Additional Soils and Geophysics Planned To
Prioritize Drill Targets
VANCOUVER, BC, Dec. 8, 2020 /CNW/ - KORE Mining Ltd. (TSXV:
KORE) (OTCQX: KOREF) ("KORE" or the "Company") is
pleased to announce positive sampling and mapping program results
from the Mesquite-Imperial-Picacho District exploration
("District") on the Imperial Gold project ("Imperial"), which is nine miles southeast
from Equinox Gold's (TSX: EQX) Mesquite gold mine
("Mesquite").
Highlights:
- Discovered gold in several dry stream beds between Mesquite and
Imperial
-
- Highlight samples include 1.4 g/t and 0.5 g/t gold
- Enhances thesis that fault structures from Mesquite to
Imperial have potential to host
multiple gold discoveries similar in scale to Mesquite or
Imperial
- Geophysical interpretation previously defined 19 kilometers of
fault structures including:
-
- Mesquite East, Ogilby, Imperial East and Imperial West target
areas
- Each multi-kilometer target area has potential to host a new
gold deposit
- More outcrop sampled than anticipated, indicating shallow
alluvial cover
- Currently permitting a 140+ pad drill program for district
scale exploration program
Next Steps
- Complete program sampling on Imperial-Picacho area (complete by
January 2021)
- Conduct follow-up detailed soil sampling and geophysics to
Prioritize drill targets in H1 2021
- Drill test highest priority targets; permit for larger program
now expected mid-2021
KORE's CEO Scott Trebilcock
stated: "We are extremely encouraged to discover stream bed gold
occurrences which align with our geophysical model on our
Mesquite-Imperial exploration
area. The discoveries support our thesis that there are
multiple new gold deposits to be discovered close to surface.
KORE's job now is to find the source or sources of the gold by
targeting the 19 kilometers of fault structures interpreted earlier
this year. Imperial County
has over 140 years of gold mining history. The
Mesquite-Imperial-Picacho District and the Imperial gold project could extend that
history for many future generations with new gold discoveries and
provide much needed employment and economic development."
Figure 1 shows the dry stream bed sampling locations
of the assay results. The sampling generated anomalous gold
assays in the two targets areas sampled to-date: Mesquite West, and
Ogilby.
Figure 2 depicts the western half of the District
(Mesquite-Imperial) with three
large exploration areas defined by structural interpretation from
two rounds of 2020 geophysics - Mesquite East, Ogilby and Imperial
West. Having the intact Imperial deposit to "tune" or "fingerprint"
geophysical signatures, greatly enhances the confidence to target
new discoveries under the alluvium along the trend. Details of the
work were released January 7,
2020 and April 29,
2020.
Sampling and Mapping Program Details
Discovery of gold
in the dry stream beds (also called "arroyos" or
"washes") on the Mesquite East and Ogilby targets areas, are
several kilometers from Mesquite and Imperial and not downstream from either,
indicates that gold is being generated from another source.
KORE intends to explore for and discover those sources.
In the course of collecting the samples and mapping the area,
KORE encountered more outcrop than originally anticipated.
This is positive as it means the alluvial cover is shallow in those
areas, making a new oxide gold discovery easier and more
attractive. KORE also found evidence of historic small scale
mining activities including hand and bulldozer trenches, an
exploration shaft and signs of historic placer mining
activity. The mapping and sampling program continues on the
east part of the District towards Picacho.
KORE's exploration team collected 435 stream bed and rock chip
samples over the last three months, prospecting the District.
This news release includes results from 199 dry stream bed samples
with assays pending on the remainder. Samples collected
averaged 6 kilogram in size and were taken at an average depth of
0.4 meters below surface. Of the 199 samples, 95 assayed over
the gold detection limit of 5 parts per billion and 49 assayed over
100 parts per billion (0.1 g/t). Samples locations and assays
are depicted on Figure 1.
Next Steps
The ongoing 2020 mapping and sampling
program will be complete by January 2021. The program was
designed to provide an indicative first pass to the District.
KORE intends to follow-up on anomalies with further detailed soil
sampling grids and detailed geological mapping, and infill
geophysics in H1 2021 ahead of the planned 2021 exploration
drilling program.
Imperial Project Update
KORE's development team based
in Imperial, California has been
active since delivering the positive Preliminary Economic
Assessment for the Imperial
deposit in April 2020, building the
capacity and social license to advance Imperial towards production. COVID-19
has had a major impact on local stakeholders in Imperial
County. The team has done an incredible job in the face of
this challenge and has worked to support the local community and
government agencies in a safe and responsible manner. Recent
project activity:
- Opened an office in Imperial
County in Q3 2020 under the local banner "Imperial
Gold"
- Hired local team of environment, permitting, government
relations and community relations experts
- Actively engaging community and government stakeholders with
over 100 in-person and Zoom meetings, actively building local
social license for Imperial
- Donated COVID-19 test kits and food to local charities
supporting those hit hardest by the pandemic
- Engaged environmental and archeological experts to conduct
baseline work for project permitting
- Building relationships with local Bureau of Land Management
("BLM") office and Imperial County
permitting agencies
KORE is currently permitting a large 140+ pad drill program via
a Plan of Operations ("PO") process with the BLM local
office. KORE had previously planned to permit a smaller
program in 2020 using a Notice of Intent process but was required
by the BLM to move to the more robust and time intensive PO process
including an associated Environmental Assessment ("EA").
Given the robustness of the PO process, KORE decided to increase
the scale of the proposed dill program adding time to the
re-submission. The process has been further impacted by COVID-19
and permits are now expected in mid-2021.
KORE is committed to operate within 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. KORE has designed the drill program to maximize
the existing public road/trail network in the area so as to limit
any new disturbances, and the Company will be adjusting our drill
pad locations as needed to avoid any sensitive sites should any be
encountered during the EA investigations.
About Imperial Gold Project
KORE owns 100% of the
Mesquite-Imperial-Picacho District which consists of 26,323 acres
on 1,007 claims capturing 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 as depicted on Figure
3. 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.
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:
- 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
The Company's NI 43-101 compliant resource and preliminary
economic assessment is titled "Preliminary Economic Assessment –
Technical Report Imperial Gold Project" effective as of
April 6, 2020 and issued on
May 19, 2020, prepared by
Terre Lane and Todd Harvey of Global Resource Engineering and
Glen Cole of SRK Consulting
(Canada) Inc.
About KORE Mining
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 Imperial
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 District and Imperial
Gold 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: final
results of future exploration work, including further mapping and
sampling and the timeline for completion, 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