Kilo Goldmines (CVE:KGL) Thursday unveiled an updated NI 43-101 resource estimate for its 71.25 percent-owned Adumbi Project in the Democratic Republic of Congo (DRC).
The DRC-focused gold explorer said in the Inferred category, at a
cut-off grade of 0.5 grams per tonne (g/t) gold, the resource estimate
comprises 35.6 million tonnes containing 1.87 million ounces of gold at
an average grade of 1.63 g/t gold.
Thursday afternoon, Kilo Goldmines shares were up 9 percent to 24 cents.
Kilo saw an increase in average gold grade by 18 percent and said that
the mineralization remains open on strike and at depth and further
infill and step-out drilling is planned.
Kilo's president and
chief executive officer Alex van Hoeken said: "Our latest updated
mineral resource estimate reaffirms that the Adumbi deposit has
significant gold mineralization, with significant potential to grow in
size with further systematic exploration.
this year's exploration focus is on the adjacent nearby prospects, the
new Adumbi mineral resource estimate will contribute to the overall
objective of increasing and improving the mineral resources within the
Adumbi exploitation permit.
"Management continues to believe
that the Adumbi mineral resource as currently defined has significant
upside potential and more drilling, which will commence shortly on land
immediately adjacent to the Mineral Resource as currently defined, will
test this hypothesis."
Thursday's updated mineral resource
estimate was based on a more robust geological model, culminating in an
increase in average grade and a corresponding increase in gold ounces
within higher grade categories. It was based on approximately 10,750
metres of sampling data, including data from 4 underground adits, 49
diamond boreholes and 18 surface trenches.
The deposit remains open at depth and along strike and is thus believed to have significant upside potential, Kilo Goldmines said.
Kilo Goldmines has over 7,000 square km of favourable Archaean Kibalian greenstone in the Kilo-Moto area in north-eastern DRC.