AGORACOM Small-cap Investor Relations Blog

• Exploration results have outlined a number of significant, undrilled mineralised trends at its 84.68%-owned Imbo Project.
• Situated approximately 9 km from our key deposit of Adumbi

TORONTO, Sept. 21, 2020 (GLOBE NEWSWIRE) — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQX: “LONCF”; FSE: “LO51”) is pleased to announce that the recent exploration results have outlined a number of significant, undrilled mineralised trends at its 84.68%-owned Imbo Project. The focus of exploration by Loncor during 2020 has been along trend in the southeast of the Imbo Project from the 2.5 million ounce Adumbi, Kitenge and Manzako deposits (inferred mineral resources of 30.65 million tonnes grading 2.54 g/t Au) previously delineated in the northwest of the 122 square kilometre project area.

Commenting on these results, Loncor’s President Peter Cowley said: “Situated approximately 9 kilometres from our key deposit of Adumbi, we are very encouraged by the exploration results received to date on the eastern part of our Imbo Project. Additional infill soil sampling, augering and channel sampling will be undertaken at Esio Wapi, Paradis and Museveni to better define these mineralised trends prior to outlining drill targets later in the year.”

Table 1 – Channel Sample Results on Esio Wapi, Paradis and Museveni Mineralised Trends

Prospect	Workings	Channel_ID	Channel Width (metres) and Grade (g/t Au)	Lithology	Open/Closed
ESIO WAPI	Colonial	IECH033	19.80 m @ 1.58 g/t	Brecciated BIF	Open to northeast
ESIO WAPI	Colonial	IECH021	4.00 m @ 2.31 g/t	Metasediment	Open to southwest
ESIO WAPI	Colonial	IECH022	5.00 m @ 1.65 g/t	Brecciated BIF& Metasediment	Closed at both ends
ESIO WAPI	Colonial	IECH021	8.00 m @ 1.11 g/t	Brecciated BIF	Closed at both ends
PARADIS	Artisanal	IECH025	6.80 m @ 5.44 g/t	Metasediment with quartz vein	Open to Southwest
MUSEVENI	Artisanal	IECH008	1.40 m @ 62.10 g/t	Metasediment with quartz vein	Open to southwest & northeast
MUSEVENI	Artisanal	IECH006	6.00 m @ 4.37 g/t	Metasediment with quartz vein	Open to southwest & northeast

Gridding, geological mapping, soil geochemical sampling and channel sampling of old colonial trenches and artisanal workings have outlined three significant mineralised trends, Esio Wapi, Paradis and Museveni, to the east of the Imbo river and approximately 8 to 10 kilometres southeast of the Adumbi deposit (see Figure 1 below). Analytical results have been received for 21% of soil samples from the completed 5,440 metre by 2,320 metre grid and where soil samples were collected every 40 metres on lines 160 metres apart.

At Esio Wapi, soil geochemical results have outlined a number of plus 200 ppb (parts per million) gold in soil anomalies with a maximum value of 2,230 ppb Au over a 3.2 kilometre long mineralised trend (see Figure 2 below). Best channel samples from old colonial workings are tabulated in Table 1 above and include 19.80 metres grading 1.58 g/t Au (open to the northeast), 8 metres grading 1.11 g/t Au and 5.0 metres grading 1.65 g/t Au in brecciated banded ironstone (BIF) and metasediment. Individual rock sample values included 15.10 g/t and 7.88 g/t Au in quartz veins; 12.30 g/t and 6.39 g/t Au in BIF and 7.91 g/t, 4.81 g/t and 4.52g/t Au in metasediments.

On the Paradis trend, soil sample results are still awaited from the eastern part of the trend but soil anomalies (plus 200 ppb Au) in the western part of the trend occur over 800 metres of strike. Significant channel samples along the Paradis trend include 6.8 metres grading 5.44 g/t Au (open to the southwest) in metasediments with quartz veins. Individual rock sample values included 22.40 g/t, 5.84 g/t and 2.31 g/t Au in quartz veins.

At Museveni, soil samples are still to be received but artisanal workings occur over a strike of 2.7 kilometres. Channel samples from the artisanal workings include 6.0 metres grading 4.37 g/t Au and 1.40 metres grading 62.10 g/t Au and represent high grade quartz veins in metasediment. Individual rock sample values included 53.90 g/t, 32.80 g/t and 32.60 g/t Au in quartz veins and 18.10 g/t Au in metasediment.

