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TSXV – KORE
WKN: 875742
ISIN : CA2986551018
VANCOUVER, Nov. 6, 2018 /CNW/ - KORE Mining Ltd. is
pleased to provide its first operational update on the Imperial and Long Valley Projects in
California.
"Through a disciplined approach KORE has acquired quality
projects, compiled extensive historic data and has discovered
prospective new targets," said Adrian
Rothwell, KORE's President & CEO.
KORE is a development stage company that offers exposure to
precious metals exploration and development in North America. The Company is focused on the
development of its Californian gold projects and growth through
discovery on its North American portfolio.
Highlights
- Imperial Project
-
- Advisors complete positive permitting feasibility analysis on
the Imperial Project;
- Imperial is located 15km from
Equinox Gold's (TSXV:EQX) operating Mesquite Mine;
- Long Valley
-
- Data compilation completed on historic results and drill
targets;
- Drill program planned targeting resource expansion. Potential
for expansion laterally and at depth with consistent grades in
oxide;
- New Website – Much more information on KORE's website at
www.koremining.com.
Operational Update
Imperial
KORE owns a 100% interest in the Imperial gold development project
("Imperial"), located on Bureau of Land Management (BLM)
administered land in a current mining district of Imperial County, California, USA. Imperial is approximately 15km SSE of the
operating Mesquite Mine recently acquired by Equinox Gold (TWXV:
EQX) for US$158 million.
Imperial boasts superb access
and excellent infrastructure for potential mining operations. The
Company is working toward permitting of an open-pit, oxide precious
metal mining operation using heap-leach processes.
With an historic Environmental Impact Study/Report ("EIS/EIR")
completed in compliance with then-existing US Federal and
California environmental
regulations the project inherits the analysis and design of a mine
plan that meets Bureau of Land Management and California Surface
Mining And Reclamation Act ("SMARA") requirements. KORE is
advancing and updating background permit studies to meet current
regulations and considers the project to have excellent prospects
for near-term success as a result of extensive and thorough
consultation to date. Previously owned by Glamis Gold, the project underwent prior
environmental review pursuant to the California Environmental
Quality Act (CEQA) and NEPA in 1998.
Through a permitting feasibility study completed by the
Company's representatives in 2018, management and their
professional advisors have concluded that acquiring the required
permits is highly feasible.
KORE has adopted a collaborative, inclusive and mutual-benefit
driven approach to engagement to build and strengthen stakeholder
relationships and looks forward to permitting success on this
low-impact, high-return project.
Long Valley
Our 100% owned Long Valley Project in California, USA, represents a gold development
opportunity with a current NI 43-101 resource. The project displays
a large gold resource, with superb mining access, and excellent
metallurgical extraction. Long Valley is one of the few large
development-ready precious metals resources in California, a jurisdiction with clear
permitting processes and recent mine startups.
Table 1: Current Long Valley
resources1
|
Size
|
Grade
|
Au
|
Source2
|
Au
Cutoff
|
|
(tonnes)
|
(g/t)
|
(oz)
|
|
(g/t)
|
Measured
|
27,469,000
|
0.55
|
481,000
|
2018
43-101
|
0.17
|
Indicated
|
39,332,000
|
0.61
|
766,000
|
2018
43-101
|
0.17
|
TOTAL
M&I
|
66,801,000
|
0.58
|
1,247,000
|
|
|
|
|
|
|
|
|
Inferred3
|
23,560,000
|
0.58
|
486,000
|
2018
43-101
|
0.17
|
|
The mineral resources
in this news release were estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral
Resources and Reserves, Definitions and Guidelines prepared by the
CIM Standing Committee on Reserve Definitions and adopted by CIM
Council. Long Valley Mineral Resource Estimation Parameters: a)
Grade estimation is based on assay samples composited to 10ft
intervals. Grade capping thresholds were determined following a
detailed statistical analysis of the data for the entire
mineralized domains and varied from 0.029 to 0.452 ounces per ton
(opt) gold (Au). Capped Au grade in the MDA model was 0.25opt. b)
Resource model grade blocks were estimated using Surpac® modeling
software based on a traditional wireframe interpretation
constructed from a sectional interpretation of drilling data. c)
The database for the Long Valley model consisted of 896 holes,
including 20 core holes, totalling 268,275 feet of drilling. A
total of 47,792 analyses were considered for use in the resource
estimate. d) The modelled gold mineralized zone is contained within
the Hilton Creek South and Southeast zones with a total length of
7,748ft and widths ranging from 500ft to 1,500ft in a generally
flat lying tabular body from 50 to 200ft thickness e) A bulk
density value of 0.065 ton per cubic foot was used and derived from
7 core holes consisting of 12 samples collected by Royal Gold, 10
core holes consisting of 93 samples collected by Amax and 10
samples by MDA. f) Mineral resources were reported within an
optimized pit shell using a gold price of US$1,500/oz with a heap
recovery of 80% less than 150ft from surface and 90% mill recovery
between 150ft and 200ft. g) Crushing and heap leach costs used were
US$1.40/ton & US$1.80/ton, respectively for heap leach
operations and US$8.60/ton processed for Sulfide Plant operations.
