Somituri and Isiro Projects - Corporate Presentation January 2018 - Kilo Goldmines
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Corporate Presentation January 2018
Somituri and Isiro Projects
Cautionary Notes
This presentation contains forward looking statements concerning future operations of Kilo Goldmines
Ltd. All forward looking statements concerning the Company's future plans and operations, including
management's assessment of the Company's project expectations or beliefs may be subject to certain
assumptions, risks and uncertainties beyond the Company'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. The
particulars contained herein were obtained from sources which we believe reliable but are not
guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and
interpretation and are not to be construed as a solicitation or offer to buy or sell the securities
mentioned herein.
No securities commission or other similar regulatory authority has reviewed or passed on the merits
of this presentation and any representation of the contrary is an offence. This presentation is not, and
under no circumstances is to be interpreted as, a prospectus, public information, solicitation or
advertisement for the sale or trade of securities.
Qualified Person
The qualified person (as such term is defined in National Instrument 43-101) for the purposes of
technical information in this presentation is Dr. Howard Fall, who is the consulting geologist of Kilo,
and has reviewed and approved the scientific and technical information contained in this presentation.
2
SHARE STRUCTURE KEY SHAREHOLDER
Ordinary Shares: 169,699,855 Resolute Mining Limited : 27.4%
Total Warrants: 138,741,636 @ average Board of Directors:
$0.19
David Netherway
Warrant terms :
John Welborn
Qty Exercise Price Expires:
Loudon Owen
13.0m $0.095 (Dec 2017)
Jim Mustard
9.3m $0.135 (July 2018)
90.7m $0.135 (Aug 2018)
24.7m $0.50 (May 2019) Management:
1.0m $0.25 (May 2019) Interim CEO/CFO: Philip Gibbs
Geology : Howard Fall
Options: 11,750,000 @ avg $0.10
Market Capitalisation (31/12/2017): CAD$6.8m
Cash (30/09/2017): CAD$2.0m
3
Flagship Somituri
Project
Isiro JV project
4
North East DRC regional activity
Kibali (RRL-AGA)
20 Moz @3.4g/t
Moto Belt
Isiro Belt
(KGL-RRL JV) Moku (RRL-SMB)
Zani-Kodo (Asa Res)
2.97 Moz @2.4g/t
Makapela
(Loncor)
1Moz@7.59g/t Ngayu Belt Mongbwalu (ex AGA)
2.5Moz
KGL’s Somituri Project
Adumbi 1.67Moz
5
Isiro JV project: property and
ownership
• Isiro Property:
12 licences; 2,056 km² ; Ngayu and Isiro greenstone belts
Challenge to title successfully defended
• Ownership: Joint Venture with Randgold Resources (“RRL”)
- RRL to earn 51% for the completion of a pre-feasibility study (“PFS”)
- KGL retains right to maintain 49% post PFS
- RRL to earn 65% for the completion of a bankable feasibility study (“BFS”) - should KGL not contribute
post PFS
- KGL equity to convert to 1.5% royalty if diluted to 10% or less
- Joint KGL/RRL project steering committee
- KGL retains exploration rights for iron ore
- RRL has five years to develop a PFS
- BFS to be established within a year of completing PFS
6
Somituri Project – Ownership & Funding
Ownership Share Holding
Title held by KGL Somituri Sarl
• 71.25% - Kilo Goldmines
• 5% - DRC State (free carry)
• 23.75% - Property Vendors (free
carry through BFS)
Upon BFS completion:
• Property vendors contribute pro rata
to further financing or cede their
participation to KGL in exchange for
1% Vendor NSR
DRC State: 2.5% NSR
7
Somituri Project property package
N
• 6 Mining Licences – valid until 2039 Makapela
• 361 km² total in the Ngayu SOMITURI
Archean Greenstone Belt PROJECT
• Imbo licence containing NGAZI
inferred resource has only
been partially explored and is the NGAYU
only licence of the six to have GAMBI GREENSTONE
undergone any drilling to date BELT
• Latest Diamond Drill program IMBO
totalling 6,906m completed June BORODA NANE Adumbi Manzako
2017 on Imbo Kitenge PE9691
• Stream sediment sampling on
other licences completed in August
2017 DHAHABU
PE9695
Historical Gold Mine
Gold Occurrence
20 km
Yindi
8
Somituri Project – Imbo licence
Location of prospects and drill holes
Geology
N BIF within Mafic Volcanic Package
BIF within Sedimentary Rock Package
Mafic Volcanic Package
Sedimentary Rock – Various Schist Units
Mafic Dyke Prospects
Faults
Drill Hole Collars • Adumbi - BIF Hosted
Adumbi • Canal - Banded Chert Hosted
• Kitenge - Quartz Carbonate Schist Hosted
Prospect • Manzako - Sheared Basalt Hosted
Canal
Adumbi West Senegal Vatican
Manzako
Adumbi South
Prospect
Kitenge extension
Kitenge
Prospect
Imbo Maiepunji
River
5 km Workings
9
Somituri Project - Imbo licence
Inferred Resource
Ø Drilled 201 holes for a total of 41,224 metres
Inferred Resource
ProspectTons Grade Contained Gold
Ø 45 km of IP survey (MM) Au (g/t) (000 oz)
Adumbi 19.11 2.2 1,362
Ø Trenching, soil and stream sediment BLEG sampling Kitenge 0.91 6.6 191
Manzako 0.77 5.0 122
Ø Inferred Resource of 1,675,000 ozs Total 20.78 2.5 1,675
Cut off grade - Adumbi: 0.9 g/t Au
Cut off grade - Kitenge & Manzako: 2.70 g/t Au
.
