South Kivu Gold Projects – South Kivu Province, DRC

Project Structure

Regal SK SPRL holds a 50% interest in a block of 14 exploration permits covering 1,970km² in the South Kivu Province of the DRC, with JV partner Afrimines Resources SPRL.  Afrimines is the mining investment arm of the Orgaman Group, which is a privately-held company that has been operating in the DRC for almost 80 years.

Project Overview

The South Kivu Project area is located in the northwestern part of the Kibara Mobile Belt (KMB) which occurs along the western margin of the Central African Gold Belt (Tanzania Craton).  Eastern DRC, which hosts the KMB, remains one of the last exploration frontiers in this highly prospective and historically productive gold-bearing region.

The Company has two principal project areas – Ngoy and Matala.

Ngoy Project

The Ngoy Project consists of three anomalies – Nyamikundu, Kadutu and Kabitako.

To the northern end of the Ngoy Prospect is Kabitako, which comprises a 1.4km long coincident gold-arsenic anomaly, which remains open to the north. The soil anomaly follows a north-northeast trending ridge. Regal Resources believes that the source of the gold exploited in the extensive alluvial workings is from eroded quartz veins exposed along the slopes of the ridge.

Central to the Ngoy Prospect area is Nyamikundu, which is a northwest-trending, coincident gold-arsenic anomaly approximately 200m long and has been delineated from soil sampling activities.

The Kadutu target is located at the southern end of the Ngoy Prospect area and diamond drilling has tested the northeast and southwest segments of a larger soil anomaly.

Matala Project

The Matala Project comprises two anomalous areas, being Matala East and Matala West, located along a 60km regional shear zone.

Matala East

Previous soil sampling activities undertaken at Matala East have returned values of up to 4.12g/t Au and support the extension of anomalous mineralisation to the west of the prospect. In addition, sampling also identified a series of four new anomalies, one lying to the east and the three others to the west of the original Matala East anomaly.

Matala West

A review of 2010 data subsequently identified an area of anomalous stream sediment sampling coincident with intense artisanal activity at Matala West, 10km along strike of the Matala East Prospect area.

Through extensive soil sampling activities over a 100m x 400m spaced north-south grid over a 9.5km strike, four anomalous areas were identified:

  • Anomaly MW1
  • Anomaly MW2
  • Anomaly MW3
  • Anomaly MW4

Upon further analysis, Regal identified MW3 and MW4 as the standout targets and named them Temo Temo and Kanana respectively.

The permits have significant exploration upside and are located in an underexplored, emerging gold province known as the Kibara Mobile Belt. To highlight the potential of the surrounding region, Banro Corporation has delineated a reported 17Moz Gold deposit and has developed two mining operations at Twanguiza (approx. 8.5Moz) and Namoya (approx. 2.2Moz).

Project Results

Regal Resources has released a Maiden JORC reported Mineral Resource estimate for the Ngoy Project – 2Mt @ 3.3g/t Au for 213,000oz.  TheMineral Resource estimate covers the Kadutu and Nyamikundu prospect areas, which fall within the Ngoy Project, which is part of the Regal SK JV.

Ngoy Project -Mineral Resource Estimate (March 2014).

Regal Resources Limited – Kadutu Prospect – Mineral Resource Estimate
Deposit Classification Tonnes (Million Tonnes) Au g/t Au Oz. (‘000s)
Kadutu Inferred 1.8 3.2 186.9
Nyamikundu Inferred 0.2 4.3 26.5
Combined Total Inferred 2.0 3.3 213.4
Note: The Mineral Resource was estimated within constraining wireframe solids based on a nominal lower cut-off grade of 0.4 g/t Au. The Mineral Resource is quoted from all blocks within the interpreted mineralisation zones. Differences may occur due to rounding.

The Ngoy Gold Project is a greenfield’s discovery that resulted from regional stream and rock chip sampling programmes and represents one of several highly prospective gold prospects Regal Resources has identified within the Regal SK Project area.

Moving forward

The Mineral Resource estimate and detailed review of the 3D geological model indicates mineralisation at Ngoy is possibly more extensive and complex than had been appreciated at the commencement of the Phase I and Phase II drilling programmes. Before committing to further drilling the Company is conducting a comprehensive evaluation of all results received from exploration work at the Ngoy Project including geophysics, geochemistry, geology mapping and drilling data.

The review will include an assessment of options available to expand the extent of the current resource, such as:

  • Drilling testing north and south along strike, and down dip of the Kadutu Prospect which remains open in all directions.
  • A number of geochemical-geophysical targets within the Kadutu Prospect also remain to be drill tested. These include structures at the southern end of the Kadutu Prospect that have been interpreted from current soil geochemistry and geophysics.
  • Drill testing northwest along strike and down-dip at Nyamikundu which is open in both directions.
  • Targeting for the discovery of further high grade shoots of mineralisation and the continuance of high grade mineralisation at depth.
  • Testing various structural settings.  Primary targets are northwest trending structures which cross cut the main shear zone. Drill results have shown that these intersections are favourable sites for high grade mineralisation such as Nyamikundu.
  • Investigating the possibility of parallel blind mineralised structures within a wider regional shear zone.
  • Targeting the Nyamikundu Prospect and testing this mineralised system south towards Kadutu.

The Matala gold anomaly (3km by 0.4km) also represents a high-order target for testing. The anomaly is located approximately 35km to the west of the Ngoy Gold Project and along strike of the fold and thrust zone that hosts the Namoya (2.2Moz) gold deposit (Banro Corp). Matala can now be access by road through recent road developments in the region which makes exploration work more cost-effective.

The Company is assessing a number of options to realize value from the South Kivu Gold Project.