VANCOUVER, Jan. 30, 2020 /CNW/ - KORE Mining Ltd. (TSXV:
KORE | OTCQB: KOREF) ("KORE" or the "Company") is
pleased to announce results from H2 2019 exploration programs at
the Long Valley gold project ("Long Valley" or "Project") that
defined a new exploration strategy for both oxides and sulphides
and generated high priority drill targets.
Highlights
- Tested new exploration strategy, opening potential for resource
expansion and new discoveries
- Generated data-driven, high priority oxide gold drill
targets
- Defined clear targets for drilling sulphide "feeder"
structures
Next Steps (H1 2020)
- Apply new exploration strategy to remainder of current deposit
(Q1 2020)
-
- Complete ground geophysics on northern half of deposit
(underway)
- Complete re-logging and multi-element analysis of historic
drilling
- Develop drill program for highest priority targets and commence
permitting (late Q1 2020)
Scott Trebilcock, President and
CEO of KORE, stated, "Long Valley is a large, intact epithermal
gold deposit historically drilled for near surface oxide gold,
leaving the underlying sulphides un-tested." Mr. Trebilcock
continued, "KORE's exploration team developed a new exploration
strategy for both oxides and sulphides and looks forward to testing
the highest priority targets."
In H2 2019, the KORE exploration team re-logged 232 of 896 drill
holes, conducted geological mapping, and collected rock and soil
samples. The team also conducted two lines of ground induced
polarization ("IP") and magnetic geophysics coinciding with drill
holes that were re-logged and soil sampling lines. The
objective of the work was to prove up a new exploration strategy,
testing it against known mineralization and generate drill
targets. Figure 1 shows the location of the IP
geophysics surveys and cross sections.
Figure 2, Cross-Section 250 attached to this release,
shows the current oxide mineralized area as a chargeability
low. Immediately below the current oxide mineralization is a
resistivity high, thought to be a feeder structure for the
mineralization. Using this model, there are four new near surface
oxide targets outlined by chargeability lows and two sulphide
feeder structures, outlined by resistivity highs. Near surface
oxide targets are coincident with anomalous gold in soil
sampling.
Figure 3, Cross-Section 600 is available on KORE's
website by clicking here. The cross-section again shows
current oxide mineralization as a chargeability low that is above a
resistivity high, thought to be a feeder structure for the
mineralization. There appear to be four near surface oxide targets
outlined by chargeability lows and three sulphide feeder zone
targets, outlined by resistivity highs. Near surface oxide targets
are coincident with anomalous gold in soils and rock outcrop
sampling.
Figure 4 and 5, Soil Geochemistry and Rock Geochemistry
Maps is available on KORE's website by clicking here.
Anomalous gold in soils, gold in rocks, and mapped alteration of
surface outcrop, significantly expand the exploration footprint of
the deposit, well beyond the current limits of drilling, creating
numerous potential areas for oxide gold mineralization expansion.
The on-going additional ground geophysics lines will enhance the
oxide targeting and potential for more sulphide feeder zone
targets.
About Long Valley Gold Project
Long Valley is a 100% owned epithermal gold project located in
Mono County, California. Within
the Project, is the Long Valley deposit, an intact epithermal gold
deposit ("Deposit") with a large 2.5 by 2 kilometer oxide gold
footprint. A total of 896 holes have been drilled on the
Project, the majority being completed by reverse circulation with
lesser core, rotary and air track. Figure 1 shows the
claims, drill collar locations and mineralized area.
The current mineral resource estimate is 1,247,000 ounces of
Indicated gold and 486,000 ounces of Inferred gold from 66.8
million tonnes of 0.58 grams per tonne and 23.6 million tonnes of
0.65 grams per tonne, respectively. The mineral resource
consists of oxide, transition and sulphides. The estimate was
prepared Neil Prenn, P.E., and Steven
Weiss, C.P.G. of Mine Development Associates with an
effective date of November 15,
2019. More information is available in the technical report
filed on www.sedar.com and on KORE's website at
www.koremining.com.
The Long Valley deposit is an intact low sulphidation epithermal
gold/silver deposit, hosted within a melange of fine to coarse
volcanogenic sedimentary lithologies. Mineralization at the
Long Valley deposit has developed due to a combination of
deep-rooted fault structures and a resurgence of rhyolite within an
active caldera. The Hilton Creek Fault structure transects
and served as a fluid conduit for interaction with the underlying
hydrothermal system, while the rhyolite resurgence caused brittle
fracturing of sediments and created voids or traps for
mineralization and gold deposition. The combination of these
factors yields strongly altered kaolin and quartz-hematite zones
that are the primary host for gold mineralization.
Detailed Results and Conclusions
Historic drill core re-logging included multi-element analysis
by XRF and short-wave infrared ("SWIR") spectroscopy. The analyses
enable data-driven determination of the mineralized and
un-mineralized alteration mineral assemblages. Key
observations from core re-logging:
- Hilton Creek Zone appears
partially oxidized to the base of drilling opening potential for
further oxides at depth;
- South Zone has numerous open prospective areas at depth and
between drill holes; and
- SWIR mineral analysis concluded that Dickite and Illite were
the key mineralization-related alteration minerals and can be used
to target exploration.
