Posted by AGORACOM
at 12:13 PM on Friday, May 15th, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 3.6 million high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 814,000 ounces of gold in 2019. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Management owns 29% Click Here for More Info
New major gold discoveries have been on a decline this past decade, according to a report by S&P Global Market Intelligence.
During the past three years there were no major new gold discoveries, the report said. And during the past decade, there were only 25 new major discoveries.
Dwindling numbers are due to miners focusing on exploration around older mines, S&P Global said.
“The lack of new discoveries is the result of exploration focusing on older discoveries and later-stage assets,†wrote S&P Global principal research analyst Kevin Murphy. “While there are still plenty of gold assets to be developed, the lack of new major deposits being discovered means that the project pipeline is increasingly short of large, high-quality assets needed to replace ageing major gold mines.â€
The 25 major deposits discovered in the last decade represent 154.3 million ounces or only 7% of all gold discovered since 1990. According to the S&P Global data, there were 278 major new gold deposits found between 1990-2019, totaling 2.19 billion ounces of gold reserves.
A major factor responsible for the drastic decline in the last ten years is the budget dedicated to new discoveries, Murphy pointed out. Instead of looking for new discoveries, explorers were zeroing in on known deposits around operating mines.
“The total for the past decade might only rise to about 266 million ounces once subsequent exploration efforts are completed,†Murphy noted.
On top of lower budgets for new explorations, the COVID-19 outbreak is likely to negatively contribute to the lower discoveries rate going forward.
“We do not expect the trend to reverse in the near term,†Murphy stated. “We expect quite the opposite in 2020 as COVID-19 impacts exploration plans by companies of all sizes.â€
The junior miners’ exploration programs are likely to be affected the most by the coronavirus. “The largest impact will be reductions due to lockdowns or companies exercising caution with their personnel. We expect gold budgets to decline about 20% in 2020,†Murphy said.
And this is not just in the gold sector with Murphy estimating total mining exploration spending to fall in 2020.
“Producers will not be spared, as they face lower metals prices and country-wide closures in areas in which they operate, sending their budgets an estimated 23% lower. As a result, we now expect global exploration budgets to fall 29% in 2020 to a total of US$6.9 billion,†Murphy said in another report published in April.
Posted by AGORACOM
at 9:34 AM on Thursday, May 14th, 2020
TORONTO, May 14, 2020 (GLOBE NEWSWIRE) — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) is pleased to provide an update on its activities within the Ngayu Greenstone Belt, where the Company has a dominant foot-print through its joint venture with Barrick Gold (Congo) SARL (“Barrickâ€) and on its own majority-owned exploration licences and exploitation concessions, including the Imbo exploitation concession (76.29%) that contains the Adumbi deposit and its wholly-owned exploration licence containing the Makapela deposit
Barrick Joint Venture
Loncor recently received the quarterly exploration report from joint venture partner Barrick for the first quarter of 2020. As announced in February 2020, joint venture partner and operator Barrick had identified a number of priority drill targets within the 1,894 square kilometre joint venture land package at Ngayu and drilling was due to commence in March. Some delays were encountered at the border due to additional permitting requirements resulting from the COVID-19 situation but the two drill rigs are now at the Kibali mine site and are planned to be mobilised to Ngayu in the second quarter.
The first drill target is expected to be at Anguluku where an initial six core holes are planned. Depending on results, additional holes will be drilled at Anguluku or the drills will be moved to Salisa/Lybie where an initial twelve holes are planned. Other targets to be drilled include Yambenda/Yasua (see Figures 1 and 2 below).
A large component of Barrick’s Q1 2020 exploration program was focused on reconnaissance follow up. The goal of these reconnaissance studies was to delineate new targets for prioritisation and assess existing targets to advance them to the drilling stage or remove them from the resource triangle. At the time of reporting, of the eleven Areas of Interest identified during the last quarter, eight had been evaluated for potential of hosting tier 1 deposits. Two of the eight assessed did not pass the preliminary indicators to host tier 1 deposits. This quarter’s further assessment was completed on the Andagbowa, Zunguluka, Makapela West and Imva South blocks. At Andagbowa, two new targets were delineated for follow up work.
Andagbowa is located to the northeast corner of the Ngayu concession and about 32 kilometres northeast of the Mambati base camp. It is characterised by complex lithological and structural settings, which includes the presence of folded and fractured banded ironstone formation (“BIFâ€) and the hinge of a belt scale fold. Previous work has shown localized low grade BLEG anomaly basins, intense alluvial artisanal activities and a lack of quartz pebbles in the streams which could suggest potential for disseminated style gold mineralization.
