Vancouver, BC November 24, 2020 – KORE Mining Ltd. (TSXV: KORE | OTCQX: KOREF) (“KORE” or the “Company”) announces that the Board of Directors is considering maximizing the value of its gold portfolio by splitting KORE’s US development assets and Canadian exploration assets into separate publicly listed companies by way of a “spin-out” (“Transaction”) to KORE shareholders. The Board has authorized management to consider the various transactional options to accomplish this objective in the most tax efficient and value creating manner. It is anticipated a decision will be made in the coming weeks and a Transaction could be completed as early as Q1 2021.
If the Transaction is completed, the new stand-alone publicly listed gold company would include the Canadian exploration assets, consisting of a commanding 1,000 kilometers square claim position in the Cariboo Gold District including the FG Gold and Gold Creek gold projects – see Figure 1. The Cariboo region of British Columbia is an active and experienced mining jurisdiction that is host to Osisko Gold Royalties Ltd’s (TSX:OR) Cariboo Gold Project and several large operating copper-gold mines. KORE would retain the US gold development pipeline assets with the Imperial gold project and the Long Valley gold project.
Scott Trebilcock, President and CEO stated, “With a dominant 1,000 square kilometre position in a highly prospective gold district, including the recent transformational high-grade discovery at FG Gold, KORE’s South Cariboo gold assets are an exceptional gold exploration story. It is also a great time for the Cariboo gold district with Osisko’s aggressive exploration and development activity attracting attention and capital. The spin-out would directly expose KORE shareholders to the value creation potential of this impressive exploration story.”
The Company recently intercepted 14.3 meters of 6.4 g/t gold at 386 meters downhole at FG Gold (see November 11, 2020 news release). This new discovery, which extends over 300 meters downdip from the known resource, opens up underground potential and could have a profound impact of the size and grade of the FG Gold deposit – see Figure 2. Assays are pending for additional 14 holes over a 1,780 meters of lateral strike with 7 holes intersecting quartz veining with visible gold (see pictures on website). Drilling continues with 2,000 metres planned to expand Gold Creek through mid-December.
Mr. Trebilcock continued, “KORE will retain the Imperial and Long Valley development assets; simple, low cost gold heap leach projects in the US, each with their own robust returns and the potential to produce nearly 250,000 ounces of gold per year. KORE would remain attractive to investors looking for exposure to low cost gold development and potential mergers and acquisitions that quality assets can generate as the gold cycle matures.”
A final decision has not been made and there can be no assurance that this evaluation will result in a spin-out or other similar transaction. The Company will provide further updates at such time as the Board approves a specific transaction or otherwise concludes that disclosure is necessary or appropriate.
About KORE’s South Cariboo Exploration Assets
KORE controls 1,000 square kilometers of claims in its South Cariboo Gold District of British Columbia. The claims host 110 km of structural trend that is highly prospective for gold deposits. KORE has multiple projects in the District, including FG Gold and Gold Creek gold projects. Much of the area is under-explored and wide open for additional discoveries. The Cariboo region is a prolific gold region. The District was host to the Cariboo gold rush in the late 1800’s, followed by a long history of modern gold mining. The Cariboo region is accessible with local power, a well developed road network and skilled local labour.
The FG Gold project hosts an orogenic gold deposit on a 20 kilometer trend defined by gold in soils and geophysics. KORE’s 2020 drilling transformed the project, opening up the potential for both open pit and underground type mineralization. The project also hosts copper-gold porphyry mineralization at the Nova Zone, discovered by KORE in 2018.
The Gold Creek project is an orogenic gold discovery centered on the “Camp Zone” which show similarities to the high-grade zone of the nearby Spanish Mountain Gold Deposit (TSXV:SPA). The Camp Zone’s near surface mineralization currently extends over 400 metres along strike and is open along both strike and at depth. KORE is currently drilling a planned 2,000 meter program to expand Gold Creek.
About KORE’s US Development Assets
Imperial is a 100% owned gold project located in Imperial County, California about 10 miles from the operating Mesquite mine owned by Equinox Gold Corp. (TSX: EQX). In 2020, KORE completed a Preliminary Economic Assessment for an open pit heap leach operation yielding a post-tax NPV5% of $US 343 million and an IRR of 44% using $1,450 per ounce gold. KORE also owns the Mesquite-Picacho District capturing the 28 km gold trend from Equinox’s operating Mesquite mine, through Imperial to the now closed Picacho mine. The trend is underexplored and has the potential to host additional gold deposits.
Long Valley is a 100% owned gold project located in Mono County, California. The Long Valley deposit is an intact epithermal gold deposit with a shallow, large 2.5 by 2 kilometer oxide gold footprint. In 2020, KORE completed a Preliminary Economic Assessment for an open pit heap leach operation yielding a post-tax NPV5% of $US 273 million and an IRR of 48% using $1,600 per ounce gold. KORE is currently permitting a drill program to expand the shallow oxide mineralization and test for high grade sulphides at depth.
About KORE Mining Ltd.
KORE is 100% owner of a portfolio of advanced gold exploration and development assets in California and British Columbia. KORE, supported by strategic investor Eric Sprott; and insiders, including management and Board, own 64% of the basic shares outstanding. Further information on KORE and its assets can be found on the Company’s website at www.koremining.com and at www.sedar.com, or by contacting us as info@koremining.com or by telephone at (888) 407-5450.
On behalf of KORE Mining Ltd
”Scott Trebilcock”
Chief Executive Officer
(888) 407-5450
Investor Relations
Arlen Hansen, KIN Communications
1-888-684-6730
kore@kincommunications.com
