TIDMKGLD
RNS Number : 1126N
Kolar Gold Limited
21 October 2016
Kolar Gold Limited
("Kolar Gold", "Kolar" or the "Company")
Indian Resource Size Increase
Kolar Gold Limited (LON: KGLD), the AIM-quoted gold exploration
and mine development company, is pleased to provide an update on
its Indian interests.
Jonnagiri
As previously announced, Geomysore Services (India) Private
Limited ("Geomysore"), in which Kolar owns 22.31% equity as at
today's date, is in the process of undertaking an Economic
Feasibility Study ("EFS") in respect of building a producing open
pit gold mine from the East Block at Jonnagiri, for which Geomysore
has been granted a 30-year mining licence to mine 365,000 tonnes of
gold ore per year.
Whilst drilling and mine planning for the EFS continues at
Jonnagiri, Geomysore commissioned Golder Associates Pty Limited
("Golders") to review the drilling programme and estimate the JORC
compliant resource at Jonnagiri. Following completion of this
review based on the data available as at 30 June 2016, Golders has
estimated a JORC compliant resource (the "Resource") of 351,000
ounces (Indicated and Inferred) in aggregate at the East and West
(formerly 'Temple Deep') blocks (234,000 ounces and 117,000 ounces
respectively), a significant increase from the approximate 150,000
ounces identified at the East Block and announced on 30 March
2016.
Kolar Gold CEO, Cameron Parry, commented: "We are delighted to
report that the JORC compliant resource at Jonnagiri has materially
increased since earlier this year thanks to the significant
improvement at the East block and through the addition of the
underground prospect in the West block.
"The EFS is scheduled to be completed before the end of the
first quarter next year. Kolar intends to provide an interim update
on the EFS drilling results at Jonnagiri over the next couple of
months. Upon completion of the EFS drilling programme and pit
optimisation study, the size of the JORC resource will be updated
further.
"Kolar Gold continues to progress its threefold strategy; build
value in Kolar's Indian gold interests, establish fintech
applications that can leverage off Kolar's gold focus in India,
and, as recently secured in Finland, develop high grade gold assets
in a second jurisdiction."
Resource Update Details
The JORC Resource at Jonnagiri has been estimated using a 0.5
g/t cut off for potential open pit activities and a 2 g/t cut off
for potential underground activities at the West block. Golders
also provided Geomysore with the West Block model to assess the
underground viability at lower cut off grades in the context of the
Indian cost structure. The summary of the resource estimate is as
follows:
Gross (1) Net attributable
(1) (2)
---------------- ----------- -------- -------------------------- -------------------------
Deposit Class Cut-off Tonnes Au Ounces Tonnes Au Ounces
(g/t (Kt) (g/t) (Kt) (g/t)
Au)
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
East Block Indicated 0.5 1,800 1.48 85,000 402 1.48 18,964
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Inferred 0.5 3,700 1.26 148,000 825 1.26 33,019
---------------------------- -------- ------- ------- -------- ------- ------- -------
Sub-total 0.5 5,500 1.33 234,000 1,227 1.33 51,983
---------------------------- -------- ------- ------- -------- ------- ------- -------
West Block
(Temple)
- Open
Pit Indicated 0.5 500 1.05 18,000 112 1.05 4,016
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Inferred 0.5 300 1.13 9,000 67 1.13 2,008
---------------------------- -------- ------- ------- -------- ------- ------- -------
Sub-total 0.5 800 1.08 27,000 179 1.08 6,024
---------------------------- -------- ------- ------- -------- ------- ------- -------
Jonnagiri
Total
- Open
Pit Indicated 0.5 2,300 1.38 103,000 513 1.38 22,979
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Inferred 0.5 3,900 1.25 158,000 870 1.25 35,250
---------------------------- -------- ------- ------- -------- ------- ------- -------
Total 0.5 6,200 1.30 261,000 1,383 1.30 58,229
---------------------------- -------- ------- ------- -------- ------- ------- -------
West Block
- Underground Inferred 2.0 800 3.52 90,000 178 3.52 20,079
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
Jonnagiri
Total
- Combined Total - 7,000 1.55 351,000 1,561 1.55 78,308
---------------- ----------- -------- ------- ------- -------- ------- ------- -------
(1) Columns may not total exactly due to rounding
(2) The Net Attributable resource is for illustrative purposes
only and calculated by reference to Kolar Gold's equity interest in
Geomysore, in compliance with the Note for Mining and Oil and Gas
Companies 2009.
The information in this statement which relates Mineral Resource
estimation and classification of Mineral Resources is based on
information compiled by Mr Andrew Weeks who is a full-time employee
of Golder Associates Pty Ltd, and a Fellow of the Australasian
Institute of Mining and Metallurgy. Mr Weeks has sufficient
relevant experience to the style of mineralisation and type of
deposit under consideration and to the activity for which he is
undertaking to qualify as a Competent Person as defined in the JORC
Code (2012 Edition). Mr Weeks consents to the publishing of Mineral
Resources in the form and context in which it appears.
For further information, please visit www.kolar-gold.com or
contact:
Kolar Gold Limited Tel: +44 (0) 207 397 2880
Cameron Parry (Chief Executive Officer)
Luke Cairns (Executive Director)
WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 113 394 6600
Tim Feather
Ed Allsopp
Vicarage Capital Limited (Broker) Tel: +44 (0) 203 651 2911
Rupert Williams / Jeremy Woodgate
Tavistock (Financial PR) Tel: +44 (0) 207 920 3150
Emily Fenton
GLOSSARY
"g/t" grammes per tonne
"Indicated" an 'Indicated Mineral Resource'
is that part of a mineral resource
for which quantity, grade or
quality, densities, shape and
physical characteristics, can
be estimated with a level of
confidence sufficient to allow
the appropriate application
of technical and economic parameters,
to support mine planning and
evaluation of the economic viability
of the deposit. The estimate
is based on detailed and reliable
exploration and testing information
gathered through appropriate
techniques from locations such
as outcrops, trenches, pits,
workings and drill holes that
are spaced closely enough for
geological and grade continuity
to be reasonably assumed
"Inferred" an 'Inferred Mineral Resource'
is that the part of a mineral
resource for which tonnage,
grade and mineral content can
be estimated with a low level
of confidence. It is inferred
from geological evidence and
assumed but not verified geological
or grade continuity. It is based
on information gathered through
appropriate techniques from
locations such as outcrops,
trenches, pits, workings and
drill holes which may be of
limited or uncertain quality
and reliability.
"JORC" the Australasian Joint Ore Reserves
Committee Code
"kT" thousands of tonnes
"resource" the calculated amount of material
in a mineral deposit, based
on limited drill information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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