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Positive Results from Re-sampling and Verification Work in Georgia
Noricum Gold Limited, the European focused base and precious metals resource development company, has announced that resource conversion and development work currently underway at Tsitel Sopeli and Kvemo Bolnisi, two primary targets at the Company’s 861 km2 Gold & Copper project in the Republic of Georgia, is progressing positively.
This update follows a detailed site visit by resource consultant Mark Owen who has begun to validate the resource verification work conducted to date and defined ongoing activities to convert the existing non-JORC Soviet Resources to JORC standards. The site visit included a tour of the Madneuli processing plant and heap leach operation where toll treatment offers a potential fast track to production. The Project has combined, drill defined, non-JORC C1, C2 & P1 Soviet Resources of 980,000 tonnes of contained copper; 6.6 million ounces of gold; and 22 million ounces of silver.
Highlights
· Focus of work remains on fast tracking low cost production at both Tsitel Sopeli and Kvemo Bolnisi due to near surface mineralisation at these targets
· High degree of confidence in the precision and accuracy of historic assay data – results from initial resource verification work on historic diamond drill core and reverse circulation (‘RC’) pulps show a high level of correlation
· New batch of duplicates and splits currently being prepared for submission and analysis to strengthen this confidence further
· Geophysics consultants, Southern Geoscience, recently on site and preparing for new Induced Polarisation, (“IP”) geophysics programme
· New trenching campaign focussing on surface mineralisation commencing shortly at Tsitel Sopeli as a pre-cursor to RC drilling programme
· Work being undertaken at Tsitel Sopeli continues to focus on open pit targets
Noricum CEO Greg Kuenzel said, “The resources at our Project in Georgia are extensive as is the historic data available so I am pleased to report that the receipt of our first batch of verification samples from historic drilling undertaken at Tsitel Sopeli increases the already high level of confidence placed on the precision and accuracy of this historic data. A second batch of samples from Kvemo Bolnisi is currently being prepared and will be submitted for assay shortly, providing us with further confidence and news flow going forward.
“Resource verification and expansion is a critical workstream towards developing our starter pits at both the Tsitel Sopeli and Kvemo Bolnisi deposits towards production to deliver cash flow. A trenching programme will commence shortly at Tsitel Sopeli, focusing on the at surface gold and copper mineralisation and we will also be commencing a detailed geophysics survey at the same target, targeting existing anomalies with a more detailed IP and magnetics survey including extensions north-east and south-east of near surface mineralisation. Similar work is ongoing at Kvemo Bolnisi. This is an exciting time in our development and we are pleased to be working with experts who share in our belief that Bolnisi presents both near and long term mining opportunities due to its size and proximity to infrastructure.”
Resource Verification
As part of the resource verification work being undertaken to convert the Soviet resource to JORC, historic diamond drill core and RC pulps will be resampled and assayed. A high level of correlation between the historic assays and the new assays will allow the Company and its resource consultant to place a high level of reliance on these historic results and as a result, this will greatly speed up the process of verification and conversion.
A first batch of 105 samples including resampled core and pulps from Tsitel Sopeli, certified standard material and blank standard material was recently submitted to ALS Minerals in Ireland as a check to historical drilling and sampling results completed by Noricum’s local partner Caucasian Mining Group (‘CMG’). The results received from ALS only show very minor variation as is common with gold and as such verify the historical results achieved by CMG in its comprehensive exploration efforts. This is a significant milestone in the Company’s resource development activities.
A second batch of samples from Kvemo Bolnisi are currently being prepared for re-assay and verification.
Mark Owen, the Company’s Resource Consultant, recently completed a site visit which included a broad overview of the geology of the Bolnisi region and more specifically on areas comprising near surface resources at Tsitel Sopeli and Kvemo Bolnisi. Mr. Owen also spent significant time with both the Company’s on site personnel as well as CMG personnel reviewing sampling procedures and visiting CMG’s on site laboratory facilities as well as the Madneuli copper & gold mine and processing plant facilities. A detailed review was undertaken of the Company’s sample preparation methodology to ensure compliance with standards required for the resource verification.