Exploration fieldwork completed during the quarter at Andagbowa aimed at gaining geological characteristics of the area in order to evaluate its potential and perspectivity for future detailed work. The fieldwork undertaken included preliminary exploration study combining geological, structure and alteration mapping and sampling for gold analysis. Structural data confirmed the interpreted open folding system with NNW fold axis occurring within the area close to the Makapela Intrusive. The identified NE-SW, E-W and NW-SE moderate to steeply dipping mineralized sheared zones are aligned along the regional fold and parallel to the interpreted domain boundary subsidiary fault which could play a part in controlling the distribution of gold mineralization, either hosting mineralization or by acting as conduit for hydrothermal fluids.
The preliminary exploration work at Andagbowa area revealed two potential prospects for future work; namely Bon Marche and Tozali. The two prospects are characterized by sheared and brecciated rocks including BIF containing either stockworks of quartz veinelts or sheeted stringers of silica associated with pervasive sericite and weak disseminated fine to coarse sulphides.
NE and ENE trending mineralized shear zones (up to 12 metres wide) containing sheeted quartz stringers and veinlets associated with pervasive sericite hosted by metasediment rock. Each of the two shear zones is mined along 100 metre length by artisanal miners. Assay results of up to 2 metres @ 1.07g/t Au was intercepted from channel sampling.
2.5 kilometres folded and fractured BIF with weak disseminated sulphide and pervasive silica with 0.83 g/t Au from litho samples.
The potential hinge at Bon Marche is located 1.5 kilometres north of soil anomalies localized almost within the same hinge zone.
1.5 kilometre potential NW trending brecciated BIF containing disseminated boxworks and stockworks of quartz-carbonate stringers. Received results revealed anomalised values up to 0.76g/t Au.
At the beginning of the quarter, LIDAR (Light Detection and Ranging remote sensing) surveys were also conducted on four exploration blocks in the joint venture. The benefits of LIDAR data compared to traditional aerial-photo-based interpretation are in more detailed identification of possible surface deposits, mapping lithology, structures and more precise edging of the geomorphologies, which could hold large scale deposits. This method also reflects more accurately the true ground surface in areas of dense vegetation. The results of the LiDAR surveys are being collated with other existing geological and geophysical layers to further generate and prioritise more targets.
Imbo Exploitation Permit (Loncor 76.29%)
Outside of the Barrick joint venture, exploration activities have continued on Loncor’s Imbo exploitation concession (76.29%) in the east of the Ngayu belt. Fieldwork by Loncor geologists have focused on the Imbo East prospect 12 kilometres west-southwest of Adumbi along the same mineralised structural trend. Gridding, soil and rock sampling are being undertaken over a strike length of 3.6 kilometres. Additional follow up will be dependent on assay results which are pending.
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 in this press release.
About Loncor Resources Inc. Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the Democratic Republic of the Congo (the “DRCâ€). The Loncor team has over two decades of experience of operating in the DRC. Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base. The area is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrickâ€). In 2019, Kibali produced record gold production of 814,000 ounces at “all-in sustaining costs†of US$693/oz. Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of any discovery in 1,894 km2 of Loncor ground that they are exploring. As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. In a recent announcement Barrick highlighted six prospective drill targets and are moving towards confirmation drilling in 2020. Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.
In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick. Barrick has certain pre-emptive rights over the Makapela deposit. Loncor’s 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). Adumbi and two neighbouring deposits hold an inferred mineral resource of 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), with 76.29% of this resource being attributable to Loncor via its 76.29% interest in the project.
Resolute Mining Limited (ASX/LSE: “RSG”) owns 26% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering.
Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com.
For further information, please visit our website at www.loncor.com, or contact: Arnold Kondrat, CEO, Toronto, Ontario, Tel: + 1 (416) 366 7300.
Figure 1 Ngayu Belt. Developing Prospectivity, Work Programs and Drill Targets for 2020
Posted by AGORACOM-JC
at 8:43 PM on Sunday, May 10th, 2020
Loncor Resources ( LN:TSX ) is the preeminent gold exploration company to own. Armed with a Barrick JV on their 200km NGAYU Greenstone property anticipates a maiden drill program on multiple targets in 2020. Loncor controls 3.6 million ounces of high grade gold outside of this relationship.
