Loncor's Transformation has begun

Moving up the value curve

in the DRC's goldfields

IMBO PROJECT CONTAINS 2.5 million ounces of OPEN PIT INFERRED RESOURCES

Overview

Total mineral resources at Loncor’s two main properties (Imbo and Makapela) in the Ngayu Greenstone Belt now stand at 3.05 million ounces of inferred mineral resources (33.87 million tonnes grading 2.80 g/t Au) plus 0.614 million ounces of indicated mineral resources (2.205 million tonnes grading 8.66 g/t Au ).  The Imbo Project (84.68% of which is attributable to Loncor) contains 2.503 million ounces (30.65 million tonnes @ 2.54 g/t Au) of inferred mineral resources and the 100% owned Makapela Project has inferred mineral resources of 0.55 million ounces (3.22 million tonnes @ 5.30 g/t Au), plus 0.614 million ounces of indicated mineral resources (2.205 million tonnes grading 8.66 g/t Au ).  Both projects are open at depth and along strike and good potential exists to further increase mineral resources by additional drilling.

On June 10, 2020, a NI 43-101 technical report confirmed the Imbo Project resource increase, having been prepared by Minecon Resources and Services Limited with an effective date of April 17, 2020. The report is entitled "Independent National Instrument 43-101 Technical Report on the Imbo Project, Ituri Province, Democratic Republic of the Congo" and is available on www.sedar.com.

A detailed breakdown of the Imbo and Makapela resources follows.

Figure 1: Location of Imbo Project Area (including Adumbi) and Makapela within the Ngayu Greenstone Belt

Imbo Project Resources - Includes Adumbi, Kitenge and Manzako deposits

On June 10, 2020, a NI 43-101 technical report confirmed the Imbo Project resource increase, having been prepared by Minecon Resources and Services Limited with an effective date of April 17, 2020. The report is entitled "Independent National Instrument 43-101 Technical Report on the Imbo Project, Ituri Province, Democratic Republic of the Congo" and is available on www.sedar.com.

In summary for the Imbo Project, the inferred mineral resource for the Adumbi, Manzako and Kitenge deposits now totals 2,503,000 ounces of gold (30,650,000 tonnes grading 2.54 g/t Au) and is summarised in Table 1 below.

84.68% of this inferred mineral resource is attributable to Loncor via its 84.68% interest in the Imbo Project.

Table 1: Inferred Mineral Resource for the Imbo Project (with an effective date of April 17, 2020)

Deposit

Tonnage

(Tonnes)

Grade

(g/t Au)

Contained Gold

Ounces

Adumbi

28,970,000

2.35

2,190,000

Kitenge

910,000

6.60

191,000

Manzako

770,000

5.00

122,000

TOTAL

30,650,000

2.54

2,503,000

Note: Numbers may not add up due to rounding.

These three resources are within 5 kilometres of each other and would likely be extracted as part of the same life of mine plan.

On April 17, 2020, Loncor announced a significant increase in the contained inferred mineral resource at the Adumbi deposit, the ounces of gold increasing 61% from 1.36 million ounces (19.11 million tonnes @ 2.21 g/t) Au to the stated 2.19 million ounces (see Table 1). Details on the resource increase can be found in the news release dated April 17, 2020 but in summary, the mineral resource increase was due predominantly to the incorporation of work conducted during the period 2014 to 2018 which including additional drilling (see Table 2 and Figure 2), relogging of all previous boreholes, additional surveying, including additional relative density measurements, and a using a gold price of US$1500/oz for calculating resources within a  pit shell.  84.68% of this updated gold resource is attributable to Loncor via its 84.68% interest in the Imbo Project.

As part of the resource increase, all boreholes (153 holes totalling 33,651 metres) from Adumbi were systematically re-logged and all data was put on (Strata Logs software) including core orientations.  The re-logging of drill holes defined the presence of five distinct geological domains in the central part of the Adumbi deposit where the BIF (Banded Iron Formation) unit attains a thickness of up to 130 metres – further detail on the geological zones can be found in the said press release. This assessment was undertaken by the Company’s independent geological consultants Minecon Resources and Services Limited (“Minecon”). The updated estimate for Adumbi was based on a review of the Adumbi deposit including remodelling, grade capping and considering the CIM requirement for mineral resources to have “reasonable prospects for economic extraction”.

