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

Kilo Goldmines Ltd.

January 26, 2011 10:41 ET

Kilo's Drilling Intersects 21.4 g/t Gold Over 0.95 Metres and 1.89 g/t Gold Over 8.15 Metres on the Kitenge Prospect, Somituri Project, DRC

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2011) - Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE:KGL)(FRANKFURT:02K) is pleased to announce partial results from the five diamond drill holes and one road channel sample completed on the Kitenge Prospect, part of the Company's Somituri Project in north-eastern Democratic Republic of Congo ("DRC"). 

Somituri – Kitenge Prospect

Five diamond drill-holes totaling 1,359.70 metres and a channel sample from a 139.00 metre road cut tested some 1,200 metre strike length of the open ended 4 kilometre long structure hosting the colonial era Kitenge gold mine. According to the historical records reviewed by the company the Kitenge mine operated from 1938 to 1955 and is reported to have produced approximately 65,000 ounces of gold from surface and underground exploitation. The gold intersections obtained in the Kilo drill holes and road cut, presented from northwest to southeast, are listed below and illustrated on Figure 1.

Drill Hole From (m) To (m) Interval (m)* Gold g/t
         
SKDD0001 Azimuth: 40 degrees magnetic Length: 256.60 metres
  0.00 2.00 2.00 0.39
  16.00 17.00 1.00 0.65
  30.00 36.00 6.00 2.46
  includes 35.00 36.00 1.00 12.40
  36.00 104.80 assay data not received
  106.30 117.30 1.00 2.18
  146.40 148.30 1.90 0.75
         
SKDD0003 Azimuth: 40 degrees magnetic Length: 369.60 metres
  0.00 30.50 assay data not received
  63.70 107.05 assay data not received
  133.50 136.80 3.30 6.71
  includes 134.65 135.60 0.95 21.40
  201.70 203.70 2.00 0.46
  353.80 369.50 assay data not received
         
SKDD0004 Azimuth: 40 degrees magnetic Length: 368.80 metres
  13.35 40.85 27.50 0.25
  includes 20.35 26.15 5.80 0.42
         
SKDD0004 (continued)        
  and 32.85 37.35 0.44 4.50
  65.30 68.30 3.00 0.68
  116.95 131.00 14.05 1.35
  includes 116.95 125.10 8.15 1.89
  and 122.85 123.45 0.60 9.77
         
SKDD0005 Azimuth: 40 degrees magnetic Length: 355.80 metres
  4.30 6.40 2.10 0.70
  42.40 148.80 assay data not received
  184.50 244.60 assay data not received
  245.30 252.30 7.00 0.33
  256.80 289.80 assay data not received
         
SKDD0002 Azimuth: 40 degrees magnetic Length: 364.70 metres
  0.00 4.60 4.60 0.97
  28.30 32.70 4.40 0.40
  38.50 43.80 5.30 2.15
  includes 43.10 43.80 0.70 9.72
  53.80 131.20 assay data not received
  184.50 187.70 3.20 0.86
  299.00 364.70 assay data not received
         
Road Channel 20.00 23.00 3.00 0.77
 
* The widths above are not true widths. True widths remain to be determined.

"The Kitenge Prospect drilling and road channel sampling has intersected gold mineralization over an open-ended strike length exceeding 1,000 metres" stated Peter Hooper, Executive Chairman, who added "particularly encouraging are the high-grade gold intercepts and the mapped strike length of this prospect. Additional drilling, to further evaluate the Kitenge Prospect on the Somituri Project, is warranted to determine its resource potential."

The true thicknesses of the gold bearing intervals are estimated at approximately 70 percent of the drill hole intersection intervals. A 0.30 g/t gold cut-off was used to calculate the intersections.

The Kitenge gold mineralization is associated with pyrite in quartz veins hosted in highly silicified clastic metasedimentary rocks. As illustrated on Figure 1, the Kitenge Prospect gold bearing structure is approximately 1.5 kilometres northwest of the Adumbi Prospect structure, and trends southeast for at least 4 kilometres. The Kitenge Prospect structure is separate from, and not geologically associated with the strike extension of the past producing Adumbi Prospect. Unlike Kitenge, the Adumbi Prospect gold is hosted in quartz veins and chemical metasedimentary rocks consisting predominantly of chert plus chert with magnetite, or banded iron formation ("BIF") as previously reported (see July 11, 2010 press release). Moreover, drilling to date indicates that the Kitenge gold zones are considerably narrower than the gold zones intersected on the Adumbi Prospect.

The objective of the Kitenge Prospect diamond drilling was to evaluate the potential of this historically mined gold bearing zone with a few widely spaced drill holes. A preliminary interpretation of the geology and assay data received to date confirms the presence of multiple parallel gold bearing zones over a strike length in excess of 1,200 metres hosted within a structure of unknown width. The historical mining on Kitenge is reported to have focused on narrow quartz veins from surface and underground; the Kilo drilling to date has identified the existence of a wider gold bearing zone. Currently the Company has insufficient data to correlate the various gold intersections and demonstrate strike continuity of the gold zones however the high grade gold intercepts obtained in each of diamond drill holes SKDD0001 to SKDD0004 inclusive coupled with the wider gold intersection in SKDD0004 is noteworthy. Management believes that additional drilling to further the interpretation and define the gold potential of the Kitenge Prospect is warranted.

All five diamond drill holes, SKDD0001 to SKDD0005 inclusive, were collared on a magnetic azimuth of 040 degrees and at an inclination of -50 degrees.

Diamond Drill Hole ("DDH") SKDD0001 was completed to a depth of 256.60 metres. DDH SADD0003 was collared 320 metres southeast of DDH SKDD0001 and completed to a depth of 369.60 metres. DDH SKDD0004 was collared 480 metres to the southeast of drill hole SADD0003 and completed to a depth of 368.80 metres. DDH SADD0005 was collared 100 metres behind and on the same section line as SADD0004 with the objective of exploring for parallel gold bearing zones; this DDH was completed to a depth of 355.80 metres. DDH SKDD0002 was collared 160 metres southeast of DDH SKDD0004 and completed to a depth of 364.70 metres. The road cut, some 200 metres southeast of DDH SKDD0002 was sampled on a magnetic azimuth of 020 degrees over a length of 139.00 metres. 

About the Somituri Project

Five diamond drill holes and one road cut have been completed on the past producing Kitenge gold mine and three diamond drill holes have been completed on the former Manzako gold mine. According to historical records, unverified by the Company, the Kitenge and Manzako mines produced about 100,000 ounces of gold until 1955. Kilo has completed one diamond drill hole on the Monde Arabe artisanal site which may be on the northwest strike extension of the Kitenge Prospect. In addition, trenching and deep soil sampling is being carried out.

Kilo has completed 31 diamond drill holes (including 6 abandoned holes), 13 trenches and sampled 4 adits on the Adumbi Prospect. Records from the colonial era, unverified by the Company, indicate that during the 1940s until its closure in 1958 the Adumbi gold mine produced about 200,000 ounces of gold from quartz vein ore that averaged 11 g/t gold. 

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 16,000 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, illustrating the Kitenge Prospect diamond drill holes, road cut and gold values can be viewed at: http://www.kilogold.net/pr26jan2011

Upcoming Events

Kilo will be attending the Mining Indaba 2011 Conference in Capetown, South Africa from February 7 to 10 (booth #101) and PDAC 2011 Conference in Toronto, Canada from March 6 to 9 (booth #2833). Kilo's management team is available to meet with investors at both events.

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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