Increases Project Scale by 750% with 14,104
Acres of Claims Staked
VANCOUVER, BC, Dec. 1, 2020 /CNW/ - KORE Mining Ltd. (TSXV:
KORE) (OTCQX: KOREF) ("KORE" or the "Company") is
pleased to announce the staking of 14,104 acres of additional
claims at the Company's 100% owned Long Valley Gold Deposit
("Long Valley" or "Project"), located in California, USA. The claims were staked
after prospecting identified additional gold targets to the north,
west and east of the current property boundaries. The new
claims increase claim area by 750% on a Project that already hosts
mineralization with a Preliminary Economic Assessment yielding an
after-tax NPV5% of US$ 273
million as announced October 27,
2020 using a US$ 1,600
per ounce long term gold price.
HIGHLIGHTS:
- Staked 14,104 acres of claims, increasing scale of Long Valley
project by 750% to 15,965 acres
- District scale land package covers all deep-rooted fault
structures of similar genesis to the Hilton Creek fault, the
primary 'conduit' for current Long Valley epithermal gold/silver
deposit
- Expanded near surface oxide gold exploration targets through
both geophysics and prospecting of new and existing claims
- Mapped widespread alteration indicative of Long Valley
epithermal gold/silver mineralization on new claims
- Drill program permitting in progress with drilling expected to
start in H1 2021
KORE's CEO Scott Trebilcock
stated: "Once again KORE, as it did at Imperial and the South
Cariboo, has consolidated district scale exploration potential for
a 100% owned gold project. The additional 14,104 acres of
royalty-free claims at Long Valley increases project scale by 750%,
and opens up a whole new set of shallow oxide and potential feeder
structure growth targets. Our team was in the field earlier
this year and identified eight new oxide drill targets by sampling
and mapping outcrop and alteration which are now fully captured in
KORE's claim area."
Mr. Trebilcock continued, "Long Valley is a well preserved low
sulphidation gold/silver system, similar to Kinross Gold's Round
Mountain deposit in Nevada. We look forward to drill
testing the highest priority growth targets with permits expected
in the first half of 2021."
Figure 1 maps the old and new claims with outlines
of the current Long Valley resource.
NEXT STEPS
KORE plans to drill-test the highest
priority oxide and sulphide targets. KORE is currently
permitting drill pads with drilling planned for H1 2021, subject to
our regulator, the US Forest Service, permitting
timelines.
There is a clear opportunity to grow shallow oxide
mineralization as the system remains open in all directions and can
be further expanded with new discoveries along separate parallel
structures. The new claims host multiple, discrete drill targets as
well as the potential to contain yet unrecognized mineralized
structures. Additional mineralization could extend mine life,
reduce capital intensity and generate higher project economic
returns modelled in the positive PEA announced October 27, 2020. An updated summary of
oxide expansion targets is included in Figure 2.
Additionally, as a fully intact epithermal deposit with a large
at surface footprint, Long Valley has the potential for high-grade
sulphides in the underlying feeder structures. Discovering
high-grade sulphides would open up additional development pathways
for the Project, such as underground mining and milling of
mineralization. A summary of sulphide expansion targets,
interpreted feeder structures, is included in Figure 2.
Additional details of the Long Valley exploration targets are in
KORE news releases dated January 30,
2020 and March 24,
2020.
ABOUT LONG VALLEY GOLD DEPOSIT
Long Valley is 100%
owned epithermal gold project located in Mono County California. The Long Valley
deposit is an intact epithermal gold deposit with a large 2.5 km by
2 km oxide gold footprint.
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 Long
Valley 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.
The Hilton Creek Fault remains underexplored on-strike north and
south and several parallel structures have been defined using
geophysics, the eastern one hosting some of the current mineral
resource and the western one being unexplored. Long Valley is
therefore open to new oxide discoveries in all directions.
More details on the deposit geology and exploration potential can
be found in KORE's January 30,
2020 and March 24,
2020 news releases.
Other Matters
KORE has retained SRC Swiss Resource Capital AG ("SRC") to
provide investor relation services in Europe for the Company for a term of twelve
months and renewable quarterly thereafter, for monthly fee of
CHF$5,000. In addition, the Company has granted 200,000 stock
options exercisable at $1.34 per
share with a five year term and vesting in stages pursuant to the
requirements of the TSX Venture Exchange. Included in this
grant of options is 100,000 stock options to SRC and 75,000 to Kin
Communications. 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 investor Eric
Sprott who recently invested $7.0
million, bringing his total ownership to 26%. KORE
management and Board are aligned with shareholders, owning an
additional 38% of the basic shares outstanding. KORE is
actively developing its Imperial Gold project and is aggressively
exploring across its portfolio of assets.
Further information on the Long Valley project and KORE can be
found on the Company's website at www.koremining.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 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", "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
results of the PEA, including future Project opportunities, , the
projected NPV, , permit timelines, and the ability to obtain the
requisite permits, the market and future price of and demand for
gold, , and the ongoing ability to work cooperatively with
stakeholders, including the all 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.
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SOURCE Kore Mining