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Kilo Goldmines Ltd.: Gold Geochemistry Anomalies Delineated on Ngazi Licence, Somituri Project, DRC


TORONTO, ONTARIO -- (Marketwired) -- 02/18/14 -- Kilo Goldmines Ltd. ("Kilo" or the "Company") (TSX VENTURE: KGL)(FRANKFURT: 02K) is pleased to announce results and interpretation of the detailed in-fill soil geochemical survey on the northern portion of the Ngazi Exploitation Licence of the Somituri Project in the Democratic Republic of Congo. Gold in soil anomalies on the Ngazi Licence delineated by reconnaissance sampling were previously announced (see press release dated August 13, 2012).


The Ngazi licence of the Somituri project is within the Archaean Ngayu Greenstone Belt. The licence is predominantly underlain with Upper Kabalian metasedimentary and metavolcanic rocks, including Banded Iron Formation ("BIF"). Granitic rock occurring within the western limits of the licence are considered to be younger than the orthogneiss basement, and possibly also of the Ngayu Greenstone Belt rocks.

Gold mineralization on the Somituri Project is shear zone hosted and occurs within all lithological units, however the thickest gold bearing zones intersected to date are associated with sheared BIF. Within the shear zones the gold mineralization typically has steep plunging 'high grade shoots.' Thus, it follows that anomalous gold-in-soil geochemical expressions can be very restricted, particularly in flat terrain where there is minimal lateral dispersion of the soil.

Gold values, from the Ngazi Licence, reconnaissance samples at a grid spacing of 400 metres by 100 metres illustrates a series of northeast trending zones in excess of five kilometres long of elevated and anomalous gold-in-soil values as illustrated on Figure 1; a contoured version of the data is illustrated in a press release dated August 13, 2012. The majority of the elevated and anomalous gold values occur in samples overlying, as well as near, the BIF contacts. Also, anomalous and elevated gold values were obtained in close proximity to the granitic and orthogneiss contact.

In-fill soil sampling at a grid spacing of 80 metres by 40 metres on the northern portion of the Ngazi Licence has delineated a four kilometre long northeast trending semi-continuous gold-in-soil anomaly, considered to be a shear zone, that occurs parallel to and in close proximity with the southeastern contact of the BIF as illustrated with a blue line in Figure 2. In addition, a cluster of anomalous gold-in-soil values overly the 'bend' (fold nose) in the BIF as illustrated by a blue ellipsoid in Figure 2. In addition a number of other delineated gold-in-soil anomalies are also illustrated on Figure 2. Gold values in the Ngazi soil samples overlying the BIF are analogous to the gold values obtained in soil samples overlying the Adumbi gold deposit on the Imbo Licence of Kilo's Somituri Project.

Preliminary conclusions on this cluster of anomalous gold values overlying the BIF is that it coincides with the intersection of a northwest - southeast trending interpreted shear structure and the northeast trending four kilometre long gold-in-soil anomaly associated with an interpreted shear zone. The interpreted intersection area hosts a greater frequency of high gold-in-soil values. Shear zone intersections, coupled with fold closures are ideal settings for gold mineralization. Dilation zones associated with the shear zone intersections provided the channel ways for the movement of mineralizing fluids. This is a high priority exploration target that warrants detailed mapping, pitting trenching and drilling.

Alex van Hoeken, President and CEO of Kilo, today stated:

"The delineation of gold geochemical anomalies, in several intersecting orientations overlying BIF is very encouraging and further confirms the exploration methodology of reconnaissance followed by infill soil sampling is an effective approach. The gold-in-soil values are similar to those obtained over the BIF that hosts the NI43-101 compliant inferred 1.36 million ounce Adumbi gold deposit grading 2.2 g/t Au on the Imbo Licence. The detailed soil geochemical survey on Ngazi has delineated a high priority exploration target that warrants evaluation. Given the success of the in-fill sampling in the northern portion of the Ngazi licence, the remaining gold-in-soil anomalies delineated by the reconnaissance sampling require in-fill follow-up soil geochemical sampling."


Sample collection: The soil samples were collected at a depth of approximately 30 centimetres in flat topographic areas and from an approximate 60 centimetre depth on hill slopes. The reconnaissance scale sampling was carried out at 100 metre intervals on lines 400 metres apart. In-fill follow up sampling was carried out at 40 metre intervals on lines 80 metres apart. Sample sites were located by GPS and GPS coordinates were recorded for each site. Approximately 2 kilograms of material present at the depth sampled was collected and placed into a plastic bag together with a pre-numbered sample tag and the bag was stapled shut.

Determination of anomalous gold values: Statistical analysis of the gold geochemical values obtained was carried out to determine the anomalous gold threshold value defined as the sample population mean plus two times the sample population standard deviation, after applying a statistical high-cut, as summarized in Table 1.

Table 1. Statistical summary of gold geochemical surveys.

                              Number of                Number of   Threshold
Survey type                 Samples (i)   High cut   samples cut       (ppb)
Reconnaissance                    2,113         59            24          28
Detailed (includes
 reconnaissance survey
 samples in area of
 detailed sampling)               4,733        184            89          84

Note: (i) Excludes quality control samples.

Quality control and analytical procedures: Sample preparation consisted initially of sorting the samples into numerical sequential order, followed by drying, crushing and pulverizing of the entire sample. Preparation of the samples was carried out at the Kilo owned, ALS Minerals managed and operated laboratory, at the Somituri Project exploration camp. Sample pulps were couriered to ALS Minerals full service laboratory in Johannesburg, Gauteng, South Africa from the Democratic Republic of Congo. Gold was determined on a 30 g charge by the Fire Assay with ICP finish method. In addition, multi-element analysis was carried out by the ICP method but only on the 2012 samples. ALS Minerals is accredited to international standards.

