to explore for and develop any iron ore resources (or other minerals) associated with the licences held by KGL Isiro SARL.

Qualified Person

Howard Fall, B.Sc., PhD, MAusIMM, QP (Geo) is the 'qualified person' (as such term is defined under National Instrument 43-101) of Kilo and has reviewed the scientific and technical information contained in this release.

DISCLAIMER

This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning Kilo's future plans and operations, including management's assessment Kilo's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond Kilo'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.

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.

To view Figure 1 - Original Samples v. Field Duplicates, please visit the following link: http://media3.marketwire.com/docs/1026114-F1.pdf

To view Figure 2 - Gold results for the Imbo Licence (PE9691) BLEG survey, please visit the following link: http://media3.marketwire.com/docs/1026114-F2.pdf

To view Figure 3 - Arsenic results for the Imbo Licence (PE9691) BLEG survey, please visit the following link: http://media3.marketwire.com/docs/1026114-F3.pdf

To view Figure 4 - Map of the Imbo Licence (PE9691), please visit the following link: http://media3.marketwire.com/docs/1026114-F4.pdf

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