Loncor Resources announced that its joint venture partner, Randgold Resources (DRC) will commence a regional helicopter-borne VTEM B-Field, Horizontal Magnetic Gradiometer geophysical survey over Loncor's Ngayu project.
The survey, which will be conducted by Geotech Airborne Limited, is expected to commence in May 2016 and take three months to complete. The survey flight path design is north-south orientated lines at 400 meter spacing for a total of 10,000 line kilometres, of which 4,200 line kilometers will be flown over the Ngayu project.
Flight line spacing will be reduced to 200 meter line spacing over potential targets identified during the initial survey. It is estimated the airborne survey will cost approximately US$1.4 million to complete.
On completion of the VTEM B-Field, Horizontal Magnetic Gradiometer geophysical survey, this data will be integrated with the current airborne magnetic and radiometric geophysical, regional BLEG stream sediment, local soil geochemical and surface and trench mapping as well as historical drill hole data to define and prioritize targets within the Ngayu project.
On the ground exploration by Randgold is expected to commence in October 2016. Prior to commencement of field work, Randgold will review drill core from all historical targets.
As per the joint venture agreement signed in January (reference is made to Loncor’s January 19, 2016 press release), Randgold will manage and fund exploration of the exploration permit areas comprising Loncor’s Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Randgold.
Subject to the Democratic Republic of the Congo’s free carried interest requirements, Randgold would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.
Certain parcels of land within the Ngayu project surrounding and including the Makapela and Yindi prospects have been retained by Loncor and do not form part of the joint venture with Randgold.
Randgold shall have certain preemptive rights over these two areas. Loncor’s Makapela prospect has an Indicated Mineral Resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an Inferred Mineral Resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au).