TIDMGEO
RNS Number : 3596V
Georgian Mining Corporation
30 January 2017
30 January 2017
Georgian Mining Corporation Announces Initial Mineral Resources
for the
Kvemo Bolnisi Copper Gold Project in Georgia
Georgian Mining Corporation ('GMC') is pleased to announce
initial JORC-compliant Mineral Resource estimates for both the
copper-gold sulphide and gold oxide deposits at the Kvemo Bolnisi
East ('KB') Project based upon initial drill results from the
current drill programme. Further drill results and Mineral Resource
estimate updates will be released to the market over the coming
weeks.
Highlights
-- Initial optimised in-pit mineable Mineral Resource estimate
of 702,000 tonnes at 0.99% copper ('Cu') and 0.17g/t gold ('Au')
has been estimated as part of a larger in-situ copper-gold Inferred
Mineral Resource of 947,000 tonnes at 0.94% copper Cu and 0.15 g/t
Au
-- Initial in-situ combined gold oxide Indicated and Inferred
Mineral Resource of 204,000 tonnes at an average grade of 0.83g/t
Au
-- Significant opportunities exist to substantially expand these
initial Mineral Resources as an additional 7,500m of drilling is
completed in H1 2017
-- GMC intends to process both copper-gold sulphide and gold
oxide types of mineralisation at facilities owned by GMC's JV
Partner
o Copper-gold sulphide: JV Partner's Madneuli flotation plant,
located only 7 km from KB
o Gold oxide: JV Partner's nearby heap leach plants could accept
all output of gold oxide mineralisation; GMC is undertaking further
work to expand the gold oxide resource
GMC Managing Director Greg Kuenzel said, "We are successfully
implementing our strategy to develop mineral resources at KB
suitable for processing at the neighbouring Madneuli plants to
generate positive and sustainable cash flow. This cash flow will
allow us to fund future exploration and development to uncover the
full mineral potential of KB and our entire Bolnisi JV property
while minimising shareholder dilution. We look forward to providing
further updates as our exploration and resource development
programme progresses over the coming months."
Background
The Company's near-term focus remains the KB Project which
became GMC's priority after reviewing historic exploration data and
taking into account the results from initial drill-testing which
led to the recent discovery hole KED004 which returned a grade of
2.57% Cu and 0.23g/t Au over 27.0 metres.
Exploration and Development Programme
GMC intends to develop a minimum JORC-compliant mineral resource
of 3-5 Mt copper-gold sulphides at KB, after generating a mineable
mineral resource of 1-2Mt at 1% Cu to support the first 12 to 24
months of production. On-going drilling is expected to increase the
initial KB mineral resource announced herein, with the anticipated
benefit that future exploration funding can be met from cash flow
once production commences.
Exploration at KB has identified and defined several new drill
targets based upon a combination of historic data and the results
of GMC's more recent exploration consisting of soil geochemical
sampling, detailed mapping, trenching and channel sampling, IP and
ground magnetic geophysical surveys and drilling. These
near-surface targets are all clustered within the footprint of the
KB Project and are currently considered to be part of one larger
centre of copper-gold mineralisation. The exploration programme has
been designed to first test and develop each target into an initial
discrete shallow resource and then to test for a joining of these
individual shallow resources into one significantly larger
mineralised resource that can potentially be exploited in one
larger open pit.
The strategic objectives of this staged exploration approach are
to first develop an initial near-surface 1-2 Mt mineable resource
to allow for near-term production cash flow, then expand this
mineable resource to 3-5 Mt to lengthen mine life and cash flow,
and then to test the full extent of this mineralised system at
depth and away from its centre. The full resource potential at KB
is considered to be similar to the neighbouring Madneuli mine which
has produced over 80 Mt of copper-gold and polymetallic ores.
Mineral Resource Estimates
Two separate mineral resources have been generated to date; a
copper-gold sulphide mineral resource and a gold oxide mineral
resource; refer to Table 1 below.
An in-situ copper-gold Inferred Mineral Resource of 947,000
tonnes at an average grade of 0.93% Cu and 0.15g/t Au has been
estimated, which includes an optimised in-pit mineable Mineral
Resource estimate of 702,000 tonnes at 0.99% Cu and 0.17g/t Au.
This pit-optimised copper-gold estimate meets the guidance provided
by the JV Partner and is expected to increase soon, pending the
receipt of assay results from holes drilled during late December
2016 and early January 2017.
The initial gold oxide resource, comprised of in-situ combined
Indicated and Inferred Mineral Resources of 204,000 tonnes at an
average grade of 0.83g/t Au is very encouraging. As additional gold
oxide mineralization at KB is discovered and delineated, it is
expected that an average resource grade of 1g/t Au or greater will
be achieved to meet the guidance given for processing in either of
the JV Partner's gold heap leach processing facilities.
The Mineral Resource estimates only use data generated from
drilling completed prior to mid-December 2016. On-going results
from additional diamond drill holes in the current programme will
generate further Mineral Resource estimate updates as additional
assay results are received from the independent laboratory.
