Completion of Regional Mapping Program
Leads to New Targets In the Mesquite-Imperial-Picacho
District
VANCOUVER, BC, March 8, 2022 /CNW/ - KORE Mining Ltd. (TSXV:
KORE ) (OTCQX: KOREF) ("KORE" or the "Company")
is pleased to announce the completion of data analysis for the 100+
person-day regional mapping campaign at the Imperial Gold
project ("Imperial"), leading to the discovery of three
new exploration drill targets (Figure 1). This brings
a total of nine highly prospective drill targets identified in the
Mesquite-Imperial-Picacho District ("District"); a District
that captures 28 kilometers ("km") of strike from
Equinox Gold's (TSX: EQX) operating Mesquite gold mine
("Mesquite") to the historic
Picacho gold mine ("Picacho"). Various
additional stream sediment and rock chip assays and analyses are
pending. The mapping program focused on establishing vectoring
strategies through the Bear Canyon
conglomerate, a late alluvial unit which covers most of the
property.
New Discovery Highlights:
- Discovers three new target areas: Smoketree, Ironwood, and
Wolverines
- Expanded Acacia target to over 1.5 km of mineralized strike
with new outcrop areas
-
- Highlights from surface sampling include 1.0 g/t and 0.6 g/t
gold
- Expanded the existing Powerline target to over 2 km mineralized
length
- Collected 123 soil and rock samples while mapping previously
undiscovered mineralized outcrop between the Imperial deposit and
the Mesquite mine – assays pending
- Commissioned follow-up man-portable drill program for Q2
2022
Mapping Program Highlights:
- Established new vectoring strategy for detecting gold
mineralization in areas with little or no surface outcrop
exposure
-
- Gold mineralization detected in numerous distinct Tertiary Bear
Canyon conglomerates
- Incorporated 130,000+ acres of lithologic mapping and data into
regional geologic model
- Integrated regional structural model encompassing an area over
2,300,000 acres
- Established regional hand sample library to standardize
regional mapping and allow high confidence identification of rock
units
KORE's CEO Scott Trebilcock
commented, "With nine high potential oxide gold drill targets
identified to date, KORE continues to successfully develop the
knowledge and exploration strategies to target and make new
discoveries at the Mesquite-Imperial-Picacho district exploration
project. The amount of outcrop and anomalous gold at surface
continues to exceed expectations."
Regional Scale Interpretation
Gold occurrences on the
Imperial Gold Project are primarily controlled by regional scale
east to west and west-northwest to east-southeast trending thrust
faults that have been interpreted across the entire 28km strike
length of the property. These thrust faults bring the sheets of the
crystalline basement closer to surface and within economically
mineable depths. Along these faults, secondary and tertiary
structural and lithological controls periodically create "hot
spots" of gold mineralization, each generally 1 to 2km in strike
length. Gold grade correlates strongly with degree of brecciation
in all known target areas. Brecciation is generally tectonic in
nature, although hydrothermal and volcanic mineralized breccias
have been observed in some locales. Mapping efforts have revealed
that late tertiary alluvial cover units are often mineralized with
low grade gold proximal to mineralized gneiss occurrences. This
allows for the indirect detection of mineralized gneiss occurrences
that have little or no surface expression. Alteration styles
observed across all prospect areas mentioned in this report are
chloritization of mafic minerals, hematite +- jarosite +- goethite
along fractures or brecciated zones, local to pervasive
sericitization, kaolinite alteration, silicification, and quartz +
carbonate veining.
Powerline Area Prospects (Powerline, Smoketree, and Ironwood
targets)
The Powerline prospect area outcrop consists of
two east to west trending strongly brecciated thrust sheets of
mineralized conglomerate and gneiss, together totaling ~130m of
exposure. WorldView-3 spectral satellite data indicated that these
outcrops were within a large chlorite alteration zone. Detailed
follow up mapping and sampling efforts have since established
approximately 2km of mineralized strike length.