Adit – Channel Sampling Core Logging Stream Sediment BLEG Sampling
10Somituri Project – Imbo licence
Diamond drilling totalling 41,224 metres
Ø 2010 – 2013: 163 holes for 34,318 metres - basis for current Inferred Resource
Ø 2016 – 2017: 38 holes for 6,906 metres including:
§ 4 holes (1,776 metres) testing down-dip extension of Adumbi Prospect RP Zone
Significant results at depth include:
SADD0050: 434.73 – 447.42 m = 12.69 m @ 5.51 g/t Au (Including 5.49 m @ 9.67 g/t Au)
SADD0051: 393.43 – 402.72 m = 9.29 m @ 4.09 g/t Au
SADD0052: 389.72 – 401.87 m = 12.15 m @ 3.24 g/t Au
419.15 – 428.75 m = 9.60 m @ 5.04 g/t Au
SADD0053: 346.36 – 355.63 m = 9.27 m @ 3.71 g/t Au
391.72 – 415.17 m = 23.45 m @ 6.08 g/t
§ high grade mineralisation associated with RP Zone
§ highlights underground potential
11Somituri Project – Ngazi licence (PE9692)
2017 stream sediment BLEG program
12Somituri Project – Imbo licence
Adumbi prospect
13Next steps
v Advance exploration either through in-house or joint venture programmes
o Target generation east of the Imbo River
- soil sampling, trenching, augering
o Soil geochemical sampling programs in drainages basins yielding gold-in-stream
BLEG anomalies, pitting and mapping on unexplored licences
o Mineralogical and metallurgical test work on the RP Zone drilled at Adumbi Prospect
o In-fill drilling at the Adumbi Prospect; updating the NI 43-101 resource report to include
results from drilling at depth.
v Evaluate and acquire additional prospective properties to enhance Kilo’s land package.
14APPENDIX
TECHNICAL SLIDES
15Geology & Mineralization
Ø Ngayu Greenstone Belt has similar geology and mineralization styles to the DRC’s Kibali Greenstone
Belt which hosts approx. 28MM oz @ 3 g/t Au.
Ø Kibali’s three main lodes that host 70% of the mineralization surface expressions were swamps that
had diameters of 250 m to 300 m.
Ø Lithology comprised of intercalated quartz
carbonate schist, banded ironstone
formation (BIF), carbonaceous shale and
basalt and minor diorite and dolerite
intrusives.
Ø All lithologies have a predominant northwest-
southeast strike, dipping steeply to the northeast.
Banded ironstone has undergone complex
folding and as a result has an apparent
thickening where mineralised, such as at Adumbi
Ø Mineralization is associated with
northwest-southeast shear zones that dip
steeply to the northeast.
Ø Mineralisation is hosted in all the dominant
lithologies but best developed in BIF lithologies
where intense sulphidation of magnetite is
observed. Mineralisation hosted in quartz
carbonate schists and basalts is associated with
quartz veining higher grade and narrower in
width in comparison to BIF hosted mineralization.
16Exploration Expertise
Ø A technical management team that has significant experience in Ngayu Greenstone Belt and other
Greenstone Belts in east and west Africa.
Ø A technical team that has made significant discoveries which have and are currently being mined (Geita,
Buswagi & Bulunghulu – Tanzania; Twangiza & Namoya – DRC, Yamfo/Sefwi & Akym – Ghana).
