Resolute acquires interest in DRC-focused explorer

JOHANNESBURG (miningweekly.com) – Australian mining firm Resolute Mining has acquired a 14.6% interest in Canadian explorer Kilo Goldmines, which is advancing projects in the Democratic Republic of Congo (DRC).

Resolute bought 24.7-million shares, at a cost of A$2.5-million, in Kilo’s recently completed private placement.

Kilo’s exploitation and exploration licences in the DRC cover some 2 417 km² of favourable Archean Kabalian greenstones in the Ngayu belt. This area is historically referred to as the Kilo-Moto region, a semi-continuous Archaean Kabalian greenstone belt hosting a number of active gold projects.

Kilo’s corporate strategy is to advance, solely or in partnership, gold prospects in the Kilo-Moto region. Incorporated within Kilo’s DRC licences is the 71.25%-owned Somituri project, comprising six non-contiguous licences.

The project has delineated a National Instrument 43-101-compliant inferred gold resource estimate of 1.67-million ounces at 2.5 g/t.

Kilo is currently delineating a number of other highly prospective targets within a 5 km radius of the Adumbi resource, with the ultimate objective being to grow the gold resource base on this licence significantly and create a multi-pit operating mine of regional significance.

Resolute MD and CEO John Welborn said the acquisition advanced the company’s corporate strategy of building a portfolio of investments in “well run, highly-prospective, gold exploration assets in regions considered to hold potential for the development of future Resolute gold mines”.

“Kilo is a perfect match for our criteria of existing asset quality, future prospectivity, relative value, and an experienced capable management team primarily focused on gold project exploration and development,” he added.