TIDMGEO
RNS Number : 2838X
Georgian Mining Corporation
23 November 2017
Georgian Mining Corporation / EPIC: GEO / Sector: Natural
Resources
22 November 2017
Georgian Mining Corporation
Operations Update
Georgian Mining Corporation ('GEO' or the 'Company') is pleased
to provide an update on the exploration and mineral resource
development programmes underway across multiple targets within its
860 sq km licence on the Tethyan Belt in Georgia, including the
Kvemo Bolnisi East Project ('KB' or the 'KB Project'). To view the
press release with the illustrative maps and diagrams please use
the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2838X_-2017-11-22.pdf
Kvemo Bolnisi East Project targeting a 50MT+ copper - gold
resource
-- New discovery 150m to the west of the GZ2 Mineral Resource,
now called Gold Zone 3 ('GZ3') indicates scope for significant
growth in tonnage - previously announced diluted intercept of
0.65g/t Au over 143.8m from 117.20m (TGD093) including:
o 1.2m @35g/t Au from 67.0m
o 75.3m@ 0.46g/t Au from 117.2m
o 56.0m @1.03g/t Au from 205.0m
-- Core logging indicates that two additional holes drilled at
GZ3 have intersected the same mineralisation style extending the
strike length in the process - assays underway
-- Geochemical multi element data between GZ2 and GZ3 drill
holes indicate that the two zones may be connected at depth
-- New linear gold in soil anomaly and drill target that may
increase the KB gold Resource highlighted by gold in soil
geochemical surveys to the south of the KB Mineral Resource
o KB has a current JORC Resource of 3.154Mt @ 0.82% Cu &
0.14g/t Au and a gold oxide resource of 2.29Mt @ 0.85g/t Au
-- Updated Mineral Resource on gold and copper based on the
latest round of drilling which focused on the immediate environs
around the GZ2 mineralisation expected from external resource
consultants within weeks
-- Metallurgical test work continues on gold oxide ores from the KB Project
-- Negotiations continue in relation to the Company's proposed
KB gold oxide production and processing agreement and updates will
be provided in due course.
Additional targets offer scope to expand the resource beyond the
50MT exploration target for KB
-- IP geophysical surveys at Tamarisi and Dambludka projects
continue to generate new drill targets
-- Mapping and soil geochemistry work continues at Dambludka, a
base and precious metal project covering a 2km by 1km area in
preparation for a drill programme scheduled to commence early in
the new year
-- Historic gold analyses in adit samples at Dambludka are
recorded at grades as high as 775g/t Au
Georgian Mining Corp Managing Director Greg Kuenzel said,
"Whether drilling or geochemical surveying, the results of our work
at KB continue to be consistent with our geological model: that KB
hosts large scale epithermal gold-copper mineralisation. Our
three-phase strategy to prove up our model is well advanced. Having
already hit our Phase 2 target of 3-5Mt, we expect to increase this
further in the coming weeks with an updated Mineral Resource on
both gold and copper at KB. We continue to identify additional
targets within KB and at other prospects across the licence, which
strengthens our belief that there remains tremendous scope for us
to deliver more than 50Mt of copper-gold resources as we look to
build another significant copper gold operation on the prolific
Tethyan Belt."
Gold Zone 3 Growth
The initial step-out exploration at KB led to the discovery of
Gold Zone 2 ('GZ2'). The recently announced GZ3 discovery resulted
from a further successful step-out to the west of GZ2.
Image 1: Plan showing location of Gold Zone 3 - See PDF
Detailed assessment of the mineralisation in drill core suggests
a different mineralisation style to that found at GZ1 and GZ2 based
on a review of the lithology, grade distribution and elemental
associations.
The style of mineralisation is similar to a nearby Resource
characterised by a gold - zinc association, interpreted to be part
of a carbonate base metal low sulphidation epithermal deposit
model. This new mineralisation style provides scope for the
building of large tonnage. In effect, the KB exploration and
drilling programme is potentially moving from a stage of
incremental growth to one of exponential growth in line with the
documented exploration and development strategy.
Two drill holes have been analysed and reported to date, TGD087
and TGD093 with encouraging results being achieved particularly in
TGD093, where, accepting no limitation on internal waste in line
with the bulk tonnage objective, mineralisation included an
intercept at 117.2m returning a gold grade of 0.64g/t Au over
143.8m.
Two further holes, TGD105 and TGD106 have recently been
completed and the core will be dispatched for analysis. Initial
core logging indicates these holes, drilled to step-out from TGD093
have intersected the same mineralisation style.
Analysis of multi element geochemistry from the analysed holes
at GZ3 with similar data for GZ2 further to the east indicates that
the new mineralisation system extends eastwards over a minimum
strike length of 250m. There is no drilling between these holes at
GZ2 and GZ3 and this represents an obvious target for follow
up.
A new drillhole, KWD003 intersected an epithermal quartz breccia
returning an intercept of 59.5m at 88g/t Ag from 7.5m,
approximately 700m to the southwest of GZ3. Whilst this intercept
is not gold-rich, it is indicative of the continued exponential
growth potential of the epithermal system. The area between these
drill holes has not been previously tested and represents another
obvious drill target.