G&A was US$0.63/ton. Open pit mining costs were US$1.70/ton
mined with open pit slopes of 45 degrees.
|
___________________________
|
1
|
Mineral
Resources are not mineral Reserves and do not have demonstrated
economic viability. There is no certainty that all or any part of
the mineral Resource will be converted into mineral Reserves. The
estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
|
2
|
Long Valley
Project: "Technical Report and Resource Estimate for the Long
Valley Project, Mono County, California" with an effective date of
April 25, 2018, prepared for the Company by Neil Prenn, P.E. and
Steven I. Weiss, C.P.G. of Mine Development Associates in
accordance with NI 43-101. Cutoff grade 0.17gpt oxide, 0.21gpt
transition and sulfide.
|
3
|
The quantity
and grade of reported Inferred resources in this estimation are
uncertain in nature and there has been insufficient exploration to
define these Inferred resources as an Indicated or Measured mineral
resource and it is uncertain if further exploration will result in
upgrading them to an Indicated or Measured mineral resource
category.
|
Long Valley hosts a shallow and large near-surface gold-silver
deposit 2.5 km long that is exposed on surface and provides
excellent mining access. The gold deposit boasts a low strip ratio
(1:1), broadly disseminated zones, and excellent oxide metallurgy
averaging 80%. Gold-silver mineralization shows good continuity and
includes zones of higher grade above 3.4 g/t Au.
Kore plans to upgrade and expand the resource through additional
drilling, produce a geological model of the deposit, and advance
engineering and environmental studies toward production permitting.
Funds will be used to assess environmental impacts of a
small-disturbance drill program.
Kore recently completed an updated, pit-optimized resource
estimate that increased gold ounces in the measured and indicated
categories.4 We anticipate further resource expansion
from our upcoming drill program. The deposit shows potential for
expansion both laterally and at depth with consistent grades. The
potential for deeper higher-grade feeder zones along the
mineralization-controlling fault offers a compelling expansion
target.
The Long Valley gold development project covers 728 ha in 95
contiguous unpatented mineral claims. The project was acquired from
Vista Gold Corp. and was explored by Royal
Gold in the 1980s and 1990s.
In 2017 Kore completed a ground-based magnetotelluric
(MT) survey to better understand the characteristics of the
epithermal mineralization at Long Valley. Interpretation of the MT
survey combined with mapping and historical drilling will aid in
the precision of the drilling targets for our next program.
The next drill program will provide infill assays, material for
metallurgical testing, improved geologic information, density data,
and locations for groundwater monitoring wells. This information
will result in an expanded resource and geologic model of the
deposit and a new Preliminary Economic Assessment. These will
facilitate advancing engineering and environmental studies towards
permitting.
We will continue exploration in 2019 when we anticipate
completion of a PEA and updated resource model.
"Our California development projects boast simple
production profiles with great access to existing
infrastructure," said Adrian
Rothwell, KORE's President & CEO.
About KORE
KORE is a development stage company that offers exposure to
precious metals exploration and development in North America, with a corporate strategy
focused on the advancement of its California development and British Columbia advanced exploration stage
projects.