Preliminary in-house metallurgical test work that commenced in
Q4 2016 has returned encouraging results indicating that the KB
copper-gold sulphide feedstock would beneficially supplement
similar ore feed at the JV Partner's current operations; there is
no obvious evidence of deleterious elements that could negatively
impact processing costs or metal recoveries. Detailed test work is
soon to be commissioned based upon drill core samples from the
current KB drill programme; results of this test work will be used
to optimise cash flow modelling.
The resource estimation work has been undertaken by an
independent external Mineral Resource estimation specialist and the
process has been overseen by a second independent geological
consultant.
Further information concerning the in-situ Mineral Resource
estimate and pit optimisation summary are set out in the tables
below.
Indicated Inferred Indicated
& Inferred
----------------------------------- --------------- ------------------- ----------------
Category Cut-Off Zone Tonnes Cu Tonnes Cu Tonnes Cu
Au Au Au
(Kt) (% ) (Kt) (% ) (Kt) (%
(g/t) (g/t) ) (g/t)
--------- ---------- ------------ --------------- ------------------- ------------
Cu Zones 0.3% Cu Cu 799 0.94 0.17 799 0.94
0.17
--------- ---------- ------------ --------------- ------------------- ------------
Au Zones 0.3g/t Au SW Area 152 0.08 0.46 152 0.08
0.46
Central 23 0.14 2.16 29 0.15 1.72 29 0.15
1.72
--------- ---------- ------------ --------------- ------------------- ------------
23 0.14 2.16 1,128 0.80 1,151 0.78
0.23 0.27
---------- ----------------- ----------------- ------------
Table 1: In-Situ Copper and Gold Tonnage and Grade Estimate
Area Cut-Off Zone Mill - Heap Leach-Inferred Total Ore
Inferred
--------- ---------- ------- ------------- -------------------- ------------
Tonnes Tonnes Tonnes
Cu Au Cu Au Cu Au
(Kt) (Kt) (Kt) (%
(% ) (g/t) (% ) (g/t) ) (g/t)
SW area 0.42% Cu 702 0.99
Cu 0.17
0.27g/t AuOx 154 0.08
Au 0.46
--------- ---------- ------- ------------- -------------------- ------------
702 0.99 154 0.08 856 0.82
0.17 0.46 0.22
--------- ---------- ------- ------------- -------------------- ------------
Table 2: Pit Optimisation Summary
Technical Glossary
"Au" the chemical symbol for the
element gold
-------------------- ------------------------------------------
"Cu" the chemical symbol for copper
-------------------- ------------------------------------------
"g/t" grams per tonne
-------------------- ------------------------------------------
"Indicated mineral a part of a Mineral Resource
resource" for which tonnage, densities,
shape, physical characteristics,
grade and mineral content can
be estimated with a reasonable
level of confidence. It is
based on exploration, sampling
and testing information gathered
through appropriate techniques
from locations such as outcrops,
trenches, pits, workings and
drill holes. The locations
are too widely or inappropriately
spaced to confirm geological
and/or grade continuity but
are spaced closely enough for
continuity to be assumed
-------------------- ------------------------------------------
"Inferred mineral a part of a Mineral Resource
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 and/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 limited
or of uncertain quality and
reliability.
-------------------- ------------------------------------------
"JORC Code" the code for reporting of the
Australasian Joint Ore Reserves
Committee, which is sponsored
by the Australian mining industry
and its professional organisations.
The code is widely accepted
as a standard for professional
reporting purposes for reporting
of mineral resources and ore
reserves.
-------------------- ------------------------------------------
"m" metre, a unit of length as
per the International System
of Units.
-------------------- ------------------------------------------
"Mineral Resource" a concentration or occurrence
of material of intrinsic economic
interest in or on the Earth's
crust in such form, quality
and quantity that there are
reasonable prospects for eventual
economic extraction. The location,
quantity, grade, geological
characteristics and continuity
of a Mineral Resource are known,
estimated or interpreted from
specific geological evidence
and knowledge. Mineral Resources
are sub-divided, in order of
increasing geological confidence,
into Inferred, Indicated and
Measured categories.
-------------------- ------------------------------------------
"Mineralisation" the process or processes by
which a mineral is introduced
into a rock, resulting in a
valuable or potentially valuable
deposit. It is a general term,
incorporating various types;
e.g., fissure filling, impregnation,
and replacement.
-------------------- ------------------------------------------
"Sulphide" a compound of sulphur and some
other element
-------------------- ------------------------------------------
"Gold oxides" Near surface deposit of porous
gold-enriched rocks typically
containing abundant quartz
and Fe-limonites, commonly
formed by the meteoric weathering
of gold-bearing sulphide mineralisation.
-------------------- ------------------------------------------
Review by Competent Persons
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.
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.
**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
Laura Harrison S. P. Angel Corporate Nomad & Tel: 020 3470
Finance LLP Broker 0470
Damon Heath Shard Capital Partners Joint Broker Tel: 0207
LLP 186 9950
Elisabeth St Brides Partners PR Tel: 020 7236
Cowell 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 over 860 sq km has a 30 year mining licence
with two advanced exploration projects; Kvemo Bolnisi East and
Tsitsel Sopeli. Georgia has an established mining code and is a
jurisdiction open to direct foreign investment.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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