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

Kilo Goldmines Ltd.

February 05, 2015 16:30 ET

Kilo Goldmines Ltd.: Exploration Activities Update

TORONTO, ONTARIO--(Marketwired - Feb. 5, 2015) - Kilo Goldmines Ltd. (TSX VENTURE:KGL)(FRANKFURT:02K) ("Kilo" or the "Company") provides an update on its exploration activities on its Imbo licence (PE9691) within the Ngayu Greenstone Belt.

HIGHLIGHTS

  • Re-logging of Adumbi drill core and modelling of geology and mineralization has identified a high-grade zone of mineralization that can be traced across the entire length of the prospect and down dip.
  • This high-grade zone has an average true thickness of 4.91 metres @ 5.44g/t over 840 meters on strike and 275 meters down dip.
  • Re-logging of all core from the Kitenge, Manzako, Vatican, and Senegal prospects is complete.
  • Geological and mineralization modelling of the Kitenge, Manzako, Vatican, and Senegal prospects is on-going.
  • Adumbi West IP survey and geological mapping in progress.
  • Drilling scheduled to commence in March 2015.

Detailed geological and mineralization modelling, that resulted from the re-logging of Adumbi drill hole core, has identified a distinctive, high grade zone of mineralization. This zone of mineralization is associated with alteration and structural deformation that has completely destroyed the primary host lithological characteristics and is termed Replaced Rock Zone ("RP Zone") (Figure 1).

The RP Zone has been identified in the lower part of the Upper BIF package and in the Lower BIF package (See Figure 2). The Upper and Lower BIF packages are separated by a carbonaceous marker which the RP Zone transgresses both along strike and down dip (Figures 1 and 3). Lithologies and the RP Zone strike northwest-southeast and have a dip of 80° to the northeast. The RP Zone can be traced along strike for 840 meters and down dip to 275 meters below surface. The average true width and weighted average grade of all drillhole intersections of the RP Zone is 4.91 meters at 5.44 g/t Au. In the central 480 meter portion of the Adumbi prospect the average is 6.41 meters @ 6.25 g/t Au.

The RP Zone has several higher-grade shoots that plunge steeply to the northwest at 80° (Figure 4) and these will be targeted in the upcoming planned drill program. The orientation of the high grade RP shoots is similar to the fold axes mapped in the colonial underground workings.

In addition to the RP Zone, three other zones of mineralization have been defined:

  • Zone 1 is located towards the top of the Upper BIF,

  • Zone 2 is at the bottom of the Upper BIF package in the hangingwall of the Carbonaceous Marker, and

  • Zone 3 is in the Lower BIF package in the footwall of the Carbonaceous Marker (See Figures 1 and 2).

Final interpretation of the pole-dipole Induced Polarization (IP) orientation survey over the Adumbi Prospect has been received and the mineralization corresponds with well-developed chargeability and resistivity anomalies. An IP survey has been initiated over the Adumbi West target and it is on-going. This survey will be extended to cover targets such as the potential extension of the Adumbi prospect southeast of Canal, and cover soil geochemical anomalies between the Kitenge and Manzako prospects.

The data review exercise that has been reported in previous press releases is currently in progress for the Kitenge, Manzako, Vatican and Senegal prospects.

The company intends to initiate a detailed stream sediment sampling program to cover the entire Imbo licence in mid-February. This survey will comprise 166 sampling sites, with an average catchment area of 0.75 square kilometres.

Michael Skead, the Interim CEO of Kilo said: "The detailed geological review process that was initiated under new technical guidance has highlighted the potential of the Adumbi and neighbouring prospects which will be drill tested beginning in March, 2015. The review has resulted in a more complete understanding of the host lithology, controlling structure, and mineralization providing for better target selection. Targets such as Vatican and Senegal take on a greater focus as a result of these studies."

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 eight 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.

  • KGL has a minority interest in the Hajigak iron ore project in Afghanistan.

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.

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 the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/KGL%20Images.pdf.

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