Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Canadian gold exploration company Loncor Resources (TSX: LN) has announced a 44% increase in mineral resources at its Adumbi deposit, part of the Imbo project located within the Ngayu greenstone gold belt of the Democratic Republic of Congo.
Compared to the inferred mineral resource of 2.19 million ounces of gold (28.97 million tonnes grading 2.35 g/t Au) outlined in April 2020, further drilling has now increased the Adumbi inferred mineral resource by 44% to 3.15 million ounces of gold (41.316 million tonnes grading 2.37 g/t Au), constrained within an open-pit shell.
As a result of the increased mineral resource at Adumbi, the total inferred mineral resource of the Imbo project, which contains two other deposits, (Kitenge and Manzako), is now 3.466 million ounces of gold (42.996 million tonnes grading 2.51 g/t Au).
A total of 84.68% of this inferred mineral resource is attributable to Loncor via the company’s interest in the Imbo project.
“This major increase in mineral resources within a $1,500 pit shell to 3.15 million ounces of gold is an important milestone in demonstrating the potential economic viability of the Adumbi deposit. Sensitivities show this mineral resource within the pit shell is robust and not markedly sensitive to changes in the gold price. Gold mineralization is open at depth below the pit shell where drilling is continuing with the objective of outlining underground resources,” Loncor president Peter Cowley said in a news release.
“Drilling at Adumbi also demonstrates that grade is increasing at depth, which bodes well for a significant underground resource to be outlined,” he added.
Going forward, once drilling has been completed in Q2 2021, the company intends to embark on a preliminary economic assessment (PEA) to determine the potential economic viability of Adumbi.