New Extension to KB Gold Mineralisation
A soil geochemical survey has been successfully completed over
the KB SW target, which forms the southern extension of the KB
Mineral Resource. The survey identified a NE-SW oriented linear
gold in soil anomaly that appears to be part of an arcuate regional
feature that includes both the KB Mineral Resource and a large
linear gold target situated to the immediate west. Again, KB SW
represents an obvious drill target offering scope to further expand
the KB Au oxide Mineral Resource.
Metallurgical Test Work
Further metallurgical test work including additional bottle
rolls and column leach tests are continuing under the supervision
of external metallurgical consultant Wardell Armstrong
International.
Resource Estimation Update
A Mineral Resource estimation update is underway with the
Company's external Resource consultant. The Company expects to
provide shareholders with an update in due course.
Dambludka Soil Survey Defines Larger Target
Two soil geochemical surveys have been successfully completed at
Dambludka. The initial survey was confined to an area that overlies
high-grade historical gold channel sample results from old drives
and adits. Historical gold analyses in the channel samples are
recorded at grades as high as 775g/t Au.
Adit 24 records 11 samples with channel grades exceeding 5g/t Au
over a maximum channel width of 1.2m with peak grades of 16.2 and
14.8g/t Au. Adit 11a reported 5 samples exceeding 100g/t Au with
peak grades of 775g/t Au, 679g/t Au and 249g/t Au over a maximum
channel width of 1m and Adit 11 records 7 samples returning grades
of greater than 70g/t Au over channel widths of 0.5m with peak
grades of 260g/t au, 534g/t Au and 214g/t Au. The accuracy of these
historical results will need to be validated with our own sampling
to verify the grades. The initial overlying soil survey reported
gold grades ranging from 0.38 to 1.01g/t Au. A follow up survey was
completed to test the north, east and west extension of
mineralisation returning typical gold in soil grades of between
0.1ppm Au and 1.ppm Au.
The results supported by the unusually high gold channel sample
analyses are sufficiently anomalous to warrant a drill programme.
An initial 8-hole programme has been planned to test the soil
anomalies and underlying channel sample gold veins.
A 10km(2) area has been identified as being anomalous and a
forestry permit has been applied for in order to support access
road and drill pad construction. Drilling is expected to commence
in Q1 2018.
IP Geophysical Survey Update
IP geophysical surveys have been conducted over a number of
targets within the Licence. The objectives are twofold, firstly to
test for extensions to known mineralisation and secondly to provide
additional data for subsequent interpretation during the latter
part of Q4 to generate additional drill targets for Q1 2018.
Tamarisi Survey
The Tamarisi Project is located to the east of Tsitel Sopeli in
the southern half of the Licence. Exploration was conducted by two
Soviet expeditions in the late 60's and mid-70's and the most
recent work was completed in 1998. The scope of work conducted is
similar to the situation originally found by the Company at Kvemo
Bolnisi and therefore potentially offers an opportunity to find new
mineralisation by employing modern exploration techniques. Historic
copper, lead and zinc analysis of drillholes that extended to 400m
depth returned anomalous intercepts for base metals but failed to
demonstrate any continuity of mineralisation compounded by the
vertical inclination of drillholes. It was also reported that core
recoveries were frequently less than 50 per cent and the report
also comments that areas of mineralisation in the core were washed
out during drilling. In 1998, 14 new holes were drilled and the
report states that "In virtually all cases analysed, gold was found
with grades up to 13.6g/t Au over 10m and to a depth of 350m".
Soviet reports estimated that mineralisation occurred over a
2km(2) area.
Other historic drill intercepts included DDH259 returning 4.2g/t
Au over 10m from 202m, DDH612 returning 7.85g/t Au and 1.95% Cu
over 5m from 384m, DDH614 returning 0.52g/t Au over 21m from 64.5m
and, Trench 01B returning 1.07g/t Au over 11m.
GEO has completed a 3 line IP (4.8km) geophysical survey over
the target area and generated both chargeability and resistivity
anomalies. The Company's external geophysical consultant has been
provided with the raw data for interpretation.
The results of the interpretation and possible additional IP
survey lines will determine what follow up will be required.
Dambludka Survey
A survey at Dambludka is scheduled to commence in the next few
days and will provide supplementary information to the recently
completed soil geochemical survey and ahead of the planned drilling
programme.
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 James Royall, who is a Member of the Australian
Institute of Geoscientists.
James Royall has sufficient experience, relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking, to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves' and as a qualified person as defined in the Note for
Mining and Oil & Gas Companies which form part of the AIM Rules
for Companies. James Royall has reviewed this announcement and
consents to the inclusion in the announcement of the matters based
on his 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
Soltan Tagiev 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
Susie Geliher 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. Georgia has an established mining
code and is a jurisdiction open to direct foreign investment.
GCG 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
(achieved)
-- Phase 3: Long term target - to delineate a resource of 50Mt+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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