VANCOUVER, April 29, 2020 /CNW/ - KORE Mining Ltd. (TSXV:
KORE | OTCQB: KOREF) ("KORE" or the "Company") is
pleased to announce results from its ground geophysics program on
the Mesquite-Imperial-Picacho District exploration project
("District" or "Project"). Previously, KORE "tuned" the
ground geophysics over its Imperial deposit and has now completed
initial work using the "tuned" signatures to define exploration
targets on the western half of the District exploration
project. The District covers 28 kilometer of total strike
length from the operating Mesquite mine (Equinox Gold Corp. |
TSX:EQX) to the closed Picacho mine and including KORE's Imperial
project.
Highlights
- Confirms district scale: 19 km of anomalies from Imperial to
the Mesquite mine
- Eastern 9 km of District to Picacho remains unexplored and a
future opportunity for KORE
- Structural preparation for low-sulfidation epithermal deposits
like Mesquite, Imperial, and Picacho are evident in interpreted
north-west trending faults and folding
- Four targets areas defined, each with potential to host
multi-million-ounce gold structures:
-
- Mesquite East (6km in length): two north-west trending
fault structures coincident with regional folding, on-strike from
Mesquite's Vista and Rainbow deposits
- Ogilby (7km in length): two parallel fault structures
coincident with historic placer gold mining
- Imperial East and Imperial West (together 6km in
length): direct extension of Imperial deposit thrust fault aligned
with previously announced resource expansion targets
Next Steps (anticipated in Q2 2020)
- Mesquite East and Imperial East and West follow-up program will
include:
-
- Field mapping, soil sampling and additional ground geophysics
to target drilling
- Drill testing highest priority targets
- Ogilby will remain a future opportunity for KORE
Click here to for a video walk-through of District
exploration interpretation.
Figure 1 shows the Mesquite-Imperial-Picacho claim
in relation to KORE's Imperial project, the operating Mesquite mine
and the closed Picacho mine. Figure 2 depicts the
western half of the District (Mesquite-Imperial) with the three
newly defined target areas with main interpreted target
structures.
Scott Trebilcock, President and
CEO of KORE, stated, "KORE's recent work is the first step in the
exploration process to tap the vast potential of the
Mesquite-Imperial-Picacho District." Mr. Trebilcock
continued, "Districts controlled by a single Company are rare in
the hyper-competitive gold exploration world. Unlocking the
potential of the Mesquite-Imperial-Picacho District could extend
Imperial County's long history of gold mining for many decades to
come."
KORE owns 100% of the District which consists of 26,323 acres on
1,007 claims and captures the entire 28-kilometer
trend. In the District, gold is hosted in local fault
structures related to a series of regional faults connecting the
known District deposits. Those three District deposits
(Mesquite-Imperial-Picacho) were discovered in exposed outcrops and
from placer workings. The rest of the District is covered by
alluvium and has never been systematically explored. Having
the intact Imperial deposit to "tune" or "fingerprint" geophysical
signatures, greatly enhances the ability to explore and target
deposits under the alluvium and make new discoveries along the
trend.
Ground Geophysics Program Details
Q1 2020 exploration utilized Induced Polarization ("IP")
geophysics with 16 lines for a total of 45 line km's, including
those announced in the January 7,
2020 news release. IP geophysics was the chosen method due
to the success of the identified geophysical signature
corresponding well with that of the intact Imperial gold deposit
also announced January 7, 2020.
New ground geophysics lines consisted of 29.4 line kilometers of
induced polarization. Figure 2 shows the location of the
induced polarization and magnetic surveys.
Results and Conclusions
The District, in addition to the large Mesquite-Imperial-Picacho
deposits, has a long history of placer gold mining from surficial
gravels. Several Mesquite group deposits and the Imperial deposit
were discovered from following the gold in gravels to the
underlying hard-rock gold mineralization. Documented placer
gold mining in the District goes as far back as the
trans-continental railroad construction in the late 1800's but
archeological evidence goes back into the Spanish colonial
period. Much of the District is covered in alluvium from the
Colorado river valley and there is little to no outcrop.
Geophysics is the best way to target drilling under the
gravels.
Mesquite East target is interpreted as multiple near
vertical and parallel NW trending resistive fault structures on
strike with the Vista and Rainbow pits of the adjacent Mesquite
Mine. These resistive structures are coincident with regional
folding and are flanked by locally high chargeability anomalies
that could be indicative of remnant sulphide mineralization. The
conceptual targets are highlighted in Figure 2.
Follow-up work on Mesquite East will include ground
reconnaissance soil sampling, additional ground geophysics, and
drill targeting on the interpreted structures.
The Ogilby Target area sits between the Mesquite
East and Imperial West target areas. The Ogilby
Target, much like the Mesquite mine and the Imperial deposit,
have historic placer gold mining from surficial gravels. The
interpreted near vertical resistive structures (faults) appear to
have good continuity through to both the Imperial deposit to the
east and the Mesquite mine to the west. As with the Mesquite
East target, the resistive structures appear to be flanked by
higher chargeability zones, indicative of sulphides or partially
oxidized sulphides. The conceptual targets are highlighted in
Figure 2.
The Imperial East and Imperial West target areas are a
direct extension of the drilled resource of the Imperial deposit.
The interpreted thrust fault structure underscores the Imperial
deposit and continues for 2.5 km to the west and at least 1 km to
the east, for a total interpreted strike length of over 6 km. A
second near vertical fault structure has been interpreted on the
north side of the drilled deposit and has not seen any drilling.
The conceptual targets are highlighted in Figure
2.
