November 1, 2024 — Loncor Gold Inc. (TSX: LN) (OTCQX: LONCF) (FSE: LO5), a Canadian gold exploration firm with deep roots in the Democratic Republic of the Congo (DRC), has announced the start of an ambitious 11,000-meter deep drilling program at its flagship Adumbi deposit. This initiative, combined with scout drilling on several other promising targets along a 14-kilometer structural trend, signals Loncor’s determination to strengthen its position in Africa’s gold sector and expand its gold resource base in the Ngayu Greenstone Belt.
With significant resource potential already established, this new drilling effort aims to unlock Adumbi’s deep-seated high-grade mineralization, positioning Loncor as a leading contender in high-grade African gold assets. For investors, this announcement highlights an important phase for Loncor’s growth strategy, underscoring the company’s commitment to becoming a key player in sustainable gold mining in Africa.
Background and Context: Loncor’s Path to Success in the DRC’s Greenstone Belt
Founded as a Canadian venture with expertise in gold mining, Loncor Gold has focused its activities on the Ngayu Greenstone Belt in northeastern DRC—a region rich in gold yet underexplored. Loncor has established itself through years of focused exploration, which has already identified significant gold resources at its Imbo Project, particularly in the Adumbi deposit.
Nestled just 130 miles from Africa’s largest gold mine, Kibali, Loncor Gold finds itself in great company. Ongoing drilling activities at the Adumbi Gold Project are particularly noteworthy, as they not only aim to expand resource estimates but also demonstrate a commitment to responsible and efficient mining practices.
Loncor’s extensive experience in the DRC, combined with its expanding resource base, has made it a recognized player in the region’s gold mining industry. The Adumbi deposit alone holds an indicated mineral resource of 1.88 million ounces of gold and an inferred resource of 2.1 million ounces. Now, the latest deep-drilling program aims to expand these numbers, exploring the untapped depths of the Adumbi deposit, where gold-bearing structures may offer even greater yield potential.
$1.3 BILLION IN AFTER TAX VALUE AT GOLD PRICE OF $2,000OZ
Boasting an after tax value of $1.3 billion at a conservative $2,000 per ounce, Adumbi promises an average annual production of 303,000 ounces of gold over a decade-long span, with its resource base still expanding. With a mining permit already secured, the path is paved for Adumbi’s development, poised to unlock significant value for Loncor Gold and its stakeholders.
$12 MILLION IN CASH & RECEIVABLES
The company has $12 million in cash and short-term receivables which is due to a recent sale of a non-core property and that cash will be put to work on the company’s Adumbi open pit gold deposit.
Key Highlights and Advantages of Loncor’s Drilling Initiative
Loncor’s newly announced drilling program is designed to leverage and expand Adumbi’s gold resource by tapping into the deposit’s deeper levels and associated structures. Some of the key aspects of this drilling initiative include:
- 11,000 Meters of Deep Drilling: Targeting deeper mineralization beneath the established Adumbi open pit, where prior assessments revealed promising grades.
- Open at Depth: The current resource remains open at depth, and this program aims to identify high-grade gold zones that could significantly add to Loncor’s total resource.
- Strategic Structural Trend: Alongside the Adumbi deposit, Loncor is conducting scout drilling on four nearby exploration targets within the same 14-kilometer structural corridor, revealing promising intersections.
Preliminary results from the Museveni prospect within this trend show visible gold and high-grade intersections, an encouraging sign that underscores the potential of Loncor’s regional approach. By exploring the entire structural corridor, the company aims to maximize its impact, not only at Adumbi but across its neighboring prospects.
Potential Impact: Expanding Resources and Building Value
The new drilling program holds the potential to elevate Loncor’s status within the high-grade gold segment, attracting investor interest and potentially driving future revenue. If successful, the program could push the Adumbi deposit towards Tier 1 status—a classification reserved for the highest-quality, lowest-cost gold deposits. This would solidify Loncor’s foothold in the DRC’s gold mining sector, providing long-term value for shareholders and investors.
In addition, the preliminary assays from scout drilling are promising. Hole LIDD003 at the Museveni prospect has delivered grades of 69.7 g/t and 22.9 g/t gold in different sections, indicating the possibility of new high-grade deposits within reach of the main Adumbi site. These results will be closely monitored, with future assays providing further clarity on the region’s broader resource potential.
Expert Insights: The Significance of Loncor’s Move
“After some logistical challenges to get all the drilling equipment to site during the peak of the rainy season, drilling has now commenced on the deep drilling program at Adumbi that has the potential to push the high-grade deposit towards Tier 1 status,” stated John Barker, CEO of Loncor Gold. Barker’s optimism reflects Loncor’s confidence in the geological prospects at Adumbi and the surrounding areas. He adds, “Scout drilling has commenced on a number of targets along the 14 km structural trend to the southeast of Adumbi, and we are starting to get encouraging results.”
Loncor’s strategy is also notable for its logistical prowess, successfully navigating difficult terrain and seasonal challenges to bring specialized drilling equipment to the site, showcasing its commitment and operational expertise.
Challenges and Considerations: Navigating Depth and Logistical Constraints
While the potential of deeper mineralization at Adumbi and nearby prospects is promising, deep drilling programs come with inherent challenges. The logistical demands of transporting heavy drilling equipment through remote regions and the variable weather conditions in the DRC can impact timelines and budgets. However, Loncor has demonstrated resilience in overcoming these issues, showing its capacity to manage the unique demands of operating in the DRC.
Additionally, the natural challenges of drilling at greater depths may result in complex structural conditions that could impact the accuracy and effectiveness of assays. Loncor’s team has implemented rigorous quality assurance and quality control protocols, partnering with SGS Laboratory in Tanzania to ensure reliable and consistent results.
Conclusion: Loncor Gold on the Brink of a New Phase of Growth
Loncor’s ambitious deep drilling initiative at Adumbi and exploration along a prospective structural trend showcases a company poised for growth. By targeting high-grade deposits at depth and expanding exploration along the structural corridor, Loncor is strengthening its position in one of Africa’s most promising gold mining regions.
For investors, this development underscores Loncor’s commitment to resource expansion and potential revenue growth, positioning the company as a high-potential opportunity within the gold sector. With promising early-stage assay results and an experienced management team, Loncor is primed to make significant strides in gold exploration, signaling a bright outlook for the company and its stakeholders.
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