TIDMGEO
RNS Number : 6437K
Georgian Mining Corporation
11 July 2017
11 July 2017
Georgian Mining Corporation
Initial Mineral Resource for Gold Zone 2 Target at Kvemo Bolnisi
East
Georgian Mining Corporation ('GEO') is pleased to announce an
initial Mineral Resource estimate (in accordance with the
guidelines of the JORC Code (2012)) for the gold oxide deposit at
Gold Zone 2 in the Kvemo Bolnisi East ('KB') Project with combined
Indicated and Inferred categories of 2.29Mt @ 0.85g/t Au,
containing an optimised In-Pit Mineral Resource of 1.14Mt @ 1.10g/t
Au. The KB project is located in an established copper-gold region
in Georgia along the highly prospective Tethyan Belt and Gold Zone
2 is one of three zones currently being developed at KB which may
form one large epithermal copper-gold system. The initial Gold Zone
2 Resource exceeds the interim target and increases confidence in
GEO's three phase strategy to develop a total resource in excess of
50Mt that exploration activities are now targeting at KB.
Highlights:
-- The Optimised In-Pit Resource of 1.14Mt @ 1.10g/t Au at Gold
Zone 2, is based on the initial 64-hole drill programme (announced
on 6 June 2017) within a global Inferred and Indicated Resource of
2.29Mt @ 0.85g/t Au (Indicated category of 296kt @ 1.31g/t Au and
Inferred category of 1.99Mt @0.78g/t Au)
-- Infill and step-out drilling are underway to increase the
grade and upgrade the resource categories which will be included in
a future mine plan
-- GEO is on course to deliver the Phase 2 target of 3 - 5Mt of
combined copper-gold sulphide and gold oxide mineralisation across
all three zones at KB
-- The scoping study with supporting metallurgical test results
will be presented to our JV partner shortly as the basis for
detailed negotiations over the terms and timetable for mining and
processing of the gold oxide ore
GEO Managing Director Greg Kuenzel said, "Our maiden gold
resource at Gold Zone 2 exceeds our initial target of 750kt to 1Mt
at 1 g/t Au and importantly meets our criteria for processing the
ore by low cost heap leaching. We are now completing the
metallurgical test work needed to finalise the Scoping Study, which
will form the basis for negotiating the production and processing
agreement with our JV partner."
Further information
The initial Gold Zone 2 resource covers an area extending from
surface to the base of the oxides at approximately 40 metres depth
with a footprint of 150 x 150 metres and, as the Resource occurs
from surface, no significant stripping will be required on
commencing production. The KB target total footprint has now been
expanded to 1km by 1.3km, significantly increasing the potential to
further develop and upgrade the initial resource. Our present
programme focuses on step out drilling around the gold oxide ore
block to increase the dimensions of the gold oxide resource. Work
is also underway to upgrade the existing copper JORC resource,
where recent drilling intersected high grade chalcocite and copper
sulphides below the base of the gold oxide at Gold Zone 2. We
expect to announce additional resource upgrades over the coming
months to confirm that GEO is on track to achieve a Phase 2 Mineral
Resource target of 3-5 Mt.
GEO's excavation, detailed geological mapping and channel
sampling cover an extensive area to the north and northeast of the
Gold Zone 2 ore block. Drilling of newly generated targets should
add to the Mineral Resource, as we build towards our 50Mt copper
and gold exploration target, which the Directors expect will enable
KB to become a highly profitable copper-gold mine operation in the
Tethyan Belt.
Mineral Resource Estimate
Mineral Resource
Recent diamond drilling has delineated a constrained In-Pit
optimised JORC Mineral Resource estimate of 1.14 million tonnes @
1.10g/t Au within a global Inferred and Indicated Resource of
2.29Mt @ 0.85g/t Au. GEO will now expand the programme beyond the
initial target tonnage to demonstrate that scope exists for a much
larger bulk tonnage resource.
