Loncor Resources Inc (TSE:LN) (OTCQX:LONCF) (FRA:LO51) has entered into two new agreements with its joint-venture partner Barrick Gold Limited in the Ngayu gold belt in the northeast of the Democratic Republic of the Congo.
In a statement Wednesday, Loncor said the ground covered by these agreements includes a number of priority exploration targets already outlined by Barrick, two of which are ready for initial scout core drilling.
Total acreage under the various Barrick/Loncor joint ventures in Ngayu now totals about 2,000 square kilometres (km).
READ: Loncor Resources hoping to add ounces to resource at Imbo project with new drilling program in the Democratic Republic of Congo
In the first new agreement, Loncor said three exploration properties in the Ngayu gold belt previously held by Barrick outside of its joint ventures with Loncor, have now been added to an existing Loncor/Barrick joint-venture agreement.
These three Barrick properties are located northwest of Loncor’s 100%-owned Makapela project, where indicated mineral resources of 614,200 ounces (2.2 million tons grading 8.66 grams per ton (g/t) gold) and 549,600 ounces (3.22 million tons grading 5.30 g/t gold) of inferred mineral resources have already been outlined by Loncor.
Two significant targets have been delineated by Barrick at Mongaliema (7km northwest of Makapela) and Ntokayulu (3km northwest of Makapela). At Mongaliema, trenching and augering is continuing along a west-northwest trending shear zone with trench results including 37.3 metres (m) grading 1.48 g/t of gold.
In the second new agreement, Loncor said it and Barrick have replaced the existing joint-venture agreement between Barrick and Loncor relating to the Isiro properties in the Ngayu gold belt, to focus on the three most prospective Isiro properties.
These three Isiro properties include two of the drill targets identified by Barrick, Yambenda, and Yasua -- which Barrick plans to drill as part of its ongoing drill campaign on priority targets in the Ngayu gold belt. At Yambenda, a 9.5km long banded ironstone ridge has a number of gold in soil anomalies.
In addition to the above agreements, a new drill target has been outlined by Barrick on one of the properties which is part of the Barrick/Loncor joint venture.
At the Mokepa target, Loncor said scout core drilling is due to commence shortly on a +250ppb gold-in-soil anomaly extending over 1,600m and where encouraging trench results of 110m grading 0.5 g/t gold and 32m grading 0.99 g/t gold have been outlined. At Mokepa, the mineralized system consists of banded ironstones in mafic volcanics sandwiched between conglomerate and carbonaceous shale.
“We are very encouraged with Barrick’s decision to further enhance the exploration potential of our joint ventures, especially when they have already delineated a number of high potential drill targets such as Yambenda and Mokepa,” said Loncor CEO Arnold Kondrat. “Barrick’s scout drilling program continues on other parts of our joint venture ground and we expect to announce preliminary drill results from other targets shortly.”
Amended joint-venture agreements
The terms of the amended Barrick JV and the New Isiro JV are substantially the same, Loncor said.
Under both JV agreements, Barrick manages and funds all exploration of the joint-venture ground until the completion of a pre-feasibility study. Once the joint-venture committee has determined to move ahead with a full feasibility study, a special purpose vehicle (SPV) would be created to hold the specific discovery area.
Subject to the Democratic Republic of the Congo’s free-carried interest requirements, Barrick would retain 65% of the SPV with Loncor holding the remaining 35%. Loncor added it would be required to fund its pro-rata share of the SPV in order to maintain its 35% interest or be diluted.
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