Table 2: Details of the four intercepts from the 2017 drill holes that were key to the April 2020 Adumbi Inferred Resource upgrade

Borehole

From(m)

To(m)

Intercept Width(m)

True Width(m)

Grade (g/t) Au

SADD50

434.73

447.42

12.69

10.67

5.51

 

 

 

 

 

 

SADD51

393.43

402.72

9.29

6.54

4.09

 

 

 

 

 

 

SADD52

389.72

401.87

12.15

7.01

3.24

 

419.15

428.75

9.60

5.54

5.04

 

 

 

 

 

 

SADD53

346.36

355.63

9.27

5.70

3.71

 

391.72

415.17

23.45

14.43

6.08

Figure 2: Location of past resource-related drill holes, plus a proposed program of 12 holes that will look to extend the resource later in 2020.

Figure 3: Illustration of Adumbi Pit Shell at varying gold prices and the Block Model

Figure 4: A section through the Adumbi deposit, plus a number of drill intersections

 

 

Additional Resource Potential at Imbo and Recommendations for Further Work

 

There is significant additional resource potential within the Imbo project permit:

  • At the Adumbi deposit, the drilling of an additional 12 core holes (+7,000 metres) later in 2020 has the potential to add and upgrade mineral resources within the US$1,500/oz pit as well as outline potential underground resources below the pit - see Figure 2 for the proposed location of new holes.  After this proposed drilling program has been completed, additional drilling may be undertaken (subject to securing the necessary financing) before a Preliminary Economic Assessment is initiated to include additional mineral resource determinations, metallurgical test work, open pit and potential underground studies, metallurgical plant processing, infrastructural, environmental and economic studies.
  • At the Kitenge and Manzako deposits (see below), additional drilling may also be undertaken (subject to securing the necessary financing) to further define and increase the inferred mineral resources at these deposits.
  • Ongoing exploration including gridding, soil sampling, trenching and channel sampling is planned to be undertaken at the Imbo East prospect, 10 kilometres southeast of Adumbi along the same mineralised trend as Adumbi in order to generate potential drill targets.

Figure 5 : Location of various early-stage exploration targets at Imbo East.  

 

Makapela Project Resources

The Makapela deposit (which is 100%-owned by Loncor) has an indicated mineral resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an inferred mineral resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au). The resource, initially announced in 2012 and updated in 2013, extends to a maximum depth of 500 metres over a mineralized zone of 2.2 kilometres. The zone includes significant artisanal pits that include Sele Sele, North, Main and Bamako pits The geology of the area is characterised by a series of sub-vertical sheared BIF and quartz veins in mafic rock with the principal reefs varying between 1 and 6 metres in width, and based on historic drilling containing gold intersections up to 64 g/t Au in grade.

Figure 6: Location of significant drill intercepts and main areas of artisanal activity at Makapela

In April 2013, the Company announced increases and upgrades of mineral resources at the Makapela prospect compared to the maiden mineral resources in May 2012.  The updated mineral resources incorporated an additional 13 core holes from the initial, inferred-only maiden resource.

Tables 3 and 4 below summarise the current indicated and inferred mineral resources at Makapela using various cut-off grades including a base case economic cut-off grade of 2.75 g/t Au that used a US$1,500/ounce gold price and appropriate cost parameter assumptions and metallurgical recoveries. 

Core drilling began at Makapela in October 2010 and focused on a quartz vein system within a sequence of basalts, thin units of banded iron formation and dolerite sills..  A total of 71 core holes totalling 21,635 metres (including deflections) were used to estimate these indicated and inferred mineral resources at Makapela.  Drilling was focused on three main veins: Reef 1, Reef 2, and Sele Sele that occur over a total strike length of 2.2 kilometres. Core drilling was undertaken on an approximate grid pattern of 80 by 80 metres down to a vertical depth of 240 metres and then on a 160 by 80 metre grid pattern down to a maximum depth of 480 metres.

Table 3: Makapela Indicated Mineral Resources (with an effective date of April 9, 2013)

Cut-off Grade (g/t Au)

Average Grade (g/t Au)

Tonnes (Mt)

Gold Content (Ounces)

1.00

7.45

2.683

643,000

2.00

8.14

2.407

629,700

  2.75*

8.66

2.205

614,200

3.00

8.87

2.130

607,200

4.00

9.97

1.764

565,500

Minimum mining true thickness of 1.5 metres. *Cut-off grade estimated using a US$1,500/ounce gold price with appropriate cost parameter assumptions for mining and other economic factors.

