Kore Mining outlines 2023 Long Valley exploration plans, California
Kore Mining Ltd. [KORE-TSXV; KOREF-OTCQX] provided details of its 2023 exploration plan for the Long Valley gold and silver project, California. The plan includes drill testing the highest-priority shallow oxide resource growth targets as well as the underlying high-grade sulphide feeder structure targets.
Highlights: All permitting completed and reclamation cost has been pre-paid to the USFS to return site to natural state; approved plan of operation with USFS to drill up to 36 core holes from 12 drill pads; drill test highest priority shallow oxide resource expansion and untested underlying sulphide “feeder structures” targets – minimum 3,000-metre program for Phase 1 drilling.
Feeder structure drilling designed to drill below high grade historic drill holes that ended in mineralization (examples: LV96-260 2.65 g/t gold over 250 feet ending in 4.32 g/t gold and LV96- 248 2.63 g/t gold over 225 feet ending in 2.41 g/t gold); potential to expand drilling to 15,000 meters, if warranted; further mapping and geochemical sampling on new structural targets.
Kore’s Chairman and CEO James Hynes stated: “We are excited to execute on the 2023 exploration plans. We have been working closely with the USFS and have designed a targeted, low impact drill program. The untested feeder zone drill targets are our highest priority in addition to oxide resource expansion. The core drilling is expected to improve the geologic model and will also be assayed for silver for the first time at the project.”
The company is currently exploring strategic financing options to fund the planned activities at Long Valley.
Kore granted an aggregate of 400,000 stock options to Mezzo Consulting Services S.A., a consultant of the company pursuant to the company’s Stock Option Plan and 7,000,000 deferred share units (DSUs) to directors in accordance with the company’s Omnibus Plan. The Stock Options are exercisable at $0.05 per share for five years and vest immediately on the date of grant. The DSUs are redeemable into common shares of the company at a deemed price of $0.05 per share and vesting in equal one-third parts on the date of grant, on the first anniversary of the date of grant, and on the second anniversary of the date of grant. All Stock Option and DSU grants remain subject to the approval of the TSX Venture Exchange.
Kore intends to settle certain outstanding accounts payable in the aggregate amount of $140,000 owing to an officer and director of the company through the issuance of up to 2,800,000 common shares of the company at a deemed price of $0.05 per common share.
The company, subject to regulatory approval, engaged the services of Mezzo Consulting Services S.A. whereby Mezzo will act as a marketing consultant and provide various market-making services.
Under the agreement, Mezzo will receive $60,000 for a term of six months. The company also granted Mezzo 400,000 stock options.
Long Valley is a 100%-owned epithermal gold and silver project located in Mono County, California.
A total of 896 holes have been drilled on the Project, the majority being completed by reverse circulation with lesser core, rotary and air track. The current mineral resource estimate is 1,217,000 ounces of Indicated gold and 456,000 ounces of Inferred gold from 63.7 million tonnes of 0.58 g/t and 22.0 million tonnes of 0.65 g/t, respectively. The mineral resource consists of oxide, transition and sulphides.
A Preliminary Economic Assessment for a shallow, low-strip heap leach Au-Ag project was filed October 27, 2020 with the following highlights: US $273 million NPV 5% post-tax with IRR of 48% at US$1,600/oz gold; significant leverage to gold: US$395 million NPV 5% at spot US$1,900/oz gold; 102,000 oz gold per year over 7 years mine life; technically simple: shallow open pit, heap leach with nearby infrastructure; unmodelled silver potential from metallurgical test-work; shallow oxide and sulphide feeder exploration potential to further enhance project.