If the JV and Ounces aren’t enough to grab your attention, then look at ownership; African Majors own impressive pieces of Loncor:
Resolute Mining owns 27% and has a 30% ROFR on any Loncor financing,Â
Posted by AGORACOM
at 10:27 AM on Friday, May 8th, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 3.6 million high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 814,000 ounces of gold in 2019. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Management owns 29% Click Here for More Info
Concerns about the health of the global economy due to the coronavirus pandemic have boosted ‘safe-haven’ gold by 12%
Barrick Gold Corp posted a nearly 55 per cent rise in quarterly profit on Wednesday as gold prices surged, bolstering its ability to snap up mines including in copper, its chief executive said.
Concerns about the health of the global economy due to the coronavirus pandemic have boosted “safe-haven†gold by 12 per cent so far this year, while copper, seen as a bellwether for economic health, is down about 15 per cent.
Barrick CEO Mark Bristow has previously said the world’s No. 2 gold miner could raise its exposure in copper because of its expected higher use in electrification.
He added on Wednesday the relative price performance between copper and gold made deals more attractive.
“(A stronger balance sheet) improves our capacity to take up opportunities that might arise in the short to medium term given the dynamic nature of the global economy,†Bristow told Reuters.
He did not elaborate, but has expressed an interest in acquiring Freeport-McMoran Inc’s flagship Grasberg mine.
Barrick, which maintained its quarterly dividend of 7 cents per share, trimmed its annual production forecast for gold after shutting its mine in Papua New Guinea.
The Canadian miner now expects attributable gold production of 4.6-5.0 million ounces versus 4.8-5.2 million previously.
The government of Papua New Guinea announced in April it would not renew a 20-year special mining lease for the Porgera gold mine, which is jointly owned by Barrick and China’s Zijin Mining, due to environmental damage and social unrest.
Barrick (Niugini) Limited, the local venture in which both miners have a 47.5 per cent stake, had produced about 597,000 ounces of gold in 2019 from the Porgera mine.
Barrick has said it will contest the move, which it regards as “tantamount to nationalization without due process,†and in the meantime has placed Porgera on temporary care and maintenance, while suspending 2020 guidance for the mine.
Bristow said a mediator would be appointed to help negotiations if initial talks between the government and Barrick failed.
The company, with operations in North and South America and Africa, has not closed any of its mines due to coronavirus restrictions which have hit competitors.
Larger rival Newmont, which was forced to shutter some mines in Canada and South America, warned on Tuesday of a financial hit in the second quarter.
Barrick’s first quarter production fell 9 per cent to 1.25 million ounces. Excluding one-off items, Barrick reported a profit of 16 cents per share, in line with analyst estimates.
Posted by AGORACOM
at 10:07 AM on Wednesday, April 29th, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 3.6 million high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 814,000 ounces of gold in 2019. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Management owns 29% Click Here for More Info
“Investment appetite in the resources sector is low and investment hurdles have been raised which means that only the best investment jurisdictions, like the Democratic Republic of Congo, will receive much needed investment for growth.â€
This is according to Dr Tony Harwood, president and CEO of Montero Mining and Exploration.
“The slow-down in the global economy has depressed metal prices and the advent of the Coronavirus (COVID-19) has also exacerbated this, bringing many countries into a negative growth and some in recession,†Dr Harwood, who is also an ambassador for DRC Mining Week, continues.
In addition, the implementation of the new DRC mining legislation has caused concerns with existing investors and potentially new foreign investors to the DRC.
Despite these challenges progress made on some very exciting mining and exploration projects, notably developments of the world class Kamoa-Kakula copper project and Kipushi zinc project, notes Harwood.
“Other highlights for the DRC include the development of the high grade Bisie Tin project as well as seeing gold production being achieved at Kibali gold mine,†Harwood points out.
Positive approach needed
In addressing the challenges surrounding the country’s divisive mining legislation Harwood encourages current investors to discuss changes in a positive manner with government for an equally equitable solution for both parties.
Harwood believes the development of the Kamoa-Kakula copper project will open the Katanga province and encourage further exploration and development not only in this area but the country as well.
“Its success will aid greatly in the development of the DRC mining sector not only from a production perspective but also by increasing employment, skills transfers, taxes paid, infrastructure development both in the DRC and in neighbouring countries,†states Harwood.
Looking to the future Harwood is adamant good mining legislation with investor incentives will boost local capital and entice foreign investors will ensure growth and if the DRC gets this right it will become the largest mining economy in Africa.
Harwood founded and listed the company on the TSX Venture exchange. He is also a non-executive director of private and public companies largely operating in Africa. In all he has listed three companies over the last 10 years all of which operate in Africa from a base in Africa.
Between 2006 and 2009 he was the President and CEO of Africo Resources, a company attempting to develop a high-grade coper project in Katanga.
