Loncor Gold has the attention of major miners with its prospective gold projects in the DRC

Loncor Gold Inc (TSE:LN) (OTCQX:LONCF) is sitting on some very valuable land in the mineral-rich Ngayu Belt of the Democratic Republic of the Congo.

The Ngayu Belt is 220 kilometres southwest of the Kibali gold mine, operated by Barrick Gold, which produced a record 814,000 ounces at an all-in-sustaining-cost of US$693 per ounce. 

Loncor’s flagship project, Imbo, sits on the eastern portion of the belt and contains numerous targets including three resource-bearing gold deposits. A mineral resource released in April 2020 outlined an inferred resource for the Adumbi, Manzako and Kitenge deposits at nearly 30.7 million tons grading at 2.6 grams per ton gold for just over 2.5 million ounces of the yellow metal, most of which comes from the high-priority Adumbi target. Loncor currently owns a nearly 85% interest in the project.

Given the proximity of the belt to Kibali, Barrick has taken an interest in Loncor. The two firms signed a joint venture agreement in 2016 that sees the mining major earn up to 65% of any discovery within a group of 12 exploration permits along the Ngayu Belt. Under the agreement, Barrick manages and funds exploration in the permit areas until the completion of a pre-feasibility study on any gold discovery. If the two companies should decide to move ahead with a full feasibility study, they would then create a special purpose vehicle to hold the specific discovery area where Barrick would retain 65% and Loncor would hold 35%. 

Barrick is not the only mining company to hold an interest in Loncor, however: Australia’s Resolute Mining owns 26.5% of the company, making it Loncor’s largest shareholder. Through its investment, Resolute gains exposure to Loncor’s entire project portfolio, which includes Imbo and three other 100%-owned properties that are excluded from the Barrick JV.

In a country with a strong mining industry, and with two major backers, Loncor is on the way to outlining major new precious metal areas.

How is it doing:

In early June 2021, Loncor Resources changed its name to Loncor Gold Inc, to better brand itself as a gold focused explorer. Shares of the company continue to trade on the Toronto Stock Exchange under the same ticker, LN.  

Prior to the rebranding announcement, the precious metals company reported significant assay results from its drilling program at the Imbo Project, at the Ngayu Greenstone Gold Belt in the northeast of the Democratic Republic of the Congo. 

The Canadian gold exploration company revealed that borehole LADD013 drilled at its flagship Adumbi deposit, intersected 20 meters grading 4.21 grams per ton (g/t) gold (including 11 meters grading 6.91 g/t Au), 17.30 meters grading 2.48 g/t gold (including 8.20 meters grading 4.71 g/t Au), and 7.04 meters grading 2.68 g/t gold. 

This follows a 44% increase to the open pit inferred resource at its Adumbi deposit. The increase raised the inferred gold ounces from 2.9 million stated in a 2020 report, to 3.15 million.  

The double-digit uptick in inferred resource, as well as the positive assays boosts the total inferred resource for the entire Imbo project, which contains the Adumbi, Kitenge and Manzako deposits, to a total of 43 million tons grading 2.51 g/t Au.  

Loncor Gold began the preliminary economic assessment (PEA) phase at the Imbo project in 2Q 2021.  

On a corporate level, Loncor recently closed a C$5 million financing earmarked for drilling at Adumbi and listed its shares on the Frankfurt Stock Exchange in early February.  

Inflection points:

• Release of preliminary economic assessment for the Imbo Project 
• Increase resource base at 100%-owned Makapela project 
• More news from ongoing Barrick drilling in the Nyagu Belt 
• Delineate potentially significant underground resource at Adumbi 

What the boss says:

Commenting on the recent developments at the Adumbi deposit, Arnold Kondrat, CEO of Loncor Gold, said: “The company continues to develop its flagship open-pit Adumbi gold deposit. More than 3,450,000 inferred ounces of gold have been identified to date on the Imbo license. Our current drill program, which has had tremendous success in adding to the gold resource at Adumbi, demonstrates Adumbi continues at depth with higher grades and widths.”  

He added: “We believe Adumbi has the potential to continue to grow significantly from the ongoing drill program, into a Tier 1 deposit. In addition, discussions are underway on how best to mix the company’s high-grade Makapela deposit located 50 km away into any future mine plan at Adumbi.”