Loncor Gold continues talks for Au deposit development
2022-04-27 12:22 ET - News Release
Mr. John Barker reports
LONCOR CONTINUES DISCUSSIONS WITH POTENTIAL PARTNERS
Loncor Gold Inc. said in its Jan. 31, 2022, press release that the company was in preliminary discussions with potential strategic partners with respect to the development of Loncor's gold deposits. These discussions continue.
The initiation of discussions with potential strategic partners was largely driven by the preliminary economic assessment (PEA) conducted upon the company's 84.68-per-cent-owned Adumbi deposit, details of which can be found in the company's Dec. 15, 2021, press release. A summary of key points of the Adumbi PEA are included below:
- Average annual gold production for Adumbi of 303,000 ounces per year over 10.3-year life of mine within proposed open-pit shell;
- After-tax net present value at 5-per-cent discount rate for HEP (hydroelectric power) hybrid case of $624-million (U.S.) at a $1,600 (U.S.) gold price and $879-million (U.S.) at a $1,760 (U.S.) gold price;
- Average total cash costs of $852 (U.S.) per ounce over life of mine and all-in sustaining cost of $950 (U.S.) per ounce for HEP hybrid case;
- The Adumbi indicated mineral resource of 1,883,000 ounces of gold (28,185,000 tonnes grading 2.08 grams per tonne gold) and inferred mineral resource of 1,777,000 ounces of gold (20,828,000 tonnes grading 2.65 g/t Au) within a $1,600 (U.S.) per ounce optimized open-pit shell.
There is excellent exploration potential to increase mineral resources at Adumbi and within Loncor's Imbo project area. At Adumbi, drilling has demonstrated that gold grades and the thickness of the mineralized BIF (banded ironstone formation) host sequence increase at depth toward the bottom of the open-pit shell and wide-spaced drilling has already intersected grades and thicknesses amenable to underground mining below the open pit. Further drilling is required to initially outline a significant underground inferred mineral resource, which can be combined with the open-pit mineral resources so that studies can be undertaken for a combined open-pit and underground mining scenario at Adumbi. Besides increasing the resource base, a combined open pit/underground project could increase grade throughout and reduce strip ratios with the higher-grade, deeper mineral resources at the bottom of the open pit being mined more economically by underground, which could increase annual gold production and drive down operational costs.
There are also several deposits and prospects close by to Adumbi that have the potential to add mineral resources and feed for the Adumbi mine development. Along trend from Adumbi, the Manzako and Kitenge deposits remain open along strike and at depth. Further along this structural trend to the southwest across the Imbo river and within the Imbo project area, four prospects (Esio Wapi, Paradis, Museveni and Mungo Iko) hold good potential for additional resources. Initial drilling will be scheduled for this very prospective area.
Additional feed for an Adumbi processing plant could also come from Loncor's 100-per-cent-owned high-grade Makapela deposit, where an indicated mineral resource of 614,200 ounces of gold at 8.66 g/t Au and an inferred mineral resource of 549,600 ounces of gold at 5.30 g/t Au have been outlined to date. Makapela is located approximately 50 kilometres from the Adumbi deposit.
Cautionary statement
The Adumbi PEA is preliminary in nature and includes inferred mineral resources in the open-pit outlines that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that all the conclusions reached in the Adumbi PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Qualified person