During the exploration and development period the company entered various cooperative community development programmes with local villages surrounding the project.
These programmes largely revolved around agriculture and the company assisted in setting up community co-operatives for growing vegetables to be sold to the company and the surrounding communities. “In addition, we also set up health screening initiatives with the DRC health administration in and around our project area,†explains Harwood.
“In 2007 to 2008 we also distributed 328 wheelchairs for children. These had been designed for use in the country and had thick rubber tyres – this brought children a new mobility and enabled them to get to school and participate in their communities,†he concludes.
Posted by AGORACOM
at 12:45 PM on Monday, April 27th, 2020
LN:TSX
3.6 Million High Grade Gold Ounces in the Congo
Imbo Concession: Loncor controls 76.29% of the Imbo Project.
3 Seperate Deposits:
Adumbi, Kitenge and Manzako comprise 2.5 million ounces of gold
30.65 million tonnes grading 2.54 g/t Au
76.29% of the gold resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
2020 Exploration Strategy:
Increase the mineral resources on the Imbo Project by undertaking additional drilling
Initiate Preliminary Economic Assessment on the Adumbi deposit.
Increase and upgrade mineral resources within the open pit
Develop underground potential, mineralization remains open at depth
Makapela Project, NGAYU Belt: (100% Loncor Owned)
Indicated mineral resource of 614,200 ounces of gold
(2.20 million tonnes grading 8.66 g/t Au)
Inferred mineral resource of 549,600 ounces of gold
(3.22 million tonnes grading 5.30 g/t Au).
Barrick JV in the NGAYU Belt:
Ngayu Belt is 200km southwest of the Kibali gold mine, operated by Barrick Gold
Kibali produced 814,000 ounces at “all-in sustaining costs†of US$693/oz 2019
Barrick highlighted the Ngayu Greenstone Belt an area of particular exploration interest
Barrick earns 65% of any exploration discovery in 1,894 km2 of Loncor ground in the JV.
Barrick manages and funds exploration until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick.
Barrick highlighted 6 signifcant drill targets and is moving toward drilling in 2020
Loncor Resources Inc.
Loncor a Canadian gold explorer controlling over 3.6 million high grade ounces outside of a Barrick JV in the DRC. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 814,000 ounces of gold in 2019. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27%, Loncor Management owns 29%
Posted by AGORACOM
at 11:08 AM on Thursday, April 23rd, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info
Ronald Peter Stöferle’s keynote speech at this year’s virtual World Gold Forum 2020.
Unlimited quantitative easing and fiscal stimulation. Central banks and governments are on the test bench. Learn why this is the perfect breeding ground for gold, commodities and mining stocks.
A golden future lies ahead!
Topics: Black Swan or Grey Rhino?
In recent weeks, the news filled with Corona, experts and governments have been throwing around the term Black Swan. The Black Swan is a metaphor that describes an unpredictable, rare event that causes great harm. Ronald Stöferle, on the other hand, is of the opinion that the corona virus is more like a grey rhinoceros. A rare but highly probable but neglected event.
Central banks and governments under scrutiny We are in the process of making history. Never before has there been a crisis in which so many monetary and fiscal interventions by central banks and governments have been made in such a short time. Ronald postulates that the central banks, as they have already announced, will do everything possible to prevent deflation. The markets and the population should therefore be prepared for anything. From unlimited quantitative easing, to ideas like the universal basic income.
Gold on the rise again. There is a general change on the markets. Gold has reappeared on the scene. Ronald shows how gold has done exactly what it is supposed to do. Stabilize your portfolio and protect your assets from a drastic decline in stock values. He also postulates that the gold price has already reached its lowest point. Inflation or Stagflation Even if it was in fashion to declare inflation dead, it seems to be returning. Ronald explains that our in-house inflation indicator shows that inflation could be about to make a comeback. The markets are unlikely to feel this until the curfew is lifted and there is suddenly much more money in the system.
Gold stocks back in the bull market The comparison between the Great Depression and now does not seem to limp. Ronald postulates a good environment for gold mining stocks, as was the case during the Great Depression. The Golden Future Gold has returned to the public eye. We are currently in the public participation phase.
As Ronald explains that current climate, both by the massive interventions and the general crisis, are the perfect breeding ground for gold and commodities in general.
Posted by AGORACOM
at 8:52 AM on Wednesday, April 22nd, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info
The analysts noted that the Federal Reserve: “Can’t print gold.â€
(Kitco News) – Bank of America commodity analysts just keep getting more bullish on gold as the weeks go by.
