Loncor Gold Inc. (TSX:LN, OTCQX:LONCF) said its previously-announced preliminary discussions with potential strategic partners to develop gold deposits in the Democratic Republic of the Congo (DRC) are continuing.
The Africa-focused gold explorer noted that the initiation of these discussions was driven largely by the Preliminary Economic Assessment (PEA) conducted on the company's 84.7%-owned Adumbi deposit, at which the estimated average annual gold production was 303,000 ounces per year over a 10.3-year mine life.
Loncor said it believes there is excellent exploration potential to increase mineral resources at Adumbi and within the company's Imbo Project area.
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It added that 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.
The company also said 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 underground, increasing annual gold production and reducing operational costs.
Loncor also said there are several deposits and prospects close to Adumbi that have the potential to add mineral resources and feed for the Adumbi mine development, which includes the company's 100%-owned Makapela deposit, where an Indicated mineral resource of 614,200 gold ounces at 8.7 grams per tonne (g/t) plus an Inferred mineral resource of 549,600 ounces of gold at 5.3 g/t have been outlined to date.
Loncor Gold is a Canadian gold exploration company focused on the Ngayu Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo (DRC). The Loncor team has over two decades of experience of operating in the DRC and the company's growing resource base in the Ngayu Belt currently comprises the Imbo and Makapela Projects.
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