KORE MINING INCREASES SCALE OF WESTERN MESQUITE-IMPERIAL- PICACHO TARGET AREAS WITH NEW ASSAYS Anomalous Samples include 10 gram per tonne Gold in Stream Sediments halfway between the Imperial Gold Project and the Mesquite Gold Mine
KORE MINING INCREASES SCALE OF WESTERN MESQUITE-IMPERIAL-
PICACHO TARGET AREAS WITH NEW ASSAYS
Anomalous Samples include 10 gram per tonne Gold in Stream Sediments halfway between the Imperial Gold Project and the Mesquite Gold Mine
VANCOUVER, BC
,
May 17, 2022
/CNW/ - KORE Mining Ltd. (TSXV: KORE) (OTCQX: KOREF) ("
KORE
" or the "
Company
") is pleased to announce that a
9.98 grams per tonne ("g/t") gold stream sediment sample has been collected at the Powerline target area ("
Powerline
") at the Imperial Gold Project
(
"Imperial"
). Follow up work has established a 45-acre gold anomaly with 600 meters of strike at Powerline situated between two outcrops of mineralized
gneiss, the same host rock type of the Imperial deposit. The total strike potential of the Powerline trend is over 5 kilometers. KORE is also pleased to highlight
a 0.77 g/t gold stream sediment sample collected from the Ogilby target area, establishing a priority drill target where drill permitting is currently in progress.
Highlights:
9.98 g/t gold ("Au") stream sediment sample collected at Powerline target area.
Additional sampling yielded a 600-meter trend of highly anomalous stream sediment samples.
Trend situated between two mineralized gneiss outcrops: the Powerline discovery outcrop and Ironwood outcrop.
Large, shallow geophysical anomaly similar to the Imperial deposit aligns with the trend.
0.77 g/t Au stream sediment sample collected within Ogilby segment boundary, an area with drill permitting in progress.
KORE's Executive Chairman,
James Hynes
, commented, "The exploration potential of the Mesquite-Imperial-Picacho trend is one the best exploration
opportunities in the Western US gold fields. Our team has done an incredible job prospecting this huge area and we are seeing the potential we expected
when we assembled the claim area over the last several years. There is much more to come, and we look forward to turning drills on the best targets in the
near future."
KORE has defined five prospect areas for the exploration areas
west
of Imperial towards the Mesquite gold mine (
"Mesquite"
) owned by Equinox Gold (TSX:
EQX). This release summarizes the geologic setting of the new high-grade samples collected at the Powerline and Ogilby targets, and the proposed follow up
work along the trends. The five western prospects include Mesquite East and Ogilby which are currently being permitted for drilling (see news release
May 12, 2022
), Powerline, Smoketree and Ironwood.
In total, the Company has nine highly prospective drill targets identified in the overall Mesquite-Imperial-Picacho District ("
District
") that captures
28 kilometers ("km") of prospective ground from Mesquite to the historic Picacho gold mine ("
Picacho
"). The four target areas east of Mesquite are described
in KORE's news release from
April 26, 2022
.
KORE is committed to operating within the stringent environmental and labour standards of
California
. Exploration drilling is designed to avoid any sensitive
areas and all land disturbances will be rehabilitated.
Figure 1
shows the geologic map of the Powerline and Ogilby target areas, the locations of associated prospects, and anomalous gold assays from stream
sediment and rock chip sampling.
Figure 2
shows the georeferenced induced polarization ("IP") geophysics sections intersecting the Powerline and Ogilby target areas, and mentioned
subsurface anomalies.
Figures 3
shows a photo compilation of prospective areas at Powerline, gold flakes and nuggets discovered at the site of the 9.98 g/t Au sample, and the
person-portable drilling apparatus in use at the Powerline area.
Powerline Target Details
The Powerline target area now consists of four known outcrops/subcrops of mineralized gneiss and has a spatial footprint of over 1300 acres (3.7 km by 2.5
km). The 9.98 g/t Au sample was collected in between two known altered gneiss outcrops referred to as the Powerline discovery and Ironwood Outcrops
(Figure 1)
. In between these outcrops, the overlying Tertiary Bear Canyon conglomerate has strong localized alteration in a style similar to the alteration
observed at the Imperial deposit. Follow up sampling and mapping efforts have established a
600m
trend of strongly anomalous gold mineralization
(Figure 1),
with fine gold flakes and nuggets present in shallow stream beds
(Figure 3).
The location of the high-grade trend, as well as the prevalence of coarse gold,
indicates that the mineralizing system is strong and the host rock is near surface along trend.
The Powerline discovery outcrop is interpreted as two WNW-ESE trending thrust sheets which bring crystalline basement host rocks to the surface, analogous
to the geologic setting of the Imperial deposit. Topographically, Powerline has a distinct signature referred to as a "turtleback" feature. All Powerline area
prospects were discovered within this topographic anomaly. The prospect areas are namely the Powerline discovery outcrop, Ironwood outcrop, and
Smoketree subcrop. Each prospect consists of strongly brecciated and altered gneiss along two distinct east to west trends of mineralization.
A property-wide multispectral WorldView-3 alteration mapping survey conducted in 2021 greatly accelerated the rate of new discoveries in the Powerline
target area. This imagery highlighted areas of chlorite alteration, which directed mapping and reconnaissance efforts to the site of the 9.98 g/t Au sample. The
intact Imperial deposit was used to establish the alteration fingerprint of the mineralizing system, which has since been identified in over 11 other areas within
the project boundaries.