Table 1: Kvemo Bolnisi Gold Zone 2 Mineral Resource
Unconstrained Mineral Indicated & Inferred JORC (2012)
Resource - Gold Zone 2 ("GZ2") Gold Oxide
Resource Tonnes Grade Grade*
Type (t) (g/t Au) (% Cu)
------------ ---------- ---------- --------
Gold Oxide 2,290,000 0.85 0.07
------------ ---------- ---------- --------
Pit Optimised Mineral Indicated & Inferred JORC (2012)
Mineral Resource - Gold Zone 2 ("GZ2") Gold Oxide
Resource Tonnes Grade Grade*
Type (t) (g/t Au) (% Cu)
------------ ---------- ---------- --------
Gold Oxide 1,782,000 0.97 0.07
------------ ---------- ---------- --------
Inc. 1,140,000 1.10 0.07
------------ ---------- ---------- --------
* Note: To be efficient, the heap leach processing of gold oxide
requires low levels of other metals to be present in ore. The
copper oxide level in the KB gold oxide Mineral Resource at an
average grade of 0.07% Cu is very low which will have a positive
effect on reagent consumption
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Competent Person Statement
The information in this announcement that relates to Exploration
Results, Mineral Resources or Ore Reserves is based on information
compiled by Adam Wheeler, who is a fellow (FIMMM) of the Institute
of Materials, Minerals and Mining and a registered Chartered
Engineer (C. Eng and Eur. Ing) with the Engineering Council (UK)
and reviewed by Mark Owen, BSc, MSc, MCSM, Chartered Geologist, a
member of the European Federation of Geologists and a Fellow of the
Geological Society.
Both Mr Wheeler and Mr Owen have sufficient experience, relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking, to
qualify as Competent Persons as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mark Owen and Adam Wheeler have
reviewed this announcement and consent to the inclusion in the
announcement of the matters based on their information in the form
and context in which it appears.
**ENDS**
For further information please visit www.georgianmining.com or
contact:
Greg Kuenzel Georgian Mining Company Tel: 020 7907
Corporation 9327
Ewan Leggat S. P. Angel Corporate Nomad & Tel: 020 3470
Finance LLP Broker 0470
Damon Heath Shard Capital Partners Joint Broker Tel: 0207
LLP 186 9950
Frank Buhagiar St Brides Partners PR Tel: 020 7236
Ltd 1177
About Georgian Mining Corporation
Georgian Mining Corporation has 50% ownership and operational
control of the Bolnisi Copper and Gold Project in Georgia, situated
on the prolific Tethyan Belt, a well-known geological region and
host to many high-grade copper-gold deposits and producing mines.
The Bolnisi licence covers an area of over 860 sq km and has a
30-year mining licence with two advanced exploration projects;
Kvemo Bolnisi and Tsitsel Sopeli. These projects are nearby
existing mining operations owned by the Company's supportive joint
venture partner. Georgia has an established mining code and is a
jurisdiction open to direct foreign investment.
The Company is developing the project in three phases:
-- Phase 1: H1 2017 target to delineate a minimum of 1-2 Mt to
support initial spare capacity (now achieved and exceeded)
-- Phase 2: 2017 target to delineate a 3-5 Mt resource of
combined copper-gold sulphide and gold oxide mineralisation (on
target)
-- Phase 3: Long term target - to delineate a resource of 50Mt+
Quality Assurance and Quality Control
Drill hole sampling consists of half core ranging from 0.5m to
1.5m in length that are prepared at an onsite preparation lab
operated by the company's partner. Samples were analysed at ALS
Global laboratory in Loughrea, Ireland. Gold concentrations
determined by 50gm Fire assay (Au-AA26) and multi-element data by 4
acid digest ICP (ME-MS61) Over grade samples are analysed using ICP
AES (OG-62). Field duplicates are collected and blanks and CRMs are
routinely inserted to all batches at a suitable frequency.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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