TIDMKGLD
RNS Number : 3644T
Kolar Gold Limited
06 December 2011
Kolar Gold Limited
South Kolar Gold Project - Drilling Update
Kolar Gold Limited ("KGL or the "Company"), the Indian focussed
gold exploration and development company, announces that it has
received promising assay results from the first diamond drilling
programme on the Chigargunta Eastern Lodes in the South Kolar
licence area (GP 13), India. The lodes targeted with this campaign
were the northerly extensions of the Eastern Lodes that have
previously been mined in the historic Chigargunta mine. These
lodes, named the E2, E3 and E4 lodes, are hosted within the felsic
volcanic unit of the Kolar Greenstone Belt known locally as the
Champion Gneiss and are a major target of the exploration programme
currently being carried out by KGL.
Highlights
-- KGL has now drilled 25 holes for a total of 3,545 metres of
the current South Kolar drilling programme.
-- These include 6 drill holes for 872 metres completed in
Chigargunta Eastern Lodes targeting the E2, E3 and E4 lodes and
reported here.
-- Gold mineralisation is confirmed to be the northerly
extensions of the Eastern Lodes mined in the historic Chigargunta
mine.
-- Mineralisation includes narrow, high grade intercepts within
a broad low grade intersection in KCE 02 through the E4 lode.
-- Selected results from the Eastern Lodes include:
o KCE 01 - 0.5m @ 4.90g/t from 41.55m & 1.0m @ 3.36g/t from
43.55m
o KCE 02 - 11.5m @ 1.21g/t from 82.84m incl. 1.5m @ 4.74g/t from
92.84m
o KCE 06 - 2.0m @ 3.04g/t from 14.3m and 3.0m @ 3.1g/t from
28.3m
The drilling programme reported here followed identification of
significant chargeability anomalies from the IP survey completed
earlier in conjunction with surface mapping (as announced on 7th
November 2011). The 6 holes (totalling 872 metres) were
independently verified by the Competent Person, Mr Andrew J Vigar
of Mining Associates Ltd ("MA") and all work has been conducted
under JORC guidelines.
The strike and position of the targeted lodes were found to
correlate well with a significant chargeability anomaly on the
eastern side of the north south trending felsic volcanics, one of
three anomalies identified in our recent IP survey over the
Chigargunta block. The western anomaly lies within the mafic units
and corresponds to the position of the western lodes and the
central anomaly has been found to correlate with the coaxial plane
of an antiformal structure. The drilling also confirms that these
anomalies extend to a depth greater than 90 metres below
surface.
Table 1. Kolar South Project - Chigargunta Eastern Lodes Drill
with Results (to date)
Depth From To Width Au Lode
BHID XCOLLAR YCOLLAR ZCOLLAR (m) AZIMUTH DIP (m) (m) (m) g/t No
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-01 201,573 1,408,667 690 173.55 270 -50 41.55 42.05 0.50 4.90 E3
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-01 43.55 44.55 1.00 3.36 E3
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-02 201,745 1,408,867 734 150.34 270 -50 82.84 94.34 11.50 1.21 E4-A
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-02 100.34 101.34 1.0 1.24 E4-B
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-03 201,683 1,408,249 726 161.34 270 -50 70.34 70.84 0.50 1.10 E4-A
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-03 100.34 100.84 0.50 1.63 E4-B
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-04 201,562 1,408,236 720 145.35 270 -50 104.85 105.85 1.00 2.04 E3
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-05 201,729 1,408,809 730 149.54 270 -50 no significant mineralisation
-------- -------- ---------- -------- ------- -------- ---- ---------------------------------------
KCE-06 201,707 1,408,841 730 91.74 270 -50 14.30 16.30 2.00 3.04 E4-A
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-06 28.30 31.30 3.00 3.10 E4-B
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
KCE-06 51.30 53.30 2.00 1.59* E4-C
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------ -----
* visible gold seen in drill core
From the limited drilling completed to date, promising
mineralisation has been encountered in five of the six holes
currently drilled. The drill holes are shown at
http://www.rns-pdf.londonstockexchange.com/rns/3644T_-2011-12-5.pdf
Drill hole KCE 01 intersected the zone occupied by the E2 and E3
lodes. KCE 02 confirmed a broad zone of mineralisation (18.5
metres) with typical characteristics of the eastern lodes exploited
at the Chigargunta mine. KCE 03 confirmed minor mineralisation on
the E4 lode. KCE 04 intersected both the E3 and E2 lodes with the
samples for the E2 intersection still being processed. KCE 06
targeted the E4 lode and encountered 3 mineralised zones including
a narrow intersection from 51.30 metres containing visible
gold.