While the majority of the Powerline prospect area is covered by
the Tertiary Bear Canyon conglomerate, several of these outcrops
are strongly altered and mineralized, indicating that they may be
overlying mineralized gneiss in the subsurface.
A person portable drill that produces nearly NQ sized core
samples up to 30 feet depth will be used in Q2 2022 to further
define this zone and improve geologic understanding.
Sandwich Target Area
The Sandwich zone was first
identified in 2019 during early-stage reconnaissance mapping and is
most notable for having the highest intensity of alteration
observed on the property. This target area has a strike length of
1.4km and mineralization is structurally controlled by the
regionally extensive, WNW trending thrust faults. The intensity of
the alteration is primarily controlled by the degree of brecciation
of the host rock. Mineralized veins were observed in the
stratigraphically overlying and relatively impermeable Winterhaven
Formation, suggesting that the Winterhaven may have acted as a
lithocap to ascending gold bearing fluids.
This prospect area terminates against a large-offset strike slip
fault, which transported a sliver of mineralized basement 1.5km to
the south creating the "Acacia" target area.
Acacia Target Area
In April
2021, a batch of regional reconnaissance stream sediment
samples yielded a 1.6km long trend of 12 samples assaying over 0.1
g/t, including one sample assaying 3.7 g/t and two additional
samples over 1.0 g/t. Follow-up work led to the widespread
discovery of visible gold flakes and nuggets, generally fine
grained but some as large as 4mm. Mapping has delineated a 1.8km
gneiss outcrop.
The Acacia target is interpreted as a faulted sliver of the
Sandwich zone transported via the dextral Gatuna Wash fault. The
mineralization in both zones is primarily controlled by E-W
trending regionally extensive thrust faults, particularly the
Gatuna-Sortan, Chocolate Mountains, and Copper Basin faults.
Wolverines Target Area
SWIR Geo-enhanced imagery,
which combines infrared and visible light bands to graphically
display differences in rock reflectivity spectra, revealed a ~1km
long outcrop of altered and brecciated gneiss. This area is
characterized by its widespread evidence of historical mining
activity, such as old vibrating screen apparatuses, bulldozer
activity, and abandoned camp sites. The prospect area remains
dramatically under sampled, with follow up work scheduled for Q2
2022.
East Mesquite Target Area
In 2019, KORE executed a
regional ground induced polarization ("IP") survey which
interpreted a continuous regional scale structure connecting the
operating Mesquite mine to the East Mesquite prospect area. The
interpreted structure was drilled by Equinox Gold in September 2021 and resulted in their "best hole
drilled year-to-date" with 78 meter of 1.2 g/t – see news
September 8, 2021. Given that
most of the target area is covered by late alluvial cover units,
targeting will rely heavily on geophysics.
Ogilby Target Area
The Ogilby target area is notable
for returning one of the highest assays on the property at 1.4 g/t.
IP sections from Imperial to Ogilby show anomalies similar in size
and character to those at the known Imperial deposit, strongly
suggesting that the geology is continuous between these zones.
Anomalous samples have thus far clustered along the northernmost
line of geophysical anomaly, which includes a 300 meter long trend
of faulted and mineralized Bear
Canyon conglomerate. Follow up sampling is currently in
progress and several assays are pending.
Sampling and Mapping Program Details
KORE has established a new methodology for mapping the Tertiary
Bear Canyon conglomerate, which covers the majority of the property
and typically overlies the host rock (gneiss) of the Imperial
deposit. This new strategy makes it possible to detect gold
occurrences in prospect areas that have little to no host rock
exposure. By studying these units across the entire property, the
program discovered that the Bear
Canyon conglomerate can become mineralized through two
mechanisms: 1) an offshed type, consisting of mineralized clasts of
gneiss in a matrix that may or may not be altered 2) by pervasive
fluid flow and/or quartz carbonate veining, especially along
faults. Leading researchers were consulted throughout the course of
the mapping effort, with one researcher making a site visit to help
establish a framework for the program. Sampling of historic core
has revealed that Tertiary Bear Canyon conglomerate in close
proximity the mineralized gneiss host rock can also become
mineralized contemporaneously and can achieve gold values above
cut-off grade of the Imperial gold deposit. While the Bear Canyon
Conglomerate does not appear to be as good a host rock as the
gneiss, mineralized Bear Canyon
conglomerate is an excellent indictor for being within close
distance to both a mineralizing source and likely mineralized
gneiss host rock.