Quality Control and Quality Assurance
Soil, channel and rock samples were put in sealed bags by Company geologists and sent to the independent SGS Laboratory in Mwanza, Tanzania. The 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 at a frequency of four standards and two blanks per every 50 samples. Every eighth sample collected in the field was split and submitted as an unmarked duplicate for assay.

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. 

Technical Reports
Additional information with respect to the Company’s Imbo Project (which includes the Adumbi deposit) is contained in the technical report of Minecon Resources and Services Limited dated April 17, 2020 and entitled “Independent National Instrument 43-101 Technical Report on the Imbo Project, Ituri 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.

Additional information with respect to the Company’s Makapela Project, and certain other properties of the Company in the Ngayu gold belt, 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.

About Loncor Resources Inc.
Loncor is a Canadian gold exploration company focussed 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 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 220 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (TSX: “ABX”; NYSE: “GOLD”). 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 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 have commenced 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 Belt surrounding and including the Adumbi and Makapela 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. 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 84.68% of this resource being attributable to Loncor via its 84.68% interest in the project. 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).

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.

Figure 1: Imbo Project Simplified Geology

Figure 2: Imbo East Soil and Channel Sampling (on Aeromagnetic grey scale Background)

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3 Golden Reasons Loncor Is A Top Small Cap Gold Explorer

Loncor Resources (LN: TSX / OTCQX: LONCF /) is a proven gold explorer focused 100% on Africa, a continent where the team has previously discovered over 27 million ounces of resources…. with plans to find even more.

The Company controls its flagship Imbo Project in the Democratic Republic of the Congo, where it has already has 2.5 million ounces of inferred resources with 2.19M ozs at the Adumbi deposit alone. Loncor is looking to swiftly increase its gold resource through focused drilling at Adumbi, increasing its ounces toward production.

More than just lip service, Loncor has a billion-dollar gold miners as shareholders that also believe in the Company’s vision. 

• Resolute Mining of Australia has a market capitalization of $1.5 Billion and owns 27% of Loncor
• Newmont continues to hold a position in Loncor with 7%

Moreover, Loncor’s CEO owns 26% of the Company.  Taken all together, it adds up to a great deal of confidence in Loncor Resources, which should provide any current or potential new shareholder with even greater confidence considering the due diligence abilities of these large shareholders.

WAIT …… 1 MORE MULTI BILLION DOLLAR GOLD COMPANY BEHIND LONCOR … BARRICK GOLD

There is another element to the Loncor story that adds tremendous opportunity, a Joint Venture on all of Loncor’s remaining land with Barrick Gold, the $53 Billion Company whose mandate is to find “Tier 1 gold deposits” on Loncor’s ground. Barrick has commenced drilling on Loncor’s land looking for their target of a + 5,0 million ounce gold deposit.

But Barrick is focusing there for a reason.

Barrick operates their outstanding DRC mine – Kibali – in a JV with another multi-billion gold operator, Anglogold Ashanti, plus the Government of the DRC. The mine is situated 220kms from Loncor’s Ngayu ground. Kibali represents one of the world’s great new gold mines, producing a record breaking 814,027oz in 2019 at “all in sustaining costs” of just US$693/oz. Barrick, who owns a 45% share, has joined other major mining players like Ivanhoe Mines and Glencore in releasing the billions of dollars of potential mineral wealth in the DRC.

Loncor arguably offers the largest direct exposure to the gold potential of the DRC, backed up by individuals who know the DRC well (drill down below). With Barrick moving two rigs in to take a closer look at 6 high priority targets defined by them. You now know why Barrick has a JV with Loncor on their other DRC assets – they are looking for the next Kibali style project and nothing less.

Though Loncor’s Imbo project is not part of the Barrick JV it’s on the same huge geological belt, has grades similar to Kibali and has more than 2.5 million ounces of inferred gold resources already – with drilling ongoing- Loncor isn’t just wishful thinking that much more can possibly be found.

THE DEMOCRATIC REPUBLIC OF THE CONGO 

As you may have guessed by now and contrary to layman perceptions, the Democratic Republic of the Congo is a significant player in the world’s production of resources, which are the Congo’s largest source of export income. An estimated $24 trillion in untapped deposits of raw mineral ores lie beneath the Congo’s incredibly vast lands. This is the equivalent to the combined Gross Domestic Product of Europe and the United States. Multi-billion dollar companies such as Tesla, Glencore, Samsung, Ivanhoe Mines, Zijn Mining Group, China Molybdenum Ltd, Barrick Gold and AngloGold Ashanti all have deals or projects in the DRC.

