VANCOUVER, Feb. 20, 2020 /CNW/ - KORE Mining Ltd. (TSXV:
KORE | OTCQB: KOREF) ("KORE" or the "Company") is
pleased to announce that a diamond drilling program has commenced
at its 100% owned FG Gold Project ("Project" or "FG Gold") in the
Cariboo Region of British
Columbia. A minimum 2,000 meter drilling program is designed
to test near-surface high-grade targets down structure from past
drilling. The drilling contractor is currently
mobilizing to site and we expect the drill rig should be turning
within the week.
KORE CEO Scott Trebilcock stated,
"KORE is investing in exploration across our gold portfolio and we
are excited to commence drilling at FG Gold." Mr. Trebilcock
continued, "We are testing structural controls of high-grade
mineralization in the current gold resource, whereas previous
drilling only focused on bulk disseminated gold. If
successful, the program will open the deposit in a large host rock
mass at depth and generate an exploration model for the
under-explored 20-kilometer trend."
Why Drill FG Gold Project?
- 100% owned large property in prolific gold-copper belt in
Cariboo region of BC
- Past orogenic gold resource and porphyry mineralization
- Re-interpretation of the deposit indicates structural control
of higher grades
- Shallow previous drilling leaves host rock un-tested at
depth
- 20-kilometer gold trend only partially explored
- Low elevation and road accessible for low-cost exploration
The drill program announced today will define and delineate
structural controls on existing higher-grade gold mineralization
and target new higher-grade zones at depth. To understand the
structure, the team will use larger (HQ) diameter, oriented core
with KORE's geologists logging and interpreting the core
contemporaneously with drilling. Contemporaneous logging creates
the opportunity to target mineralized structures in real-time and
maximize the value of each hole. We expect to see results by
early March with assays to follow in due course.
The FG Gold project consists of 35 claims, totaling 13,008 ha,
in the eastern Cariboo region of central British Columbia, approximately 100 km east of
Williams Lake. The project is at
low elevation and accessible by forestry roads. FG Gold hosts
an orogenic gold deposit on the northeast limb of the Eureka
syncline. The southwest limb and hinge zone are
underexplored. The Project also hosts copper-gold porphyry
mineralization at the Nova Zone, discovered by KORE in 2018.
Figure 1 highlights the 20km trend of host rock expression
at surface.
The 20-kilometer trend is defined by gold in soils and
geophysics that traces the mineralized rock group around the
regional syncline. The Project has only been shallowly
drilled where the mineralized rock group comes to surface. Past
drilling averages only 93 meters deep into a steeply plunging
sedimentary host rock. Mineralization is open at depth and
along almost the entire trend. Figure 2 is a regional
cross-section that shows the host rock potential at depth and
potential connection to the Project's porphyritic intrusion.
Drilling at the FG Gold Project consists of 402 bore holes for
49,691 metres generating a current Measured and Indicated resource
of 376,000 ounces at 0.776 g/t gold and an Inferred resource of
634,900 ounces at 0.718 g/t of gold (both using a 0.5 g/t
cut-off)1. A vast majority of the drilling was
reverse circulation ("RC") and narrow diameter core that was
focused on defining a bulk disseminated gold deposit.
Figure 3 shows a plan map of the deposit with gold-in-soils
and previous drill traces.
The previous drilling targeted stratigraphic controls on
mineralization and did not penetrate into the bulk of the host-rock
structure. Drilling was largely done with RC and narrow core to
generate shallow bulk-disseminated gold intercept models.
Within the current resource there appear to be mineralized
corridors or chutes that are open at depth in the host rock.
See Figure 4 for a local cross-section that shows the
untested rock mass and current resource interpretation.
Regional Geology
The FG Gold property straddles the boundary between the Omineca
and Intermontane tectonics belts of the Canadian Cordillera. The
eastward emplacement of the Intermontane Belt onto the Omineca Belt
along the Eureka Thrust Fault caused widespread regional
metamorphism and structural deformation of both Belts. The regional
scale, northwest trending, shallowly plunging, Eureka Syncline is
the dominant resulting structure in the project area. Rocks in the
core of the Eureka Syncline are comprised of basalt, augite
porphyry flows, tuffs and volcanic breccias metamorphosed to a low
grade; they are structurally emplaced onto metavolcanic and
sedimentary rocks of the Quesnel Terrane (see Figure 1). The
Quesnel Terrane is recognized for its prevalence of copper, gold
and molybdenum mines and showings such as those at Highland Valley,
Boss Mountain, QR and Mount Polley.