RC Drilling and trenching
KGL is also pleased to announce that it has commissioned a
reverse circulation (RC) drill rig and has commenced drilling at
the northern end of the Chigargunta block approximately 300m north
of the Chigargunta NE deposit.
KGL initially plan to drill approximately 4,000m to test the
surface and near surface expressions of the IP anomalies that have
been identified at a number of locations in GP 13. This drilling
programme will commence from the Chigargunta block and move
northwards.
In order to better define the drill targets from the IP
chargeability anomalies, an extensive surface trenching mapping and
sampling programme is currently underway ahead of the RC drilling
campaign. Trenches have been completed so far at the northern end
of the Chigargunta block and in the Peddapartikunta and
Sanganapalle blocks. Three RC holes have been completed at
Chigargunta (results pending) that confirm the geological
continuation of mineralised structures seen in the trenching and
that IP geophysics will continue to bean important exploration tool
in the South Kolar belt.
About Kolar Gold Limited
Kolar Gold Limited is an Indian gold exploration and development
company, listed on the AIM market (KGLD), that has an experienced
international board and strong local partners. KGL has rights to
explore and develop one prospecting licence and 13 further licence
applications in the Kolar Gold Belt, an 80 kilometre long Archaean
Greenstone Belt, in Southern India. The Kolar Gold Belt is one of
the most prospective underdeveloped Archaean Greenstone Belts in
the world and is regarded by Mr Andrew J Vigar of Mining Associates
Limited, the Competent Person, as comparable to the Archaean
Greenstone Belts of South Africa, Canada and Western Australia
which have similar geology, structure and style of mineralisation.
This project area includes 32 known mineralised prospects and
covers 568 square kilometres in the southern states of Andhra
Pradesh, Karnataka and Tamil Nadu. KGL commenced exploration on the
first Prospecting Licence in South Kolar in February 2011. KGL is
also jointly pursuing, with the mine employee unions, the
acquisition and revival of the neighbouring historic Kolar Gold
Fields which has produced 25 million ounces of gold at 15.9 grams
per tonne over 120 years until closure in 2001.
Qualified Persons
The summary review of geology and drilling results was conducted
by Mr Andrew J Vigar who has sufficient experience which is
relevant to the Archaean gold style of mineralisation and deposits
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' (Australia) and is a Qualified Person
as defined in NI43-101 (Canada). He is a Fellow of The Australasian
Institute of Mining and Metallurgy (Melbourne) and a Member of the
Society of Economic Geologists (Denver). Mr Vigar is employed by
Mining Associates Limited of Hong Kong. Mr Vigar conducted a site
visit to the Kolar Gold Projects and adjacent properties from 28
June to 2 July 2010. Mr Vigar does not have any interest (current
or past) in any of the assets covered by this report.
For further information please contact:
Kolar Gold Limited
Nick Spencer +617 3846 0211
Cenkos Securities plc
Nomad and Joint Broker
Beth McKiernan/Ken Fleming 020 7397 8900/0131 220 6939
Ocean Equities Limited
Joint Broker
Will Slack 020 7786 4370
Tavistock Communications
Ed Portman/Lydia Eades 020 7920 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
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