Ø Back to geological first principles, mapping, logging, plans, sections and long sections in order to understand
the geological controls of mineralization.
Ø The team has conducted an extensive review of all KGL’s previous drill core and other exploration data
together with new exploration data and has identified three drill targets in close proximity to the Adumbi
prospect: Adumbi West, Adumbi South, Canal Extension and the Kitenge Structure
Ø These prospects have coincident artisanal workings, geochemical and geophysical features that have never
been drill tested.
Ø A management team that is engaging with all stake holders at all levels within the DRC.
17Operating Principles in the DRC
Ø Transparent and proactive engagement with all relevant stakeholders in the DRC.
• Have had meetings with all stake holders in the DRC - relevant government authorities at Central
(Kinshasa), Provincial (Kisangani, Orientale Province), Regional (Bunia), District (Mombasa) levels. In
addition have had meetings with Traditional Leadership at Adumbi.
Ø Three points raised with all stake holders are:
1. Dealing with Corruption
2. Security
3. Artisanal Miners
Ø Corruption – the government has a 5% free carry stake and a 2.5% NSR. Therefore they are partners and they
have a responsibility to help KGL develop the assets.
Ø Security – military and police are poorly trained, have poor discipline and are paid on an irregular basis.
Requested the relevant authorities to rotate the military and police out on a quarterly basis as they get entrenched
in illegal activities such as artisanal mining logging etc. This is being done.
Ø Artisanal Miners - KGL does not have an issue with local traditional artisanal miners. Semi-industrial mining
(blasting, water pumps, crushers, processing (cyanide, mercury) has to be stopped. Government have been
actively engaged in trying to curb semi-industrial artisanal mining. Numerous illegal foreigners have been arrested
and deported.
18Adumbi Geology
• Lithologies group into the following:
• Hangingwall Schist
• Upper BIF Sequence
• Carbonaceous Marker
• Lower BIF Sequence
• Footwall Schist
• Middling Schist
• Chlorite Schist
• Canal BIF Chert Zone
• Lithologies strike northwest and dip steeply to
the northeast
• Little structural understanding as little previous
mapping has been collated and core not
orientated – (work in progress)
19A d u m b i - G e o l o g i c a l Cross Section
Cross Section
Replaced Rock Zone
• Strong silicification, sulphidation
& structural deformation of the
host rock has totally destroyed
the primary lithological
characteristics
• Strike = 840 m
• Traced down to 275 m
• Cross cuts lithologies
• Structural conduit for mineralized
hydrothermal fluids
20Adumbi - Mineralization Cross Section
RP Zone
Strike = 840 m
Depth = 275 m
Av True Width = 4.91 m
W’ted Av Grade = 5.55 g/t Au
Central RP Zone
Strike = 480 m
Av True Width = 6.25 m
W’ted Av Grade = 6.25 g/t Au
Cut off grade 0.5 g/t Au
Internal dilution of 3 m
21Adumbi – Long Section
Steep plunge of 80 - 90 NW is similar to the
fold axes attitude noted in the U/G mapping
22Kitenge Prospect
598000,000000 598400,000000 598800,000000 599200,000000 599600,000000
SKDD 0038SKDD 0039
!
190400 ,000000
190400 ,000000
±
SKDD 0040
!
• Three Quartz-Carbonate Schist
SKDD 0041
!
SKDD 0017
! SKDD 0042
SKDD 0044
!
SKDD 0029SKDD 0030
! Packages.
!
SKDD 0045
! 0032
• Carbonaceous Schist
developed primarily in the
SKDD 0031SKDD SKDD 0053
! !
SKDD 0047 SKDD 0020
SKDD 0019
!
SKDD 0049 SKDD 0051
! Upper Schist Package
!
! SKDD 0034SKDD
• Mineralization hosted in Quartz
0036 !
Kitenge Main Zone !
SKDD 0035
!
Carbonate Schist
190000 ,000000
190000 ,000000
SKDD 0001 SKDD 0021
! ! SKDD 0056
SKDD 0037SKDD 0057!
!! SKDD 0024
! • Numerous northwest striking,
!
SKDD 0022 steeply dipping quartz veins
SKDD 0046SKDD 0048
!! host mineralization
SKDD 0003SKDD 0028
!! !
SKDD 0015
• Kitenge Main Zone
GEOLOGICAL LEGEND !
SKDD 0050 Kitenge Main Zone
not Intersected
mineralization is approximately
Quartz Vein !