Property Geology
The FG Gold property is centrally located over the Eureka
Syncline, strategically encompassing two limbs and the hinge zone
of a gold-bearing meta-sedimentary rock unit of the Quesnel
Terrane. The gold-bearing rock, a 'knotted' phyllite, is the host
rock for gold mineralization over the 3 km strike length of the
Resource Area (see Figure 1). Surface mapping and
geophysical inversion of airborne electromagnetic (EM) data
suggests the knotted phyllite has a strike length of over 20 km
with potentially thickened regions occurring in the Eureka Syncline
hinge zone (see Figure 2).
Gold mineralization occurs in and is associated with development
of quartz – Fe carbonate – muscovite – pyrite vein stockwork. The
stockwork is best developed in the knotted phyllite unit. Stockwork
zones locally concentrate in zones greater than 10 meters wide and
are dominantly stratabound. Fe-carbonate alteration and carbonate
porphyroblasts development within the knotted phyllite unit is
observed to extend well outside immediate areas of veining.
About the FG Gold Project
KORE's 100% owned FG Gold property is located in the Cariboo
Mining Division of British Columbia,
Canada. The FG Gold project hosts the Main Zone orogenic
gold deposit on the northeast limb of the under-explored Eureka
syncline. The deposit was subject to extensive historic
shallow drilling for bulk disseminated gold mineralization but has
never been drilled at depth for structurally controlled
mineralization. The southwest limb of the deposit remains
underexplored. In addition, porphyry mineralization was
discovered by KORE in 2018 at the Nova Zone.
1. More information on the FG Gold Project and resource is
available in the NI43-101 Technical Report, Frasergold Exploration
Project, Cariboo Mining Division, BC" dated July 20, 2015 by K.V. Campbell of ERSi Earth
Resource Surveys Inc. and G.H. Giroux of Giroux Consultants Ltd. technical
report ("2015 Technical Report") filed on www.sedar.com and on
KORE's website at www.koremining.com.
A summary of the current resource at the FG Gold project from
the 2015 Technical Report is as follows:
Classification
|
Size
(tonnes)
|
Grade
(g/t)
|
Au
(oz)
|
Au Cutoff
(g/t)
|
Measured
|
5,600,000
|
0.812
|
145,000
|
0.50
|
Indicated
|
9,570,000
|
0.755
|
231,000
|
0.50
|
Inferred
|
27,493,000
|
0.718
|
634,900
|
0.50
|
KORE Engages Market Maker
KORE has subject to regulatory approval, retained Independent
Trading Group (ITG) Inc. ("ITG") to provide market-making service
and to provide assistance in maintaining an orderly trading market
for the common shares of the Company.
The market-making service will be undertaken by ITG, a
registered broker, in compliance with the applicable policies of
the TSX Venture Exchange and other applicable laws. For its
services, KORE has agreed to pay ITG $5,000 per month. KORE and ITG act at arm's
length, and ITG has no present interest, directly or indirectly, in
KORE or its securities. The services commenced on February 1, 2020, with an initial term of three
months and thereafter will automatically renew for successive one
month terms until terminated by either party upon thirty days
written notice. There are no performance factors contained in
the agreement between ITG and KORE and ITG will not receive any
shares or options from the Company as compensation for services it
will render.
About Independent Trading Group (ITG) Inc.
Independent Trading Group specializes in market maintenance
services and has been providing its market maintenance services to
companies ranging from TSXV listed companies to certain of
Canada's largest publicly traded
companies for over 20 years. Independent Trading Group is an
independent, privately held broker-dealer based in Toronto, Ontario and is a member of the
Investment Industry Regulatory Organization of Canada (IIROC), Canadian Investor Protection
Fund (CIPF), as well as a member of all Canadian Stock Exchanges
and Alternative Trading Systems.
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.
On behalf of KORE Mining Ltd
"Scott
Trebilcock"
Chief Executive Officer
(888) 407-5450
Technical information with respect to FG Gold 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 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.
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 all five
sections are available on KORE's website at click here.
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SOURCE Kore Mining