Analytical quality control was monitored by Kilo with the insertion of approximately 9% quality control samples consisting of duplicates as well as commercial reference materials, blank and standards, in every batch of samples submitted for analysis.


The Somituri Project comprises eight Exploitation Licences, covering 606 km2, valid until 2039, of the Archaean Ngayu Greenstone belt in the northeastern Democratic Republic of Congo.

According to historical records, which have not been verified by Kilo, colonial-era gold mines on the Imbo Licence, namely Kitenge and Manzako produced approximately 100 000 oz of gold to 1955, whilst the Adumbi/Bagbaie gold mines produced approximately 200 000 oz of gold, from quartz vein ore that averaged 11 g/t gold, during the 1950s until its closure in 1959.

Conclusions of an NI43-101 inferred resource estimate on the 2010 - 2013 drilling by Kilo of the Adumbi, Kitenge and Manzako deposits, calculated by Roscoe Postle Associates Inc ("RPA"), is presented in Table 2. Further details are available in a press release dated January 30, 2014.

Table 2. Current Mineral Resource estimate for the Somituri Project's Imbo Licence.

     Mineral Resource Estimate for the Somituri Project's Imbo Licence,
                              December 31, 2013
                                              Inferred Mineral Resources
         Mining       Gold Cut-off Grade  Tonnes  Gold Grade  Contained Gold
Deposit  Method                    (g/t)    (Mt)       (g/t)           (Moz)
Adumbi   Open Pit                   0.90   19.11         2.2           1.362
Kitenge  Underground                2.70    0.91         6.6           0.191
Manzako  Underground                2.70    0.77         5.0           0.122
Total                                      20.78         2.5           1.675

The following notes apply to tables 1 and 2IM definitions were followed for Mineral Resources.

1.  Mineral Resources were estimated at a cut-off grade of 0.9 g/t Au for
    Adumbi, constrained by a Whittle pit shell with a processing and G&A
    cost of US$30/t. A cut-off grade of 2.7 g/t Au was used for Kitenge and
    Manzako based on potential underground mining scenarios.
2.  Mineral Resources were estimated using a long-term gold price of
    US$1,200 per ounce.
3.  A minimum mining width of two metres horizontal was used.
4.  A maximum of four metres internal waste was used.
5.  Adumbi bulk densities of 1.8 for oxide, 2.2 for transition, and 3.0 for
    sulphide materials were used.
6.  Kitenge and Manzako bulk densities of 1.7 for oxide, 2.2 for transition,
    and 2.7 for sulphide materials were used.
7.  High gold assays were capped to 18.0 g/t Au for Adumbi, 50.0 g/t Au for
    Kitenge, and 50.0 g/t Au for Manzako prior to compositing at two metre
8.  Estimated historical mining has been removed.
9.  Numbers may not add due to rounding.


Kilo is a Canadian gold exploration company, listed on the TSX Venture Exchange under the symbol 'KGL' and on the Frankfurt Exchange under the symbol '02K'. Kilo holds exploitation and exploration licences covering some"2,700 km2 of iron and gold favourable Archean Kabalian Greenstones in the northeast Democratic Republic of the Congo.

Incorporated within this area is:

--  KGL Somituri SPRL (71.25% owned by Kilo), a holder of eight non-
    contiguous exploitation licences (606 km2).
--  KGL Isiro SARL (100 % owned by Kilo), a holder of 12 exploration
    licences covering some 2,056 km2. This project has been joint ventured
    with Randgold Resources since December 6, 2012, whereby Randgold can
    earn 51% by completing a Pre-Feasibility Study on a discovery. (see
    press release December 06, 2012).
--  Kilo retains the iron rights in the KGL Isiro permits, which were
    previously in joint venture with Rio Tinto, which ended in April 2013.
    RPA estimates that Mt Asonga may contain between 750 to 1,500 Mt of
    mineralized material, grading 59% Fe to 65% Fe focused on a 19 km2area
    on Mt Asonga.(1) Furthermore, the deposit is characterized by minimal
    overburden and intercepts up to 127 m with an average overall seam
    thickness of 70 m. There are numerous other targets with massive and
    laminated types of hematite mineralization (see press release September
    4, 2013).
--  In addition, Kilo has a minority interest in the Hajigak iron ore
    project in Afghanistan.


The soil geochemical surveys disclosed in this press release were planned and supervised by Stanley Robinson, the Company's Exploration Manager. Stanley Robinson, M.Sc., P.Geo is also the 'qualified person' (as such term is defined under National Instrument 43-101) of the Company who has reviewed and verified the scientific and technical information contained in this release.


This news release may contain forward looking statements concerning future operations of Kilo Goldmines Ltd. All forward looking statements concerning Kilo's future plans and operations, including management's assessment Kilo's project expectations or beliefs may be subject to certain assumptions, risks and uncertainties beyond Kilo's control. Investors are cautioned that any such statements are not guarantees of future performance and that actual performance and exploration and financial results may differ materially from any estimates or projections.

Neither 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.

To view "Figure 1. Map illustrating reconnaissance gold (ppb) in-soil samples overlying geology, Ngazi Licence, Somituri Project, DRC" and "Figure 2. Map illustrating gold (ppb) values in detailed soil geochemical survey overlying geology on the northern portion of the Ngazi Licence, Somituri Project, DRC", please visit the following link: http://media3.marketwire.com/docs/928056_FIGURES.pdf.

(1) Potential quantity and grade is conceptual in nature as there has been insufficient exploration to define a mineral resource.

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