Having the intact Imperial deposit to "tune" or "fingerprint" this
method greatly enhances the Company's
confidence to target new discoveries under the Bear Canyon conglomerate along the 28km trend.
Both types of mineralized conglomerate units are observed near the
Imperial deposit, both at surface and in drill core.
Areas that show trace gold mineralization can be followed up on
by a person portable drilling system, capable of testing targets to
depths of 30 feet. This program was successfully permitted and
implemented in 2021.
In 2021, KORE's mapping team collected 94 rock samples and 29 stream sediment samples. Stream
sediment samples collected averaged 4.0 kilogram in weight and
were taken at an average depth of 0.4 meters below
surface.
KORE is committed to operating within the stringent environmental and labour standards of
California.
Figure 1 shows the new geologic model
compiled from 2021 field work, scientific, and historic data,
Imperial gold resource outline, the Mesquite mine, and the 9
property wide targets.
About the Imperial Gold Project
KORE owns 100% of the Mesquite-Imperial-Picacho District which
consists approximately 31,000 acres of claims capturing the entire
28-kilometer trend from the operating Mesquite mine (Equinox Gold -
TSX:EQX) to the closed Picacho mine and including KORE's Imperial
project as depicted on Figure 3. In the District, gold is
hosted in local fault structures related to a series of regional
faults connecting the known District deposits. Those three District
deposits (Mesquite, Imperial and Picacho) were discovered in
exposed outcrops and from placer workings. The rest of the District
is covered by alluvium and has never been systematically
explored.
The Mesquite-Imperial-Picacho District centers on KORE's
Imperial project. Imperial is a structurally controlled
intermediate sulfidation epithermal gold deposit. The 100% oxide
gold deposit is currently defined at 2.44 kilometer long and up to
0.75 kilometer wide and is open both along strike and downdip. It
is hosted in a shallowly southwest dipping, amphibolite grade
metamorphic rock suite along a west- northwest trending low-angle
regional thrust fault system which controls the regional geometry
of mineralization. East-west striking, post-mineralization normal
faults control the property scale geometry of mineralization.
Geophysical characterization of the deposit and regional
controlling structures is an essential component of exploration for
additional resources.
Imperial has a mineral resource estimate and a positive
preliminary economic assessment effective April 6, 2020 with the following highlights:
- Robust economics: US$ 343 million
NPV5% post-tax with 44% IRR at US$
1,450 per ounce gold
- Low capital intensity project with only US$ 143 million pre-production capital cost
- Average 146,000 ounces gold per year over 8 years for 1.2
million ounces total production
- Technically simple project: shallow open pit, run-of-mine heap
leach with existing infrastructure
- Value enhancement through Mesquite-Imperial-Picacho District
exploration and resource expansion
The Company's NI 43-101 compliant resource and
preliminary economic assessment is titled "Preliminary Economic
Assessment – Technical Report Imperial Gold Project" effective as
of April 6, 2020 and revised and
amended on June 10, 2021, prepared by
Terre Lane and Todd Harvey of Global Resource Engineering
and Glen Cole of SRK Consulting (Canada) Inc. can be found under the Company's
profile on SEDAR (www.sedar.com) and on the Company's website.
About KORE Mining
KORE Mining is focused on
responsibly creating value from its portfolio of gold assets in
California, USA. The Company
is advancing the Imperial project towards development while
continuing to explore across both district-scale gold
assets. Management and Board, along with strategic investor,
Eric Sprott
(26% owner), are aligned with
all KORE shareholders with the goal of creating per
share value.
