The “Somituri Project” is our flagship project comprising, some eight separate Permis d’Exploitation (PE’s) or Exploitation Licenses covering an area of 606 km2.
The Exploitation Licences which are valid from February 23, 2009 to February 22, 2039, were granted to Somituri SPRL and transferred to KGL-Somituri SPRL, a company incorporated under the laws of the DRC.
On one of the eight licences, namely the Imbo Licence, we have delineated the 1.87 Moz NI 43-101 inferred gold Resource estimate for the Adumbi Prospect and our strategy now is to grow this resource along strike, at depth and incorporate a number of other highly prospective targets into a multi-pit operating mine of regional significance. Whilst the Imbo Licence covers an area of 122 km2, all current targets fall within a five km radius of one another.
Our longer term strategy for the Somituri Project is to develop one or more operating mines on the other seven properties for which we have exploitation rights for.
The ownership of KGL-Somituri SPRL is as detailed below:
- Kilo Goldmines Ltd, 71.25%
- Somituri SPRL, 23.75%
- the State 5%
KGL has agreed to finance all activities of KGL-Somituri SPRL until the filing of a bankable feasibility study, by the way of loans which bear interest at a rate of 5%. Within thirty days of the receipt of a bankable feasibility study, the minority partners may collectively elect to exchange their equity participation for either a 2% net smelter royalty (NSR), or a 1% net smelter royalty plus an amount equal to EUR 2/oz of proven mineral reserves.
Rand Gold Resources (current owners of Moto Goldmines Ltd) have the right to buy back a 10% interest for USD 5 M, provided that the feasibility study concludes to a minimum of 2 Moz.
The state retains a free carried interest in the project.
The Imbo Licence incorporates a number of historic Belgian mines, whose production between 1920 and 1959, amounted to some 0.3 Moz of gold.
|Historic Gold Production from PE9691 (Royal Museum for Central Africa, Tervuren, Belgium)|
|Mine||Au production Moz and date|
|Kitenge – Maipinji (primary gold)||2039 kg or 0.066 Moz (1938 to 1955)|
|Kitenge – Maipinji (alluvial gold)||400 kg or 0.0129 Moz (1938 to 1955)|
|Bagbaie – Adumbi (primary gold)||4400 kg or 0.141 Moz (1952 to 1959)|
|M’Boro – Amuango (alluvial)||2180 kg or 0.070 Moz (1927 to 1951)|