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Project Geology

Introduction

The Ngayu project covers an area of 2,087 square kilometres and is found within the Orientale Province of northeast DRC, some 270 kilometres northeast of Kisangani and 380 kilometres west of Lake Albert on the border with Uganda. The project covers prospective parts of the Ngayu Archaean greenstone belt, which is one of a number of greenstone belts in the north-east Congo Archaean craton and includes the Kilo and Moto greenstone belts. These Archaean greenstone belts are the northwestern extensions of the Lake Victoria greenstone belt terrain which hosts a number of world class gold deposits, including Geita, North Mara and Bulyanhulu that were found and developed during the 1990s.

Loncor's Ngayu project property location

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Loncor Resources Inc. has an option agreement with Rio Tinto Exploration RDC Orientale SPRL for the exclusive gold rights at Ngayu covering 13 PRs ("Permits de Reserches" - exploration permits) totaling 2,087 square kilometres. Initially, Loncor's option agreement had an area of 4,550 square kilometers and covered most of the Ngayu belt but after a regional assessment of the belt, using airborne geophysical and geochemical surveys over a two year period, the area was reduced in February 2012 to 2,087 square kilometers.

Ngayu Project Infrastructure and Legal Tenure Plan

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Exploration commenced at Ngayu in the first quarter of 2010 following construction of the main field camp at Yindi.

A two pronged exploration strategy has been undertaken over the last two years at Ngayu: ground follow up (gridding, soil and auger sampling, pitting, trenching, geological mapping and core drilling) of known prospects within the Ngayu PRs such as Makapela, Yindi and Itali; and regional reconnaissance geochemical (Bulk Leach Extractable Gold, "BLEG") and airborne geophysical and remote sensing techniques in corporation with Newmont under a Technical Services Agreement to target additional new prospects in this densely forest terrain.

The Ngayu Greenstone Belt has a length of approximately 80 kilometres and a width of 40 kilometres and bears geological similarities to the Geita Archaean greenstone belt of Tanzania. In terms of size, the Ngayu belt is approximately three to four times the size of Geita, where the gold deposits which currently total 17 million ounces are found within banded ironstone formations ("BIF") or in close proximity to the BIF in other host lithologies. Similarly, the Ngayu project has well developed BIFs with a total potential prospective strike length of 130 km.

Ngayu Project: Archean Greenstone Belt geology with similarities to the prolific Geita Greenstone Belt in Tanzania (black line is original Loncor property boundary, prior to February 2012)

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A number of gold occurrences are found within the Ngayu greenstone belt, including the Company's current most advanced prospect, Makapela (more information on Makapela is available in the Map section of this page, below), Yindi and Itali. Yindi and the Imva Fold area have been the sites of historical alluvial and hardrock gold production during colonial times and Kilo Gold's Adumbi deposit is to the east of the Ngayu belt.

The following prospects, with details below, are located within Loncor's Ngayu Project area:
Makapela Prospect
Yindi Prospect
Itali Propsect

Regional Geophysical and Geochemical Assessment

All airborne geophysical data have been analyzed in detail by specialist Newmont geophysicists in Perth, Australia as part of the Technical Services Agreement between Loncor and Newmont. The objectives of the interpretation were to prepare a map showing the distribution and structural relationships of the different lithologies in the project area, and to identify and prioritize target areas for gold mineralization, in part using the Geita geological model.

Ngayu Project Detailed Geophysical Interpretation by Newmont

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This interpretation resulted in four priority areas as being lithologically and structurally favourable for gold mineralization, as follows:

Regional Geochemical Stream Sediment (BLEG) Sampling

BLEG (Bulk Leach Extractable Gold) sampling is a stream sediment sampling technique that provides a relatively fast and reliable way of assessing large tracts of land, and has been particularly effective in defining targets within the Ngayu area. The sampling methodology and analytical techniques are proprietary to Newmont.

Following successful orientation surveys in the Yindi and Makapela areas in 2010, three phases of BLEG sampling were carried out:

Target Generation based on Airborne Geophysical and Regional BLEG Surveys

Six high priority (H1 -- H6), seven medium priority (M1 -- M7) and four lower priority targets (L1 -- L4) have been defined based on the BLEG anomalies and the geophysical interpretation. The rationale for selecting these targets is as follows:
Prioritized Regional BLEG Results

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These priority target areas are now being followed up on the ground by gridding, soil and auger sampling to define drill targets.