Kilo Goldmines Ltd TSXV:KGL announced results from the Manzako Prospect of its Somituri Project in northeast Democratic Republic of Congo. Assays include
4.96 g/t gold over 11.2 metres
(including 7.62 g/t over 5.3 metres)
1.24 g/t over 10 metres
(including 1.4 g/t over 8.4 metres)
1.26 g/t over 1.1 metres
The company owns a 71.25% interest in the DRC entity that holds the Somituri Project exploitation permits. The Manzako Prospect is approximately five kilometres from the company’s Adumbi Gold Deposit.
President/CEO Alex van Hoeken speaks to ResourceClips.com from Kabul, Afghanistan. “Somituri is an exploration project in which we have [an inferred resource estimate of] two million ounces in a prospect called Adumbi. Manzako is one of the target areas in the near vicinity. Within about a three to five-kilometre radius we have eight other targets which are mined by artisanal miners and appear to be on long structures. We’ve previously had very good results. Our most recent results just confirm the continuation of the prospective area. The ultimate objective is to add ounces to what we’ve already found. So what we’re trying to do is expand the resource base.”
Last December, Kilo received US$1.43 million from Rio Tinto, a joint venture partner along with Suez Holdings Ltd, in the Isiro Iron Ore Project in northeast DRC.
I’ve been working in the DRC for the last 12 years, so I have no problems. I know my way around; I’ve got my network; my wife is a lawyer there. I’m quite comfortable. It’s not the easiest place to work, but if you know your way around, it’s doable—Alex van Hoeken
“The project was originally held 75% by us and 25% by a local partner,” van Hoeken explains. “Rio exercised an option to buy 15% from that partner and they brought forward a payment to us. They were supposed to pay it to us in December 2012, but they brought it forward to December 2011. To us, that’s great because it means they’re highly confident about the project. It’s still early days; we’ve only drilled an initial number of holes. But we’re getting encouraging results so we’ll continue the program. The fact that Rio has purchased the option from the local partner and given us the accelerated payment just means that the project is on track and highly prospective.
“I’ve been working in the DRC for the last 12 years so I have no problems,” he adds. “I know my way around; I’ve got my network; my wife is a lawyer there. I’m quite comfortable. It’s not the easiest place to work, but if you know your way around, it’s doable.
“The logistics are challenging. It’s remote. But that applies to many projects. And the infrastructure is improving. New roads are being built, cellphone networks are being brought up. I can definitely see the difference between now and 12 years ago.”
Kilo, along with a group led by UK-based corporate financier David Buckle, submitted a bid for mining rights in Afghanistan’s Hajigak Iron Ore Deposit.
“We’re now in the middle of discussions with the Afghanistan Ministry of Mines,” van Hoeken says. “It would be premature to say anything further.
“We have a very good, very open relationship with David Buckle. We make joint decisions; we’re meeting all the Afghan parties together; we work as partners. The plan is to create an independent entity which would have its own project team. I would offer input and assistance. It will be run independently from the projects in the Congo.
“We’ll be working with locals for security.” he points out. “The province where the project is located is considered one of the safest in the country. The need for security probably won’t be as high as you might think.”
Van Hoeken concludes, “I think Kilo is completely undervalued for its assets and potential compared to our peers in the industry. Based on that alone, I think an investment is more than justified, despite the potential downside—because the potential upside is so much larger.”
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Alex van Hoeken
by Greg Klein