Drill Testing Shallow Oxide Expansion and
Sulphide Feeder Structure Targets and Expanding
Exploration Strategy onto District Scale Claims
VANCOUVER, BC, March 23, 2021 /CNW/ - KORE Mining Ltd. (TSXV:
KORE) (OTCQX: KOREF) ("KORE" or the "Company") is
pleased to announce the 2021 exploration plan for the Long Valley
gold and silver project ("Project"). The plan includes drill
testing the highest priority shallow oxide resource growth targets
and the underlying sulphide feeder structure targets. In
addition, KORE's exploration strategy will be expanded to the newly
staked 14,104 acre district scale claim area and supplemented with
a new satellite survey.
HIGHLIGHTS:
- Drill test highest priority shallow oxide resource expansion
and untested underlying sulphide "feeder structures" targets -
minimum 5,000 meter program
- Potential to expand drilling to 15,000 meters, if
warranted
- Drill program permitting in progress with drilling expected to
start late in Q2 2021
- Complete in Q2 2021 a satellite multispectral survey to
identify alteration, associated with gold mineralization, on entire
15,965 acres of claims
- Expand ground geophysics surveys to generate and refine
additional oxide and deeper structural targets
- Further mapping and geochemical sampling on new structural
targets
KORE's CEO Scott Trebilcock
stated: "Our 2021 exploration plans will extend our successful
exploration strategy onto our new district-scale 14,105 acres of
claims at Long Valley, opening the potential for discovery of new
oxide gold deposits. At the main deposit, we remain on track
to drill our exciting resource expansion and underlying feeder zone
targets in mid-2021."
Figure 1 shows the project claims with outlines of
the current Long Valley resource.
The Company has identified opportunities to expand the shallow
oxide mineralization in all directions, further grow by making new
discoveries along separate parallel structures and further yet on
additional yet unrecognized mineralized structures on the
district-scale claims. Additional mineralization could extend
mine life, reduce capital intensity and generate higher project
economic returns than the 1.2 million ounces of Indicated gold and
0.5 million ounces of Inferred gold from 64 million tonnes of 0.58
grams per tonne and 22 million tonnes of 0.65 grams per tonne,
respectively, modelled in the preliminary economic assessment
("PEA") announced October 27,
2020.
Additionally, as a fully intact epithermal deposit with a large
at surface footprint, Long Valley has the potential for high-grade
sulphides and discrete vein zones in the underlying feeder
structures. The discovery of high-grade, sulphide dominant
gold ("Au")-silver ("Ag") mineralization in addition to
near-surface oxide Au-Ag mineralization would open up additional
development pathways for the Project, such as underground mining
and milling of mineralization.
Figure 2 shows a plan of controlling fault structures,
drill target areas, drill hole location in permitting and locates
cross sections. Figures 3 and 4 layout the highest
priority drill targets in section. Drill holes are designed
to test both near surface oxide expansion and deeper structures
extending below the known resource with multiple holes planned from
each pad.
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
The Long Valley deposit
is an intact low sulphidation epithermal Au-Ag deposit with a large
2.5 km by 2 km oxide footprint, 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 potential 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.
About Long Valley Gold Project
Long Valley is 100%
owned epithermal gold and silver project located in Mono County, California. Figure 1 shows
the claims and mineralized area. The 15,965 acre land package
is district in scale and covers all deep-rooted fault structures of
similar genesis to the Hilton Creek fault, the primary 'conduit'
for the current Long Valley deposit.
A total of 896 holes have been drilled on the Project, the
majority being completed by reverse circulation with lesser core,
rotary and air track. The current mineral resource estimate
is 1,217,000 ounces of Indicated gold and 456,000 ounces of
Inferred gold from 63.7 million tonnes of 0.58 grams per tonne and
22.0 million tonnes of 0.65 grams per tonne, respectively.
The mineral resource consists of oxide, transition and
sulphides. The estimate was prepared Neil Prenn, P.E. of Mine
Development Associates with an effective date of September 15, 2020.
A Preliminary Economic Assessment for a shallow, low-strip heap
leach Au-Ag project was filed October 27,
2020 with the following highlights:
- US $273 million NPV5% post-tax
with IRR of 48% at US$ 1,600 per
ounce gold ;
- Significant leverage to gold: US$ 395
million NPV5% at spot US$
1,900 per ounce gold;
- 102,000 ounces gold per year over 7 years mine life;
- Technically simple: shallow open pit, heap leach with nearby
infrastructure;
- Unmodelled silver potential from metallurgical test-work;
and
- Shallow oxide and sulphide feeder exploration potential to
further enhance project.
More information is available in the technical report filed on
SEDAR at www.sedar.com and on KORE's website at
www.koremining.com.
About KORE Mining
KORE is 100% owner of the Imperial
and Long Valley gold projects assets in California. Both
projects have positive economic assessments that put KORE on the
path to produce up to 350,000 ounces of gold production per year.
KORE is supported by strategic investor Eric Sprott who owns 26% of KORE's basic
shares. 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 Long Valley 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 Long Valley 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: the
actual timing and implementation of the 2021 exploration plan and
strategy for the Long Valley Project, the actual timing of
completion of the 2021 exploration plan for the Long Valley
Project, the opportunities of expansion at the Long Valley Project,
the results of the PEA, including future Project opportunities, the
projected NPV, permit timelines, the current mineral resource
estimate, 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
