District Scale Exploration Targeting
High-Priority Structures for Near Surface Gold
Discoveries
VANCOUVER, BC, June 23, 2020 /CNW/ - KORE Mining
Ltd. (TSXV: KORE) (OTCQB: KOREF) ("KORE" or the
"Company") is pleased to announce is mobilizing a ground
geophysics and surface sampling program ("New Exploration Program")
on the Mesquite East and Imperial West areas of the
Mesquite-Imperial-Picacho District exploration project ("District")
to generate further drill targets. KORE is also permitting the
highest priority drill pads for District targets towards the
Mesquite Mine (Equinox Gold | TSX:EQX) and in and around the
current Imperial resource.
Highlights
- Previous rounds of geophysics confirmed district scale with 19
km of anomalies
-
- Mesquite East, Ogilby, Imperial East and Imperial West
areas
- Each target area has potential to host significant new gold
structure
- New Exploration Program will further define specific drill
targets
-
- Over 25 line km of ground geophysics on priority Mesquite East
and Imperial West areas
- 1,500 soil and surface samples from "downstream" washes for
western half of District
- High resolution satellite topography
- Additional field mapping
- Drill pad permitting in progress to test highest priority
current targets at the following areas:
-
- Imperial Resource Expansion – western extension defined by
geophysics
- Mesquite East - two north-west trending fault structures
coincident with regional folding, on-strike from Mesquite's Vista
and Rainbow deposits
- Imperial East and Imperial West - direct extension of
Imperial deposit thrust fault aligned with resource expansion
targets
- Eastern 9 km of District to Picacho and the Ogilby area remains
unexplored and a future opportunity
Next Steps
- New Exploration Program results expected in July and
August 2020
- Drill permits expected in the fall 2020 could accommodate a
multi-phased drill program
- Initial drill program a minimum of 5,000 meters (mix RC and
core drilling)
Scott Trebilcock, President and
CEO of KORE, stated, "Imperial County is a prolific mining District
with almost 150 years of modern gold mining history. The
Mesquite-Imperial-Picacho District trend is a high priority to
expand KORE's already large resource base. KORE will be targeting
both near surface resources to enhance the Imperial project PEA
while targeting blue-sky new discoveries on our 26,000 acres of
claims. The work kicked off today will help us prioritise the
large array of District targets and we are excited to explore this
district with modern exploration methods, never used before in this
district."
Figure 1 shows the Mesquite-Imperial-Picacho
District claims 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.
KORE owns 100% of the District which consists of 26,323 acres on
1,007 claims captures the entire 28-kilometer trend from the
operating Mesquite mine (Equinox Gold | TSX:EQX) to the closed
Picacho mine and including KORE's Imperial project. 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.
Previously, KORE completed two rounds of ground geophysics, the
first to "tune" the system over its Imperial deposit and the second
to define exploration targets on the western half of the District
exploration project. Details of previous targeting work were
released January 7, 2020 and
April 29, 2020.
Click here to for a video walk-through of District
exploration interpretation.
Drill permits at Imperial are with the US Federal agency, the
Bureau of Land Management ("BLM"). KORE is completing a Plan
of Operations process for the permits which is expected to take
three to six months. KORE is committed to operate to the stringent
environmental and labour standards of California. KORE plans
to concurrently reclaim drill pad locations and ensure measures are
taken to mitigate any impacts to biological and cultural
resources.
About Imperial Project
The Mesquite-Imperial-Picacho District 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 and a positive
preliminary economic assessment effective April 6, 2020 with the following highlights
(see also Figure 3):
- Robust economics: US$ 343 million
NPV5% post-tax with 44% IRR at US$1,450 per ounce gold
- Low capital intensity project with only US$ 143 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
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 approximately 65% of the basic shares
outstanding.
Further information on KORE and its assets can be found on the
Company's updated 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
Qualified Person
Technical information with respect to
the Project contained in this news release has been reviewed and
approved by Marc Leduc, P.Eng, who is KORE's COO and is the
qualified person under National Instrument 43-101 responsible for
the technical matters of this news release.
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 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 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/1194970/Kore_Mining_KORE_Mining_Mobilizes_New_Exploration_Program_at_Mes_2.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/1194972/Kore_Mining_KORE_Mining_Mobilizes_New_Exploration_Program_at_Mes_3.jpg)
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SOURCE Kore Mining