Finally, all junior resource investors know that in order to be successful, companies like Loncor must have a great exploration team with relevant knowledge and area expertise.  In this regard, Loncor does not disappoint.

Loncor’s team has previously delineated +/-13 million ounces of gold resources in the 20 years many of the individuals have operated in the DRC, with the huge Ngayu Belt now the focus. In Africa, their record is more impressive with key individuals finding closer to 27 million ounces of total resources.

As an example, President Peter Cowley has over 40 years’ experience in the minerals industry and a history of major exploration successes in Africa, including the DRC. Among his major accomplishments, from 2004 to 2008 he led the exploration at Banro that delineated major gold resources at Twangiza and Namoya, also in the DRC.

Prior to joining Banro, Mr. Cowley was Managing Director of Ashanti Exploration, where he led the exploration team in the discovery and development of the Geita mine in Tanzania, a resource of over 17M ozs.

Prior to Ashanti, he was Technical Director of Cluff Resources which discovered and developed mines in Zimbabwe, Ghana and Tanzania.

Mr Cowley has found and knows where to find ounces in Africa, especially in the DRC.

Arnold Kondrat, is the founder and CEO of Loncor Resources with over 30 years’ experience in the public markets, primarily in the resource industry. His 25-year history in the Democratic Republic of the Congo has enabled the Company to secure a number of highly prospective gold assets. Arnold has repeatedly supported the company, often through difficult times, and now owns 26% of Loncor.

THE 3 REASONS WHY LONCOR IS A WORLD CLASS, SMALL CAP GOLD EXPLORER:- 

1.Loncor’s Imbo Project looks like a potential company maker with 2.5 million ounces already outlined

Loncor is independently on its way to creating a world class gold project at Imbo. They control 84.68% of all gold discovered at Imbo and have a fully funded 12-hole drill program planned over the next 9 months where they believe they can readily add ounces to the 2.5 million inferred resource outlined to date. The Adumbi Deposit remains the focus and has 2.19M ounces and its sister deposits – Kitenge and Manzako – account for approximately 300,000 more ounces.

“Loncor continues to consolidate its dominant position in the Ngayu Goldbelt.  Over the next twelve months we intend to drill the Adumbi gold deposit and several other highly prospective areas of the Imbo license” (Arnold Kondrat, March 5 2020)

Enterprise Value to Ounces in the Ground currently approaches US$14/oz

For around US$14 an ounce you can currently buy an “option” on Loncor continuing to succeed in adding ounces through drilling at Adumbi, moving the project closer to the sort of economics displayed at Kibali.

2. Resolute and Barrick Relationships

There isn’t a junior resource explorer in the world who wouldn’t want to have just 1 supportive relationship with one of the major miners – and Loncor has 3:

• Resolute Mining is a gold producer with multiple long life, high margin assets and a strong platform for growth and consolidation within Africa.  Resolute  sees its 2020 gold production at 500,000 oz.  They own 27% of Loncor’s stock
• Newmont continues to hold a 7% position in Loncor
• Barrick Gold is a $53 Billion dollar major whose JV with Loncor in the DRC speaks for itself as they search for Kibali II.

If a new investor was looking for 3rd party validation to justify investing in a small-cap resources company, it simply doesn’t get much better than having these mining thoroughbreds supporting Loncor.

3. Management Expertise and Ownership  

If you are looking for gold follow the people who have already found it. The old adage is true, and management is one of the best indicators of how far a company can exceed expectations. Loncor management has delineated 13 million ounces previously in the DRC and is looking to add more through drilling in 2020.

Add in the fact that key management own 26% of Loncor stock and it is clear they have put their money where their mouth is long before asking outside investors to do the same.

CONCLUSION – With gold prices trending aggressively higher, investors will be hard pressed to find a better company than Loncor Resources to participate in a bull market for gold.

Loncor is in a position few juniors could ever hope to achieve, with the combination of their own +3-million-ounce projects, a JV with Barrick and shareholders that include other major miners. 

Click Here To Discover More Information About Why Loncor Resources Is The Next Small Cap Gold Discovery