The bank said in a report last week that gold ’s technical momentum could drive prices to an all-time high this year; in a new report published Tuesday, analysts have officially increased their bullish outlook, saying that gold prices could hit $3,000 within 18 months, a 50% increase from its previous forecast
Along with increasing its 18-month target, the bank said that it sees gold prices averaging $2,063 an ounce in 2021.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,†the analysts said.
Although a strong U.S. dollar and weak physical jewelry demand in Asia could be headwinds for the gold market, the analysts said that the Federal Reserve has provided enough momentum to propel investment demand and prices higher.
Economists at Bank of America have warned that the Federal Reserve’s balance sheet as a percentage of GDP could rise 20% to 40% this year. According to reports last week, the Federal Reserve’s balance sheet hit a record high of $6.42 trillion, up more than 50% from levels reported during the first week of March.
The analysts noted that the Federal Reserve: “Can’t print gold.â€
“Beyond traditional gold supply and demand fundamentals, financial repression is back on an extraordinary scale. Rates in the US and most G-10 economies will likely be at or below zero for a very long period of time as central banks attempt to push inflation back above their targets,†the analysts said.
Although investor sentiment has improved slightly during the last few weeks, the bank’s analysts said that there is still more bad news ahead. They noted that economists are forecasting a 30% decline in the U.S. GDP in the second quarter as the economy was grounded after all non-essential businesses were closed and citizens were requested to stay at home.
“As central banks rush to expand their balance sheets and backstop the economy, a lot of risks could effectively be socialized, boosting the appeal of gold,†the analysts said.
Weak economic growth does not bode well for equity markets, the analysts said, adding that this will be another factor supporting higher gold prices.
“The positive equity/gold correlations are a possible sign that equity markets may not have fully bottomed and that the gold market has further room to run, in our view. The trigger here could be an extension of lockdown restrictions over the next few weeks,†the analysts said.
Despite the strong bullish sentiment, Bank of America does see some risks in the marketplace. Along with weak physical demand, the analysts said that central bank gold purchases are expected to slow this year.
They also noted that lower market volatility could also weigh on gold prices.
Posted by AGORACOM
at 8:41 AM on Friday, April 17th, 2020
Compared to the inferred mineral resources of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au) outlined in January 2014
On three separate deposits, Adumbi, Kitenge and Manzako at Imbo, inferred mineral resources have now increased by 49% to 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au)
Total mineral resources at Loncor’s properties in the Ngayu belt now stand at 3.05 million ounces of inferred mineral resources
TORONTO, April 17, 2020 (GLOBE NEWSWIRE) — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) is pleased to announce a 49% increase in mineral resources at its Imbo Project (Loncor 76.29%) in the D.R. Congo.
Compared to the inferred mineral resources of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au) outlined in January 2014 by independent consultants Roscoe Postle Associates Inc. (“RPAâ€) on three separate deposits, Adumbi, Kitenge and Manzako at Imbo, inferred mineral resources have now increased by 49% to 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), this increase coming from the Adumbi deposit. This assessment was undertaken by the Company’s independent geological consultants Minecon Resources and Services Limited (“Mineconâ€). 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 extractionâ€. 76.29% of this updated gold resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
Combined with the Company’s Makapela Project (100%) (see Figure 1), total mineral resources at Loncor’s properties in the Ngayu 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 ).
Commenting on today’s inferred mineral resource increase on the Imbo Project, Loncor’s President Peter Cowley said: “We are very encouraged by the significant increase in mineral resources at the Adumbi deposit, which was developed from exploration conducted during the period 2014-17, following on from the recommendations from the independent RPA study in 2014. We now have a clear strategy going forward to increase the mineral resources on the Imbo Project by undertaking additional drilling and advancing the project up the value curve by initiating a Preliminary Economic Assessment on the Adumbi deposit. Significant potential still exists at Adumbi to increase and upgrade mineral resources within the open pit as well as underground potential since the mineralization remains open at depth.â€
As outlined in the Company’s press release dated January 28, 2020, Loncor has been focussing on the Adumbi deposit (see Figures 2 and 3), where Minecon had identified significant resource upside potential from additional exploration evaluation, including drilling that was undertaken during 2017. Much of this exploration work was undertaken following on from the recommendations made by RPA in their 2014 NI 43-101 technical report and included:
Additional Drilling RPA recommended additional drilling at Adumbi to test the down dip/plunge extent of the mineralization. In 2017, four deeper core holes (see Figures 3 and 8) were drilled below the previously outlined RPA inferred resource over a strike length of 400 metres and to a maximum depth of 450 metres below surface. All four holes intersected significant gold mineralization in terms of widths and grade and are summarised below:
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
Due to funding constraints, no follow up drilling was undertaken at the Adumbi deposit after 2017.