Additional evidence of mineralization is provided by four IP survey lines, which intersect the Powerline target area and indicate the presence of a large anomaly
within the subsurface
(Figure 2)
. Similar to the multispectral satellite data, the intact Imperial deposit was used to calibrate the 2021 IP dataset, significantly
increasing the confidence level of these interpretations.
Following the 9.98 g/t Au sample result, additional mapping and sampling is scheduled for Q2 - Q3 2022. Furthermore, a fully permitted person-portable
drilling program will be executed within the Powerline target area. This drilling system produces BQ sized core samples up to 30 ft depth and will be critical in
interpreting the subsurface geology in areas covered by the
Bear Canyon
conglomerate.
Ogilby Target Details
Ground IP data strongly suggests that the mineralizing system present at the Imperial deposit is continuous across the 3km strike length between Imperial and
Ogilby. The Ogilby target is covered by the
Bear Canyon
conglomerate, a young alluvial cover unit that is locally hydrothermally altered. Alteration and
associated low grade gold mineralization in the
Bear Canyon
conglomerate provides a vectoring strategy in areas with no crystalline basement outcrop
exposure. To date, over 9 acres (
330 m
of potential strike) of this type of alteration has been observed in the
Bear Canyon
conglomerate in the Ogilby
segment boundary.
The 0.77g/t Au sample was collected in a dry stream bed topographically isolated from any known occurrences of gold mineralization and firmly establishes a
new drill target in an area currently undergoing the drill permitting process. Other assay highlights in the Ogilby area include a 1.4g/t Au stream sediment
sample.
About the Imperial Gold Project
KORE owns 100% of the Mesquite-Imperial-Picacho District which consists approximately 31,000 acres of 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. 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 and
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 orogenic 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 down dip. It is hosted in a shallowly
southwest dipping, amphibolite grade metamorphic rock suite along a west- northwest trending low-angle regional thrust fault system which 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
Average 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 revised and amended on
June 10, 2021
, prepared by
Terre Lane
and
Todd Harvey
of Global Resource
Engineering and
Glen Cole
of SRK Consulting (
Canada
) Inc. can be found under the Company's profile on SEDAR (
www.sedar.com
) and on the Company's
website.
About KORE Mining
KORE Mining is focused on responsibly creating value from its portfolio of gold assets in
California
, USA. The Company is advancing the Imperial project
towards development while continuing to explore across both district-scale gold assets. Management and Board, along with strategic investor,
Eric Sprott
(26% owner), are aligned with all KORE shareholders with the goal of creating per share value.
Further information on Imperial and KORE can be found on the Company's website at www.koremining.com or by contacting us as
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 Senior Technical Consultant and former 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 nature and implication of sample assay results,
the potential of target areas, the highly prospective nature of the project; the strategy, timing and implementation of permit regional exploration drilling in the
28-kilometer Mesquite-Imperial-Picacho District ("
Regional Exploration Drilling
"); potential actions, behavior or
position of the Bureau of Land Management (the
"BLM
")
;
the underexplored and prospective nature of the Imperial Regional Exploration Drilling area; the
results of the preliminary economic assessments for the Imperial Project, 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; the opportunities of expansion at
the Imperial Project; and the ability to work cooperatively with stakeholders, including 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. In connection with the
forward
looking information contained in this presentation, the Company has made numerous assumptions, including, among others: there being no significant
change to current geotechnical, metallurgical, hydrological and other physical conditions at the Imperial Project; exploration, permitting, and development of the
Imperial Project being consistent with current expectations and planning; the geological, permitting and economic advice that the Company has received is
reliable and is based upon practices and methodologies which are consistent with industry standards; and other planning assumptions. While the Company
considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies.
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. Known risk factors include, among others: the outcome of BLM's review processes for permitting, including the final outcome(s) of BLM's
mineral claim validity examination(s) and administrative review process(es) with respect to the Imperial Zone, including a change to the findings from the
mineral claim validity examination conducted in 2002 for the mill sites at the Imperial Zone, resulting in the Company having to move its future Imperial Zone
project support facilities to areas that are not within the Indian Pass mineral withdrawal area; the possibility that BLM may require and/or conduct further
mineral claim validity examinations with respect to the Imperial project, and the outcome and final determination of such examination could, among other things,
invalidate one or more mining claims; the possibility that BLM or other governmental authority review of the Regional Exploration Drilling program, delays or
changes the Company's plan for Regional Exploration Drilling permitting, which could result, among other things, in delays, additional project requirements,
additional costs and uncertainty of meeting anticipated program milestones; the exploration drill program may not be completed as planned; the need to obtain
additional financing; uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and
uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other government approvals.
Additional risks and uncertainties are described in the "Risks" sections of (i) the Company's Annual Information Form for the year ended
December 31, 2020
prepared as of
April 29, 2021
, and (ii) the Company's Management's Discussion and Analysis for the nine months ended
September 30, 2021
,
both 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.
FIGURE 1: Geologic Map of the Powerline and Ogilby Target Area Prospects (CNW Group/Kore Mining)
FIGURE 2: Georeferenced IP Sections at Powerline and Ogilby Target Areas (CNW Group/Kore Mining)
FIGURE 3: Powerline Target Area Photo Compilation (CNW Group/Kore Mining)
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For further information:
Investor Relations: David Jan, 1-888-407-5450, [email protected]
CO: Kore Mining
CNW 08:00e 17-MAY-22