On behalf of KORE Mining Ltd
"Scott Trebilcock"
Chief Executive
Officer
(888) 407-5450
Investor Relations
Arlen
Hansen, KIN Communications
1-888-684-6730
kore@kincommunications.com
Technical information with respect to the District and Imperial Gold Project contained in this news release has
been reviewed and approved by Marc
Leduc, P.Eng, who is KORE's COO and is the qualified
person under National Instrument 43-101
responsible for the technical matters of this
news release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements relating
to the future operations of the Company and other statements that
are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate",
"expects", "intends", "indicates" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements regarding
the future plans and objectives of the Company are forward- looking
statements.
Forward–looking statements in this news release include, but are
not limited to, statements with respect to: the strategy, timing
and implementation of permit regional exploration drilling in the
28-kilometer Mesquite-Imperial-Picacho District ("Regional
Exploration Drilling"); the timing of submitting Environmental
Assessment report(s) for one or more areas of the Imperial project;
potential actions, behavior or position of the Bureau of Land
Management (the "BLM"); the underexplored and
prospective nature of the Imperial Regional Exploration Drilling
area; the results of the preliminary economic assessments for the
Imperial Project, including future project opportunities, the
projected NPV, permit timelines, the current mineral resource
estimate, and the ability to obtain the requisite permits; the
market and future price of and demand for gold; the opportunities
of expansion at the Imperial Project; and the ability to work
cooperatively with stakeholders, including all levels of
government. Such forward–looking statements, and any assumptions
upon which they are based, are made in good faith and reflect our
current judgment regarding the direction of our business. In
connection with the forward–looking information contained in this
presentation, the Company has made numerous assumptions, including,
among others: there being no significant change to current
geotechnical, metallurgical, hydrological and other physical
conditions at the Imperial Project; exploration, permitting, and
development of the Imperial Project being consistent with current
expectations and planning; the geological, permitting and economic
advice that the Company has received is reliable and is based upon
practices and methodologies which are consistent with industry
standards; and other planning assumptions. While the Company
considers these assumptions to be reasonable, these assumptions are
inherently subject to significant uncertainties and
contingencies.
Forward looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward–looking information. Known risk
factors include, among others: the outcome of BLM's review
processes for permitting, including the final outcome(s) of BLM's
mineral claim validity examination(s) and administrative review
process(es) with respect to the Imperial Zone, including a change
to the findings from the mineral claim validity examination
conducted in 2002 for the mill sites at the Imperial Zone,
resulting in the Company having to move its future Imperial Zone
project support facilities to areas that are not within the Indian
Pass mineral withdrawal area; the possibility that BLM may require
and/or conduct further mineral claim validity examinations with
respect to the Imperial project, and the outcome and final
determination of such examination could, among other things,
invalidate one or more mining claims; the possibility that BLM or
other governmental authority review of the Regional Exploration
Drilling program, delays or changes the Company's plan for Regional
Exploration Drilling permitting, which could result, among other
things, in delays, additional project requirements, additional
costs and uncertainty of meeting anticipated program milestones;
the exploration drill program may not be completed as planned; the
need to obtain additional financing; uncertainty as to the
availability and terms of future financing; the possibility of
delay in exploration or development programs and uncertainty of
meeting anticipated program milestones; uncertainty as to timely
availability of permits and other government approvals.
Additional risks and uncertainties are described in the "Risks"
sections of (i) the Company's Annual Information Form for the
year ended December 31, 2020 prepared
as of April 29, 2021, and (ii)
the Company's Management's Discussion and Analysis for the
nine months ended September 30, 2021,
both available under the Company's
issuer profile on www.sedar.com.
Forward-looking statements contained herein are made as of the
date of this news release and the Company disclaims any obligation
to update any forward-looking statements, whether as a result of
new information, future events or results, except as may be
required by applicable securities laws. There can be no assurance
that forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information.
There is no certainty that all or any part of the mineral
resource will be converted into mineral reserve. It is uncertain if
further exploration will allow improving the classification of the
Indicated or Inferred mineral resource. Mineral resources are not
mineral reserves and do not have demonstrated economic
viability.
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SOURCE Kore Mining