Key observations from bedrock mapping, rock and soil
sampling:
- Spatial relationship between intense kaolin and quartz-hematite
alteration zones at the unconformity contact between the rhyolite
and volcaniclastic sedimentary rock
- Anomalous gold in rock and soil samples occurs along traces of
the Hilton Creek Fault in areas that have not been drill tested,
representing important targets within the claim group
Field and drilling observations point to a mineralization model
controlled by:
- Positioning of deep-rooted fault or "feeder" structures;
- Well-developed alteration and fracture network at the rhyolite
dome front; and
- Stratigraphy permissible to quench and trap hydrothermal fluid
(i.e. sandstone/tuff).
An implication of deep-rooted fault systems in low sulphidation
epithermal systems is that mineralization can occur at all levels
between the magmatic source and the surface. Low sulphidation
epithermal systems typically form distal to magmatic sources when
compared to other epithermal system types. Presuming a structural
or lithological 'trap' were present at lower levels in the
stratigraphy closer to the magmatic source; it is theorized that
sulphide-type mineralization could be present at depth along and
adjacent to faults.
Key observations from ground (IP) geophysics:
- High resistivity anomalies correspond with the Hilton Creek
Fault and relatively high grade gold mineralization;
- Low chargeability anomalies correlate directly with the known
gold-oxide zone; and
- High chargeability anomalies occur marginal to the Hilton Creek
Fault.
In general, resistivity delineates the fault system and
chargeability differentiates oxide vs. sulphide mineralization
potential at depth. This geophysical 'fingerprint' of the deposit
has resulted in promising new prospective zones for oxide and
sulphide mineralization types. The new geological model of
exploration coupled with results from geophysics, bedrock mapping
and soil and rock geochemistry has generated data-driven,
drill-ready targets supported by all four data sets (see Figures
1-5).
About KORE
KORE is 100% owner of a portfolio of advanced gold exploration
and development assets in California and British Columbia. KORE is
supported by strategic investors Eric
Sprott and Macquarie Bank who, together with the management
and Board own 66% of the basic shares outstanding. Further
information on KORE and its assets can be found on the Company's
website at www.koremining.com and at www.sedar.com, or by
contacting us as info@koremining.com or by telephone at (888)
407-5450.
On behalf of KORE Mining Ltd
"Scott
Trebilcock"
Chief Executive Officer
(888) 407-5450
Technical information with respect to Long Valley deposit and
project 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 this news release.
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.
Neither the 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.
Cautionary Statement Regarding Adjacent Properties and
Forward-Looking Information
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. Such forward-looking
statements, and any assumptions upon which they are based, are made
in good faith and reflect our current judgment regarding the
direction of our business. Management believes that these
assumptions are reasonable. Forward looking information involves
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information. For further information on the
Company's Long Valley Project, please see the Company's NI 43-101
Technical Report dated November 15,
2019, entitled "Amended Technical Report and Resource
Estimate for the Long Valley Project, Mono County, California, USA" filed on the
Company's website and also available under the Company's issuer
profile on www.sedar.com.
Such factors include, among others: risks related to
exploration and development activities at the Company's projects,
and factors relating to whether or not mineralization extraction
will be commercially viable; risks related to mining
operations and the hazards and risks normally encountered in the
exploration, development and production of minerals, such as
unusual and unexpected geological formations, rock falls, seismic
activity, flooding and other conditions involved in the extraction
and removal of materials; uncertainties regarding regulatory
matters, including obtaining permits and complying with laws and
regulations governing exploration, development, production, taxes,
labour standards, occupational health, waste disposal, toxic
substances, land use, environmental protection, site safety and
other matters, and the potential for existing laws and regulations
to be amended or more stringently implemented by the relevant
authorities; uncertainties regarding estimating mineral resources,
which estimates may require revision (either up or down) based on
actual production experience; risks relating to fluctuating metals
prices and the ability to operate the Company's projects at a
profit in the event of declining metals prices and the need to
reassess feasibility of a particular project that estimated
resources will be recovered or that they will be recovered at the
rates estimated; risks related to title to the Company's
properties, including the risk that the Company's title may be
challenged or impugned by third parties; the ability of the Company
to access necessary resources, including mining equipment and
crews, on a timely basis and at reasonable cost; competition within
the mining industry for the discovery and acquisition of properties
from other mining companies, many of which have greater financial,
technical and other resources than the Company, for, among other
things, the acquisition of mineral claims, leases and other mineral
interests as well as for the recruitment and retention of qualified
employees and other personnel; access to suitable infrastructure,
such as roads, energy and water supplies in the vicinity of the
Company's properties; and risks related to the stage of the
Company's development, including risks relating to limited
financial resources, limited availability of additional financing
and potential dilution to existing shareholders; reliance on its
management and key personnel; inability to obtain adequate or any
insurance; exposure to litigation or similar claims;
currently unprofitable operations; risks regarding the ability of
the Company and its management to manage growth; and potential
conflicts of interest.
In addition to the above summary, additional risks and
uncertainties are described in the "Risks" section of the Company's
management discussion and analysis for the interim period ended
September 30, 2019 prepared as of
November 28, 2019 available under the
Company's issuer profile on www.sedar.com.
Forward-looking statements contained herein are made as of
the date of this news release and the Company disclaims any
obligation to update any forward-looking statements, whether as a
result of new information, future events or results, except as may
be required by applicable securities laws. There can be no
assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information.
There is no certainty that all or any part of the mineral
resource will be converted into mineral reserve. It is uncertain if
further exploration will allow improving the classification of the
Indicated or Inferred mineral resource. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability.
A full set of high-resolution Figures including both
sections, rock and soil sampling are available on KORE's website
here (or copy and paste this into your
browser: https://www.koremining.com/exploration-highlights).
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SOURCE Kore Mining