VANCOUVER, BRITISH COLUMBIA, CANADA: 22 FEBRUARY 2023, KALO GOLD CORP. (“Kalo”, “Kalo Gold” or the “Company”) is pleased to provide an update on the exploration program at its flagship Vatu Aurum Gold Project (the “Project”) located in the Republic of Fiji (see previous news release dated 25 January 2023) and change in management.
BLEG Exploration Program
A bulk leach extractable gold (“BLEG”) sampling program, that is focussed on regional targets and previously unsampled drainages distinct from the Qiriyaga Hill and Mouta Prospects, has been completed and a total of seventeen (17) samples have been sent to ALS Perth in Australia for analysis. A regional scale infill stream sediment sampling program is ongoing and is scheduled to be completed by the end of February.
CSAMT Geophysical Program
The Company has contracted Fender Geophysics Pty Ltd (“Fender”) in Australia to complete a minimum 46.2-line kilometer (“km”) controlled-source audio-frequency magnetotellurics (“CSAMT”) geophysical survey. The CSAMT survey will initially cover a total of 12.5 square kilometers (“km2”) over the Qiriyaga Hill Prospect, which includes the high-grade epithermal gold mineralization of the Qiriyaga Hill and Vuinubu Ridge Gold Deposits. Given the typical heavy rains that occur until early April at the Project, the CSAMT equipment is scheduled to be shipped to Fiji in mid-March and surveying work is scheduled to commence in early April. The CSAMT survey will take approximately one month to complete after commencement. The CSAMT geophysical model will be created to define diamond drilling targets in consideration of the Company’s existing drill hole data, induced polarization geophysical information, trenching results, petrographic data and very importantly the Qiriyaga Hill Prospect geological and geochemical model that is currently being updated by the Kalo exploration team. Upon completion of this work further details on diamond drilling at Qiriyaga Hill Prospect will be reported.
Diamond Drilling Exploration Program
Following the end of the rainy season in early April, a road to Mouta Prospect (“Mouta”) will be refurbished to allow access for one of two of the Company’s diamond drill rigs to commence a planned five diamond drill hole program. Mouta is located approximately 9 km northwest of the Qiriyaga Hill Prospect (see Figure 1) on the flank of the Mouta Caldera which is approximately 2 km in diameter. Grid soil sampling by Kalo in 2021, covering an area of 1.2 km2 centered over the mineralized outcrop, defined both a 330-meter-long northeast trending and an intersecting 300 m long northwest trending coincident Au-Ag-As-Sb-Hg-Cu-Pb-Zn geochemical anomaly.
Mineralization at Mouta is characterized by the presence of massive black chalcedonic quartz veining with fine chalcopyrite and very fine disseminated pyrite on fresh surfaces and with malachite, azurite and chalcocite on weathered/oxidized sections (see Figure 2). Barite occurs in minor amount in intensely silicified sections. The Company previously reported high-grade gold-silver-copper mineralization assaying 6.2 grams per tonne (“g/t”) Au, 645 g/t Ag and 3.12% Cu and 3.06 g/t Au, 819 g/t Ag and 1.63% Cu from historical stockpile grab samples.
The Company also announces that it entered into a termination agreement dated February 16, 2023 with Mr. Alexander Tong and accepting his resignation as CFO of the Company effective 30 January 2023. Mr. Kevin Ma has consented to act as Interim Chief Financial Officer and Interim Corporate Secretary, in addition to his role as a Member of the Board of Directors of the Company and Executive Vice President, Capital Markets, and holds these positions at the discretion of the Board. Mr. Ma is a Chartered Accountant certified by the Institute of Chartered Professional Accountants of British Columbia.
The Company also announces that it has agreed to settle an outstanding indebtedness with Mr. Tong in the sum of $53,551 by the issuance of 446,260 common shares in the capital stock of the Company at a price of $0.12 per share and outstanding indebtedness with a non-related party in the sum of $18,000 by the issuance of 150,000 common shares at a price of $0.12 per share, which transactions are subject to the approval of the TSX Venture Exchange.
About Kalo Gold Corp.
Kalo Gold Corp, a gold exploration company, is focused on exploration for low sulphidation epithermal gold deposits of the Vatu Aurum Gold Project on the island of Vanua Levu (North Island) in the Republic of Fiji. Kalo holds a 100% interest in two Special Prospecting Licenses, covering 367 square kilometers (“km2”) that hosts a minimum of seven volcanic arc related calderas ranging between 1 kilometer (“km”) to 10 km in diameter in a geological setting analogous to the alkaline related low sulphidation epithermal gold deposits of both the neighbouring Vatukoula Gold Mine and the Lion One Metals’ Tuvatu Alkaline Gold Project. Historical exploration work includes 11,423 m of diamond drilling, concentrated on the Qiriyaga Hill and Vuinubu Ridge Gold Deposits and the identification of over fourteen priority epithermal gold exploration targets.
Both Viti Levu, (South Island), and Vanua Levu are on the prolific Pacific “Ring of Fire”, a trend that has produced numerous large deposits, including Porgera, Lihir and Grasberg and on Viti Levu, the exceptional Vatukoula Gold Mine. The Vatukoula Gold Mine has produced more than 7M ounces of gold since 1937. The island of Viti Levu also hosts the fully permitted Tuvatu Alkaline Gold Project, where Lion One Metals is fast tracking a low-cost high grade underground gold mining operation that contemplates a 300 tpd operation.
The technical disclosure in this news release has been approved by Terry L. Tucker, P.Geo. a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators.
On behalf of the Board of Directors of Kalo Gold Corp.
Terry L. Tucker, P.Geo
President and Chief Executive Officer
Kevin Ma, CPA, CA
Executive Vice President, Capital Markets and Director
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Forward Looking Statements Disclaimer
Certain statements in this release are forward-looking statements, which are statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include statements relating to the Company’s proposed drilling timeline and the proposed expansion of the exploration program, and the Company’s plans for future exploration on the Vatu Aurum Gold Project. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements included in this news release, other than statements of historical fact, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include quality and quantity of any mineral deposits that may be located, the Company’s inability to obtain any necessary permits, consents or authorizations required for its activities, the Company’s inability to raise the necessary capital to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company’s filing statement dated February 9, 2021 and latest interim Management Discussion and Analysis filed with certain securities commissions in Canada.
The reader is cautioned that assumptions used in the preparation of any forward-looking statements herein may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect, and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.