April 28, 2021

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Loncor Gold Inc. (TSX:LN; OTCQX:LONCF; FSE:LO51) is a Canadian gold exploration company focused on projects within a 3,500km2 area on the Ngayu Greenstone Belt in the northeast of the Democratic Republic of the Congo (the “DRC”). The Loncor team has over two decades of experience in operating in the DRC and has developed a clear approach to maximise the potential at Ngayu.

1. Developing Adumbi - Loncor's Flagship High Grade Gold Deposit.

The Adumbi gold deposit is found within Loncor's 84.68% owned Imbo Project area. Imbo has a 3,466 million ounce inferred resource base (dominated by Adumbi’s open pit resource) which Loncor believes will grow significantly through its ongoing drill program. The relatively high grade remains a key positive, with the early-stage indications suggesting Adumbi holds the potential of cash costs similar to the nearby Barrick managed Kibali mine - an operation that had ASIC costs per ounce of US$778/oz in 2020, the lowest ASIC costs of any of Barricks' six African mines.

The Adumbi Deposit - A Company Maker as High-Grade Resources Expand

Adbumbi deposit [photo]
Adbumbi deposit [photo]

Loncor continues to expand its high-grade Adumbi resource through an ongoing 7,000-meter diamond drill program. In April 2021 Loncor announced that the first six holes added over 900,000 ozs of resource to Adumbi, assuming a US$1500/oz pit outline. Due to the grade of the intercepts the grade increased marginally to 2.37 g/t Au, an excellent grade to potentially support a low cost, high-value project. The current inferred mineral resource at Adumbi is 3.15 million ozs with Loncor controlling 84.68% of the project.

Drilling of the underground potential is ongoing with the initial holes suggesting the deposit is increasing in grade as it deepens. The deepest hole is likely to be approximately 800 metres vertically below surface. In conjunction with assaying the drill results, a Preliminary Economic Assessment (PEA) will be conducted during the second half of 2021.

Given the economics at the nearby Barrick operated Kibali operation (where the pit mined grade equates to the grade similar to the inferred resource grades we reflect at Adumbi), we believe that the PEA of Adumbi could return economics far in excess of the value currently reflected within Loncor.

2. Explore and Develop Loncor's other projects within Ngayu

Separate from Adumbi, Loncor controls a number of other gold deposits within the Ngayu Greenstone Belt. Two other deposits, Kitenge and Manzako, have been delineated along strike from Adumbi on the Imbo Project. There is the potential that they could be incorporated into a mine plan for Adumbi.

At Kitenge, 4 kilometres southwest of Adumbi, drilling has outlined inferred resources of 191,000 ounces of gold grading 6.6 g/t Au while at Manzako, an inferred resource of 122,000 ounces of gold grading 5.0 g/t Au has been outlined. Mineralization at both Kitenge and Manzako remain open at depth and additional drilling is warranted to increase these mineral resources.

Table 1 – Summary of Loncor’s Gold Resources

Loncor controls 4.6 million ounces of resources.
Potential to grow further with Adumbi underground resources.

Loncor's indicated mineral resource - (Total & Attributable Ounces)
Deposit +
Attributable %
Tonnes
(million)
Gold Grade
(g/t Au)
Contained Gold
(000 oz)
Attributable Gold
(000 oz)
Makapela - 100% 2.21 8.66 614 614
Total Indicated 2.21 8.66 614 614
Loncor's inferred mineral resource - (Total & Attributable Ounces)
Deposit +
Attributable %
Tonnes
(million)
Gold Grade
(g/t Au)
Contained Gold
(000 oz)
Attributable Gold
(000 oz)
Adumbi - 84.68% 41.316 2.37 3,153 2,670
Kitenge - 84.68% 0.91 6.60 191 162
Manzako - 84.68% 0.77 5.00 122 103
Total Imbo Project 42.996 2.51 3,466 2,935
Makapela - 100% 3.22 5.30 550 550
Total Inferred 46.216 2.70 4,016 3,485

* Used US$1500/oz gold price for pit optimization and appropriate cost and cut-off assumptions

Ten kilometres to the southeast of Adumbi, exploration including soil sampling, grab and channel sampling, have outlined four prominent mineralized trends at Esio Wapi, Paradis, Museveni and Mungo Iko. At Esio Wapi, a prominent 1.9-kilometre long soil geochemical anomaly is associated with banded ironstones similar to Adumbi with channel sampling outlining a mineralized zone grading 1.59 g/t Au over 19.80 metres. Loncor's geologists will be undertaking further exploration of these four mineralized trends with a view to generating drill targets later in 2021.

Another target of interest is Makapela, a 100% owned project approximately 50 km from Adumbi. Mineral resources were previously delineated via 65 diamond drill holes, the indicated resource totals 614,000 ozs at 8.66 g/t Au, and the inferred resource contains 550,000 ozs at 5.30 g/t Au. This 3-kilometre deposit outcrops at the surface and is open at depth. Selected previous drill intercepts included 4.30 metres true width @ 64 g/t Au and 2.53 metres true width @ 32.6 g/t Au. Given such encouraging results, Loncor will look at ways of further developing the understanding of the deposit, potentially through further drilling. Makapela has the potential to deliver high-grade gold ores to a central processing facility at Adumbi.

Loncor's emerging assets - Ongoing resource growth plus own exploration

Loncor's 2021 estimages [graph]
Read 1927 times Last modified on June 04, 2021
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