Survey and Georeferencing All the Adumbi drill hole collars, trenches and accessible adits and adit portals were accurately surveyed and the data appropriately georeferenced. In addition, all accessible underground excavations and workings were accurately surveyed.
Re-logging of All Drill Holes All boreholes (153 holes totalling 33,651 metres) from Adumbi were systematically relogged 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 (see Figures 3 and 4). From northeast to southwest these are:
Upper BIF Sequence: an interbedded sequence of BIF and chlorite schist, 45 to 130 metres in thickness.
Carbonaceous Marker: a distinctive 3 to 17 metre thick unit of black carbonaceous schist with pale argillaceous bands.
Lower BIF Sequence: BIF interbedded with quartz carbonate, carbonaceous and/or chlorite schist in a zone 4 to 30 metres in thickness.
Footwall Schists: similar to the hanging wall schist sequence.
In the central part of the Adumbi deposit, three main zones of gold mineralization are present (see Figures 5 and 6). These include the following mineralization:
within the Lower BIF Sequence;
in the lower part of the Upper BIF Sequence. Zones 1 and 2 are separated by the Carbonaceous Marker, which is essentially unmineralized; and
a weaker zone in the upper part of the Upper BIF Sequence.
There is a higher-grade zone of gold mineralization termed the Replaced Rock Zone (“RP Zoneâ€) associated with alteration and structural deformation that has completely destroyed the primary host lithological fabric. The RP Zone occurs in the lower part of the Upper BIF package and in the Lower BIF package, and transgresses the Carbonaceous Marker, located between the Upper and Lower BIF packages, both along strike and down dip (see Figures 3 and 4).
Relative Density (“RDâ€) Measurements The increase in the sample population coupled with the application of a more rigid RD determination procedure based on recommendations from the RPA resource study, indicates that the new RD measurements from both mineralized and unmineralized material and from the various material types and lithologic units have improved the confidence in the relative RD determination to be applied to any resource estimates. Relative to the 6 oxide RD measurements used for tonnage estimation in the RPA model, 297 oxide RD measurements within the mineralized domain were undertaken during the review work. For the transition and fresh material, equal number of determinations relative to the previous RD sample volumes were undertaken with the review process employing more rigid RD determination procedures.
Table 1 below indicates significate positive variance between the previous model RD and the reviewed work for the oxide and transition materials.
Table 1: Summary of Previous and Updated Mineralised Average RD Measurements for Adumbi Deposit
Material Type
RD used in Previous RPA Model
RD Determinations Used in Current Model
RD Variance (%)
Oxide
1.80
2.45
36.1
Transition
2.20
2.82
28.2
Fresh
3.00
3.05
1.7
Oxidation and Fresh Rock Surfaces The re-logging of the core as per the RPA recommendations identified major differences between the depths of Base of Complete Oxidation (BOCO) and Top of Fresh Rock (TOFR), and the depths used by RPA in the 2014 model. In the RPA model, the BOCO was negligible and the TOFR corresponded approximately to the re-logged BOCO. The deeper levels of oxidation that were observed during the re-logging exercise have had positive implications with respect to ore type classification and associated metallurgical recoveries, mining and processing cost estimates.
Adit Sampling and Georeferencing Following the accurate surveying of the 10 historical adits and appropriately georeferencing, the 796 adit samples (1,121 metres in total) when applied have positive implications on the data spacing and classification of mineral resources at the Adumbi deposit.
Quality Control and Quality Assurance Assessment of assay standards and blanks of the Adumbi deposit by RPA indicated that 1,014 samples within some batches failed QC and were identified for re-assay. A total of 616 pulps and 382 quarter core samples were retrieved for re-assay. The samples were submitted to the SGS Laboratory (which is independent) in Mwanza, Tanzania in November 2014, together with international reference material from Rocklabs (8 per 100 samples) and blanks (4 per 100 samples). This was undertaken to ensure the samples passed internal QA/QC analytical procedures.
For the post 2014 drilling campaign, 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 in Mwanza. The core samples were then crushed at the laboratory 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 internal QA/QC analytical procedures.
Minecon has reviewed the quality of all the assay data used for the modelling and estimation of resources to ensure that they all passed the Company’s internal QA/QC criteria.
Gold Price A gold price of US$1,200 per ounce was used in 2014 for the RPA study. To reflect more recent market conditions, a gold price of US$1,500 per ounce has been used in Minecon’s resource determinations.