Table 4: Makapela Inferred Mineral Resources (with an effective date of April 9, 2013)

Cut-off Grade (g/t Au)

Average Grade (g/t Au)

Tonnes (Mt)

Gold Content (Ounces)

1.00

3.49

6.944

779,800

2.00

4.29

4.900

675,900

  2.75*

5.30

3.223

549,600

3.00

5.69

2.781

508,700

4.00

7.26

1.640

382,600

Minimum mining true thickness of 1.5 metres. *Cut-off grade estimated using a US$1,500/ounce gold price with appropriate cost parameter assumptions for mining and other economic factors.

In terms of material type, approximately 9% of the total mineral resources are in oxides, 6% in transitional and 85% in fresh rock.

These mineral resource estimates were prepared by independent consultants Venmyn Deloitte ("Venmyn").  The geology and drilling information was analysed, interpreted and estimated by Andrew Clay of Venmyn, a "qualified person" as such term is defined in National Instrument 43-101.  Mr. Clay visited the site to review data collection procedures, geological interpretations and modelling, and estimation using geostatistical techniques.  Venmyn also reviewed the geological and grade continuity to supplement the review of data quality in order to confer mineral resource classification categories to reflect the variable sample coverage.  Venmyn was satisfied that all drilling, sampling, database and geological modelling protocols comply with the standards prescribed by National Instrument 43-101.

The following key assumptions, parameters and methodologies were used to estimate the mineral resources:

  • Datamine Studio 3™ software was the modelling package used for the determination of the mineral resources.
  • Gold grades were determined using ordinary kriging interpolation into a 3-dimensional block model constrained by mineralization wireframes developed from a 2g/t Au sample cut-off grade and a minimum horizontal width of 1.5 metres.
  • The mineralization models were constrained within the wireframe with primary block dimensions of 10 metres N-S (along strike), 5 metres E-W (cross strike direction) and 10 metres in the vertical direction.
  • Grade interpolation was effected separately for the individual mineralized zones and Datamine's dynamic anisotropy process was employed to control the orientation and axes of the search volumes.
  • The down dip extrapolations were restricted to three times the variogram range from the last drillhole used in the interpolation and the model was trimmed off at a maximum depth of 500 metres from the surface for reporting purposes.
  • Portions of the resource were re-classified from Inferred to Indicated based on increased geological confidence and grade continuity due to data quality and data density following infill drilling.  Criteria for Indicated are sufficient samples within one variogram range to achieve valid local estimates, in respect of positive kriging efficiency.

Drill cores for assaying were taken at a maximum of one metre intervals and were cut with a diamond saw with one-half of the core placed in sealed bags by Company geologists and sent to the SGS Laboratory (which is independent of the Company) in Mwanza, Tanzania.  The core samples were then crushed down to minus 2 mm, and split with one half of the sample pulverized down to 90% passing 75 microns. Gold analyses were carried out on 50g aliquots by fire assay. In addition, checks assays were also carried out by the screen fire assay method to verify high-grade sample assays obtained by fire assay. Internationally recognized standards and blanks were inserted as part of the Company's internal QA/QC analytical procedures.

A total of 2,614 core samples were taken to determine relative density measurements for the various reefs and oxide, transitional and fresh rock components.

Qualified Person

Peter N. Cowley, who is President of Loncor and a "qualified person" as such term is defined in National Instrument 43-101, has reviewed and approved the technical information on this web site.

Technical Reports

Certain additional information with respect to the Company’s Makapela Project is contained in the technical report of Venmyn Rand (Pty) Ltd dated May 29, 2012 and entitled "Updated National Instrument 43-101 Independent Technical Report on the Ngayu Gold Project, Orientale Province, Democratic Republic of the Congo".  A copy of the said report can be obtained from SEDAR at www.sedar.com and EDGAR at www.sec.gov.  Certain additional information with respect to the Imbo Project is contained in the technical report of Roscoe Postle Associates Inc. dated February 28, 2014 and entitled "Technical Report on the Somituri Project Imbo Licence, Democratic Republic of the Congo", and in the more recent NI 43-101 technical report prepared and filed on SEDAR on 10 June, 2020 by Minecon Resources and Services Limited with an effective date of April 17, 2020. The Minecon report is entitled "Independent National Instrument 43-101 Technical Report on the Imbo Project, Ituri Province, Democratic Republic of the Congo". Both reports on the Imbo project are available on www.sedar.com.

 

 

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