About Imperial Project
The Mesquite-Imperial-Picacho trend centers on KORE's Imperial
project. Imperial is a structurally controlled intermediate
sulfidation epithermal gold deposit. The 100% oxide gold deposit is
currently defined at 2.44 kilometer long and up to 0.75 kilometer
wide and is open both along strike and downdip. It is hosted in a
shallowly southwest dipping, amphibolite grade metamorphic rock
suite along a west-northwest trending low-angle regional thrust
fault system. The thrust fault system controls the regional
geometry of mineralization. East-west striking, post-mineralization
normal faults control the property scale geometry of
mineralization. Geophysical characterization of the deposit and
regional controlling structures is an essential component of
exploration for additional resources.
Imperial has a mineral resource estimate, published December 30, 2019 and a positive preliminary
economic assessment published April 6,
2020 with the following highlights (see also Figure
3):
- Robust economics: US$ 343 million
NPV5% post-tax with 44% IRR at US$1,450 per ounce gold
- Low capital intensity project with only US$ 142 million pre-production capital cost
- 146,000 ounces gold per year over 8 years for 1.2 million
ounces total production
- Technically simple project: shallow open pit, run-of-mine heap
leach with existing infrastructure
- Value enhancement through Mesquite-Imperial-Picacho District
exploration and resource expansion
Other Matters
KORE has granted stock options to its Chief Financial Officer
and its Chief Operating Officer as part of the Company's long-term
incentive plan exercisable into 800,000 common shares of KORE at
$0.435 per share with a five year
term. KORE has also retained Kin Communications to provide investor
relations services to the Company for a term of twelve months and
as part of their remuneration has granted Kin Communications
200,000 stock options exercisable at $0.435 per share with a five year term, vesting
in stages pursuant to the requirements of the TSX Venture Exchange,
in addition to a monthly fee of $7,500. All options have been granted
pursuant to the Company's stock option plan, and subject to
compliance with all applicable laws and the rules (and approval) of
the TSX Venture Exchange.
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 the Imperial deposit
and project contained in this news release has been reviewed and
approved by Marc Leduc, P.Eng., who
is KORE's designated qualified person under National Instrument
43-101 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", "intends", "indicates" 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. Forward-looking
statements in this news release include, but are not limited to,
statements with respect to: the potential gold structures at the
District deposits, next steps and timing regarding follow-up
programs at the District, results of the PEA, including future
Project opportunities, future operating and capital costs, closure
costs, AISC, the projected NPV, IRR, timelines, permit
timelines, and the ability to obtain the requisite permits,
economics and associated returns of the Imperial Project, the
technical viability of the Imperial Project, the market and future
price of and demand for gold, the environmental impact of the
Imperial Project, and the ongoing ability to work cooperatively
with stakeholders, including the local levels of government.
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 year ended December 31, 2019 prepared as of April 27, 2020 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.
Cautionary Note Regarding Mineral Resource
Estimates: Information regarding mineral resource
estimates has been prepared in accordance with the requirements of
Canadian securities laws, which differ from the requirements of
United States Securities and Exchange Commission ("SEC") Industry
Guide 7. In October 2018, the SEC
approved final rules requiring comprehensive and detailed
disclosure requirements for issuers with material mining
operations. The provisions in Industry Guide 7 and Item 102 of
Regulation S-K, have been replaced with a new subpart 1300 of
Regulation S-K under the United States Securities Act and will
become mandatory for SEC registrants after January 1, 2021. The changes adopted are intended
to align the SEC's disclosure requirements more closely with global
standards as embodied by the Committee for Mineral Reserves
International Reporting Standards (CRIRSCO), including Canada's NI 43-101 and CIM Definition
Standards. Under the new SEC rules, SEC registrants will be
permitted to disclose "mineral resources" even though they reflect
a lower level of certainty than mineral reserves. Additionally,
under the New Rules, mineral resources must be classified as
"measured", "indicated", or "inferred", terms which are defined in
and required to be disclosed by NI 43-101 for Canadian issuers and
are not recognized under SEC Industry Guide 7. An "Inferred
Mineral Resource" has a lower level of confidence than that
applying to an "Indicated Mineral Resource" and must not be
converted to a Mineral Reserve. It is reasonably expected that the
majority of "Inferred Mineral Resources" could be upgraded to
"Indicated Mineral Resources" with continued exploration.
Accordingly, the mineral resource estimates and related information
may not be comparable to similar information made public by
United States companies subject to
the reporting and disclosure requirements under the United
States federal laws and the rules and regulations thereunder,
including SEC Industry Guide 7
![Figure 1 – Imperial Claims Controlling the Mesquite-Imperial-Picacho Gold District (CNW Group/Kore Mining) Figure 1 – Imperial Claims Controlling the Mesquite-Imperial-Picacho Gold District (CNW Group/Kore Mining)](https://mma.prnewswire.com/media/1161514/Kore_Mining_Kore_Mining_Defines_Gold_Exploration_Targets_Adjacen.jpg)
![Figure 2 – Mesquite to Imperial Ground Geophysics Interpretation (CNW Group/Kore Mining) Figure 2 – Mesquite to Imperial Ground Geophysics Interpretation (CNW Group/Kore Mining)](https://mma.prnewswire.com/media/1161516/Kore_Mining_Kore_Mining_Defines_Gold_Exploration_Targets_Adjacen_1.jpg)
![Figure 3 – Imperial Gold Project PEA Summary (CNW Group/Kore Mining) Figure 3 – Imperial Gold Project PEA Summary (CNW Group/Kore Mining)](https://mma.prnewswire.com/media/1161515/Kore_Mining_Kore_Mining_Defines_Gold_Exploration_Targets_Adjacen__2.jpg)
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