In summary, this additional 2014 to 2017 information resulted in better quantification with improved confidence in updating the geological model for grade interpolation and pit optimisation studies to determine mineral resources for the Adumbi deposit.
Geological Modelling and Grade Estimation The Adumbi 3-Dimensional model was constructed by Minecon in collaboration with on site geologists using cross sectional and horizontal flysch plans of the geology and mineralization (see Figures 3 and 4) and was used to assist in the constraining of the 3-D geological model. The mineralization model was constrained within a wireframe at 0.5 g/t Au cut-off grade (see Figures 5 and 6). Grade interpolation was undertaken using:
2 metre sample composites capped at 18 g/t Au to improve the reliability of the block grade estimates.
Ordinary Kriging to interpolate grades into the block model.
Relative densities of 2.45 for oxide, 2.82 for transitional and 3.05 for fresh rock were applied to the block model for tonnage estimation.
Pit Optimisation Parameters To constrain the depth extent of the geological model and any mineral resources, an open pit for the Adumbi deposit was constructed based on the following pit optimisation parameters:
A long-term gold price of US$1,500 per ounce.
Block size: 8 metres x 8 metres x 8 metres.
A two-metre minimum mining width and a maximum of four metres of internal waste was applied.
Mining dilution of 100% of the tonnes at 95% of the grade.
Ultimate slope angle of minus 45 degrees.
Metallurgical recoveries of 95% for oxide and transitional material and 90% for fresh rock (in the RPA study a fresh rock metallurgical recovery of 95% was used while Minecon reduced this to a more conservative 90% even though no additional metallurgical testwork was undertaken after the RPA study).
Average mining cost of US$2.5/t mined.
Mineral resources were estimated at a block cut-off grade of 0.9 g/t Au constrained by a Whittle pit with processing and G&A costs of US$30/t.
Transport of gold and refining costs equivalent to 4.5% of the gold price.
No additional studies on depletion by artisanal activity was undertaken since the 2014 RPA study and the same total amount of material was used by Minecon.
The results of the Adumbi pit optimisation (see Figure 7) indicated an inferred mineral resource within the pit of 2.19 million ounces of gold (28.97 million tonnes at 2.35 g/t gold) (see Table II below).
Mineral Resources Within the US$1,500 pit shell (Figure 7), the following is classified as inferred mineral resource at the Adumbi deposit:
Table II: Inferred Mineral Resource for the Adumbi Deposit (with an effective date of April 17, 2020)
Material Type
Tonnage (Tonnes)
Grade (g/t Au)
Contained Gold Ounces
Oxide
3,820,000
2.44
300,000
Transitional
3,320,000
2.69
290,000
Fresh
21,820,000
2.28
1,600,000
TOTAL
28,970,000
2.35
2,190,000
Note: Numbers may not add up due to rounding.
The additional drilling information, the higher RD determinations and the increased gold price, have contributed significantly to the increased mineral resources of the Adumbi deposit with improved confidence.
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 III below. 76.29% of this inferred mineral resource is attributable to Loncor via its 76.29% interest in the Imbo Project.
Table III: 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.
Additional Resource Potential and Recommendations for Further Work There is significant additional resource potential within the Imbo project permit:
At the Adumbi deposit, the gold mineralization is still open at depth and, subject to securing the necessary financing, the drilling of an additional 12 core holes (7,000 metres) has the potential to add and upgrade mineral resources within the US$1,500 pit as well as outline potential underground resources below the pit (see Figure 8). 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 testwork, open pit and potential underground studies, metallurgical plant processing, infrastructural, environmental and economic studies.
At the Kitenge and Manzako deposits, 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 in order to generate potential drill targets.
An independent National Instrument 43-101 technical report relating to the mineral resource estimates on the Imbo Project reported in this press release will be filed on SEDAR and EDGAR within the period required by National Instrument 43-101.
Qualified Person Mr. Daniel Bansah, Chairman and Managing Director of Minecon, is the “qualified person” (as such term is defined in National Instrument 43-101) who is responsible for the mineral resource estimates and other technical information disclosed in this press release. Mr. Bansah has reviewed and approved the contents of this press release.
About Loncor Resources Inc. Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the Democratic Republic of the Congo (the “DRCâ€). The Loncor team has over two decades of experience of operating in the DRC. Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base. The area is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrickâ€). In 2019, Kibali produced record gold production of 814,000 ounces at “all-in sustaining costs†of US$693/oz. Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of any discovery in 1,894 km2 of Loncor ground that they are exploring. As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. In a recent announcement Barrick highlighted six prospective drill targets and are moving towards confirmation drilling in 2020. Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.
