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Loncor defines follow-up targets at Ngayu, shares up 16%

Last updated: 11:07 12 Dec 2011 EST, First published: 12:07 12 Dec 2011 EST

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Loncor Resources (CVE:LN)(AMEX:LON) Monday announced the results of the regional assessment of its Ngayu Gold project, in north eastern Democratic Republic of the Congo (DRC).

Results from the survey program were "positive and encouraging", Loncor said.

Six high priority targets, together with seven medium priority targets, have been delineated for follow up.

Shares surged 16 percent to $1.50 Monday afternoon.

Loncor chief executive, Peter Cowley, said: "We are very pleased that, at this early stage in our exploration program, we have identified key target areas and are in a position to move into more detailed examination.

"By utilising the technical services agreement with Newmont and their proprietary exploration techniques, we have been able to rapidly assess the belt and have defined a number of priority targets which will be our future focus of attention next year together with our ongoing drilling program at Makapela."

The targets were outlined by assessing the results of two regional Bulk Leach Extractable Gold (BLEG) surveys conducted during March and September 2011, as part of the technical services agreement between Loncor and Newmont Mining (TSE:NMC)(NYSE:NEM).

As part of this evaluation program, the BLEG results were assessed in conjunction with a detailed geophysical magnetic interpretation of the Ngayu Greenstone belt, also undertaken by senior Newmont geophysicists to define the target areas.

The initial BLEG survey commenced in March 2011, and comprised of 418 stream sediment samples, at an average sample density of one sample per 10 square kilometres.

A second round of infill BLEG sampling was undertaken in September, consisting of 185 samples at an average sample density of one sample per four square kilometres, Loncor said.

Samples were sent to Newmont's proprietary geochemical laboratory in Perth, Australia for preparation and analysis.

The BLEG method has the advantage of being able to rapidly and reliably assess large tracts of ground - ideal for the Ngayu project with its 4,550 square kilometres of forested terrain.

Loncor is a gold exploration company focused on two key projects in the Democratic Republic of the Congo - the Ngayu and North Kivu projects. The company has exclusive gold rights to an area covering 4,550 square kilometres that covers most of the Ngayu Archaean greenstone belt in the Orientale province of the northeast portion of the DRC.

It also owns or controls 54 exploration permits in North Kivu province, covering 17,760 square kilometres, located west of the city of Butembo. Both areas have historic gold production.

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on 12/15/2021