SKDD 0013
!
SKDD 0010 700 m long.
189600 ,000000
189600 ,000000
SKDD 0052
Quartz Porphyry !
!
SKDD 0012
Upper Schist SKDD 0011
!
Middle Schist Shear Zone Associated with !
SKDD 0055
Quartz Porphyry SKDD 0004
Lower Schist ! SKDD 0025
SKDD 0008 ! SKDD 0026
! !
Carbonaceous Schist SKDD 0006
SKDD 0054
! ! SKDD 0005 !
SKDD 0009
! SKDD 0007 SKDD 0002
! !
SKDD 0027
!
189200 ,000000
189200 ,000000
High Grade Vein
KGL- SOMITURI PROJECT
KITENGE PROSPECT
SURFACE GEOLOGICAL MAP 400 200 0 400 Meters
598000,000000 598400,000000 598800,000000 599200,000000 599600,000000
23Kitenge Prospect Cross Section
Kitenge
Main Zone
4.00 m @ 61.19 g/t
2.75 m @ 36.84 g/t
1.32 m @ 14.94 g/t
24Applying Adumbi Model Elsewhere
N
Adumbi West Adumbi Prospect
Adumbi • Strong Soil Anomaly (+100 ppb Au)
• Strong Airborne Magnetic Feature
• Topographical High
• BIF Hosted Mineralization
N
1 km Adumbi West
Analytical Signal and Soil Geochemistry
Adumbi
Adumbi West Prospect
• Weak to Moderate Spiky Soil Anomaly
• Strong Airborne Magnetic Feature
• Topographical Low
• Localized transported overburden
• BIF Hosted Mineralization?
DTM and Soil Geochemistry 1 km
25Adumbi West Regolith
0.00 m N 0.00 m
0.70 m
1.00 m
1.30 m 1.00 m
2.00 m
Pit – 01
Au - 1,640 ppb 2.00 m
Pit – 03
Au - 72 ppb
0.00 m
0.00 m
1 km
0.90 m
• Soil Samples collected at 1 m depth
1.50 m • Predominantly transported cover Legend
1.40 m
• Weak – moderate soil anomaly Transported Soil Without
1.80 m
• Bioturbation? (Cause of anomaly in Rock Fragments
Transported Soil With
2.30 m transported material?) Angular Rock Fragments 2.30 m
Pit – 02 • BIF fragments seen in termite mounds Transitional
Zone
Pit – 04
Au - 35 ppb
Au – 319 ppb
• If BIF, why deeply eroded? Saprolite
26Adumbi West and South
5 km
v Drill Testing v Drill Costs
Ø Drill lines 160 m apart Ø Approx. $1.12MM @ $183 / m (Drill + assay costs)
Ø Drill Depth 100m
Ø 58 drill holes for 6,128 m
27Adumbi West and South
Canal Intersections
SCDD0001 - 12.55 m
@7.70 g/t Au
SADD0006 - 11.35 m
@3.45 g/t Au
SCDD0004 - 6.45 m
5 km
@ 4.21 g/t Au
Adumbi West
Drill Collar
Kitenge Structure
Adumbi Structure
Fault
Demagnetised BIF?
Adumbi South
Soil Geochemistry
Camp
CANAL
v Adumbi West v Adumbi South
Ø Coincident Magnetic Feature & Soil Geochemical Anomaly Ø Coincident De-magnetized Magnetic Feature & Soil Geochemical Anomaly
Ø Approx. 1.7 km of strike Ø Approx. 1.4 km of strike
Ø Transported soils cover target, yet anomaly strong and linear Ø Transported soils cover target, yet anomaly strong and linear
28Adumbi Prospect
Pole – Dipole IP Orientation Survey
• IP Orientation Survey over the Adumbi and Canal
Zones clearly outlines mineralization
• IP is being conducted over the Adumbi West
Prospect
• Canal drilling possibly missed the mineralization
Resistivity
Adumbi
Chargeability
Wireframes of Zones 1, 2 & 3
Mineralization
Resistivity
Wireframe of Canal
Mineralization
Canal
Chargeability
29Imbo licence:Stream Sediment BLEG
Program
30Isiro licences – JV with Randgold
Resources
Thrust duplication
Major belt orientation change
Intersecting structures
Lithological units disruption
Major regional fold Significant folding
Highly favorable geology with features
conducive to gold mineralization –
characteristics akin to major RRL discoveries
Significant folding
Structure displacement
Fold hinge
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