California,
USA
KORE, indirectly through wholly-owned subsidiaries, owns 100%
interests in the Imperial and Long
Valley gold development projects, located in California, USA (together, the
"Projects"). A Qualified Person has not done sufficient work
to classify the historical estimates as current resources and KORE
is not treating the historical estimates as current resources.
Significant data compilation, re-drilling, re-sampling and data
verification may be required by a Qualified Person before the
historical estimates at the Projects can be classified as current
resources.
Each of the Projects has the potential to host near-surface,
open pit, heap leachable gold deposits. The Projects combine low
technical risk, high advancement potential and a low initial
cost.
___________________________
|
4
|
Technical Report and
Resource Estimated for the Long Valley Project, Mono County,
California, USA: April 5, 2018, by Niel Prenn of Mine Development
Associates. Mineral resources are not mineral reserves and do not
have demonstrated economic viability. There is no certainty that
all or any part of the mineral resource will be converted into
mineral reserves. The estimate of mineral resources may be
materially affected by environmental, permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant
issues.
|
British Columbia,
Canada
KORE's 100% owned FG Gold property is an advanced-stage gold
project located in the Cariboo Mining Division. The project has a
Measured and Indicated (376,000 ounces) gold resource at an average
grade of 0.776 g/t gold, using a cut-off grade of 0.5 g/t, and an
Inferred gold resource (634,900 ounces) at an average grade of
0.718 g/t gold, using a cut-off grade of 0.5 g/t. Details of the
gold resource can be found in "NI 43-101 Technical Report,
Frasergold Exploration Project, Cariboo Mining Division, dated
July 27, 2015" available under
the Company's profile on SEDAR or on the Company's website.
KORE has a 100% interest in the Gold Creek property located in
the Cariboo Mining Division. Gold Creek is a grassroots gold
project neighbouring, and with similar geology to the Spanish
Mountain deposit owned by Spanish Mountain Gold Ltd.
Yukon Territory,
Canada
KORE's 100% owned Luxor property consists of three
non-contiguous claim blocks totalling 360 mining claims.
Luxor is located in the Dawson Range Gold Belt, a district of major
porphyry, breccia and vein occurrences. Containing the Company's
HAV claims, the Luxor property is located adjacent to the Vertigo
discovery of White Gold Corp. (TSXV: WGO). KORE's 100% owned TAK
property is also located in the Dawson Range Gold Belt and consists
of 82 mining claims.
Neighbouring projects include Goldcorp's Coffee project and
White Gold's White Gold project.
Technical information with respect to the Projects contained
in this news release has been reviewed and approved by David S. Smith, CPG, who is KORE's designated
independent qualified person for the purposes of NI 43-101 and has
verified the sampling, analytical, and test data underlying the
information or opinions contained herein.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any KORE common shares in
the United States. The KORE common
shares to be issued in connection with the Transaction have not
been and will not be registered under the
United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any state securities laws and may
not be offered or sold within the United
States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of TSX Venture Exchange) accepts responsibility for the
adequacy of accuracy of this release.
Cautionary Statement Regarding Adjacent Properties and
Forward-Looking Information
All information contained in this news release with respect
to KORE and Kore was supplied by the parties, respectively, for
inclusion herein, and KORE and its directors and officers have
relied on KORE for any information concerning such party, including
information concerning the Projects.
This news release contains forward-looking statements
relating to the future operations of the Company and other
statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of the Company are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Such factors include, but are not
limited to: uncertainties related exploration and
development; the ability to raise sufficient capital to fund
exploration and development; changes in economic conditions or
financial markets; increases in input costs; litigation,
legislative, environmental and other judicial, regulatory,
political and competitive developments; technological or
operational difficulties or inability to obtain permits encountered
in connection with exploration activities; and labor relations
matters. This list is not exhaustive of the factors that may affect
our forward-looking information. Important factors that
could cause actual results to differ materially from the Company's
expectations also include risks detailed from time to time in the
filings made by the Company with securities regulations.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements as
expressly required by Canadian securities law.
SOURCE Kore Mining