In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick. Barrick has certain pre-emptive rights over the Makapela deposit. Loncor’s 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). Adumbi and two neighbouring deposits hold an inferred mineral resource of 2.5 million ounces of gold (30.65 million tonnes grading 2.54 g/t Au), with 76.29% of this resource being attributable to Loncor via its 76.29% interest in the project.
Resolute Mining Limited (ASX/LSE: “RSG”) owns 26% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering.
Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com.
Posted by AGORACOM
at 8:42 AM on Thursday, April 16th, 2020
Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT$NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info
Physical gold was up 13.8 percent through April 10
Too few investors have adequate exposure to the yellow metal
Gold and gold stocks are among the highest performing assets of 2020 so far as investors seek a haven amid the coronavirus-fueled rout, and as central banks and governments around the world roll out unprecedented monetary and fiscal measures in an effort to mitigate the economic impact of the “Great Lockdown.â€
That’s the name the International Monetary Fund (IMF) has given this uncertain period, and I believe it may stick. The IMF added that the “world economy will experience the worst recession since the Great Depression,†with global economic growth this year projected to fall to negative 3 percent.
This highlights the importance of protecting your family’s wealth right now, which savvy investors have historically managed to do with gold and precious metals.
Physical gold was up about 13.8 percent through April 10, while senior gold miners advanced 2.8 percent, making the group the best asset class of the year so far. Longtime readers of Frank Talk know that I frequently recommend a 10 percent weighting in gold and gold stocks, and now you can see why. A 10 percent allocation at the beginning of the year—before any of us had ever heard of the novel coronavirus—could have helped minimize the impact of losses in other positions.
(Click on images to enlarge)
The problem is that too few investors have adequate exposure to the yellow metal. That’s the case even for many who may believe they do. As the World Gold Council (WGC) pointed out last year, most broad-based commodity indices have a very small weighting in gold — the S&P GSCI’s, for instance, is only 3.37 percent. What this means is that investors in funds that track these indices likely do not get the full benefit of having gold in their portfolio.
That’s why I recommend that the 10 percent weighting be split into two halves, with 5 percent in physical gold (bars, coins, 12-karat jewelry ) and the other 5 percent in high-quality gold and precious metal mining stocks, mutual funds and ETFs.
Maybe you’ve missed the rally up to this point, but the good news is that it’s probably still not too late to participate.
Gold Well-Positioned to Revert to Its Mean Relative to the S&P 500
According to analysis by Bloomberg commodity strategist Mike McGlone, the price of gold appears to be seeking to revert to its long-term mean relative to the S&P 500 Index. This would suggest that we could see a new record high, driven largely by excessive money printing.
“Unprecedented global monetary stimulus is a worthy catalyst for the per-ounce price of gold to revert to its long-term mean vs. the S&P 500 Index, in our view,†McGlone explains.
The implication of mean reversion right now is that gold would hit a new all-time high, assuming the S&P continues to trade around 2,800. After all, a one-to-one ratio means that both assets are trading at the same level.
This has happened before, as you can see in the chart above. As recently as March 2013, both spot gold and the S&P 500 were trading in the same 1,500 to 1,600 range. Before that, in May 1990, it was a 330 to 360 range.
A reversion to the mean now—again, assuming the S&P continues to trade at its current level—would put the yellow metal at approximately $2,800 an ounce, a new record high by far.
But remember, that’s just a simple one-to-one ratio. The long-term gold/S&P mean is slightly higher, at 1.12, so the gold price would also be slightly higher, possibly closer to $3,000 an ounce.
Mean reversion is something I write about more in-depth in “Managing Expectations: Anticipate Before You Participate in the Market,†which you can read by clicking here.
Interest in Gold Mining Stocks and Gold Royalty Companies Takes Off
Not enough investors have optimal exposure to gold, according to the WGC, but we’re currently seeing a surge in interest in gold mining stocks and gold royalty companies, if Google search data is any indication.
Search terms using “gold mining stocks†and “gold royalty companies†were higher this month than at any other time in the past 10 years. That includes when the yellow metal hit its record high of $1,900 an ounce in 2011.
Google Trends isn’t a leading indicator recognized by mainstream economists and market analysts, but I believe it shows where investors’ thinking may be at right now. They’re seeking a way to preserve their wealth as we face what could be the worst economic downturn in nearly 100 years, and they’re betting that higher precious metal prices will send shares of gold mining and royalty companies higher as well.
