TIDMGEO
RNS Number : 0559D
Georgian Mining Corporation
24 April 2017
24 April 2017
Georgian Mining Corporation
Significant resource upgrade for Kvemo Bolnisi East
Georgian Mining Corporation ('GEO' or the 'Company') is pleased
to announce that an upgraded Mineral Resource Estimate for the
Kvemo Bolnisi East ("KB") Copper Zone ('Copper Zone 1') has
increased the total tonnage of in-situ copper metal by 92% in
comparison to the initial estimate announced on 30 January 2017. To
view the press release with the illustrative diagrams please use
the following link:
http://www.rns-pdf.londonstockexchange.com/rns/0559D_-2017-4-23.pdf
Highlights
-- JORC optimised in-pit 1.2 million tonnes @ 1.03% Cu at a 0.4%
Cu cut off triggers the commencement of detailed discussions with
the Company's JV partner regarding the delivery of an initial 1Mt @
1% Cu for toll treatment
-- Total JORC Mineral Resource estimate of 2.22 million tonnes @
0.8% Cu and 0.1 g/t Au at a 0.3% Cu cut-off
-- GEO is also developing an adjacent mineable gold oxide
resource ('Gold Zone 2') with the drilling progressing well
-- New epithermal ore geology model provides exceptional
exploration opportunities that previous explorers had not
considered - has the potential to deliver both bulk tonnage and
high grade zones
-- Future resource expansion programme aims to develop a 50
million tonne resource - further drilling is being planned and
target development work is underway on a further 14 advanced
brownfield exploration sites within the tenure
GEO Managing Director Greg Kuenzel said, "We are extremely
pleased to have met the requirements of our JV partner to achieve
early production. Resource drilling to date validates the Board's
confidence in its exploration programme and confirms that
copper-gold sulphide and gold oxide mineralisation extends well
beyond the limits of the original discovery programme. The recent
identification of KB's low sulphidation epithermal setting
significantly expands our opportunity to explore both bulk tonnage
and also high grade gold and copper-gold targets. We have retained
Greg Corbett, an internationally renowned specialist on epithermal
mineral occurrences, to advise on how best to exploit the
significant new opportunities now presented. We are also in the
process of establishing an initial gold resource and hope to be in
a position to announce this shortly. We believe that this will
present us with a similar opportunity to the copper resource for
delivering near term, proof of concept production."
Further Information
In terms of the project's development, the Company benefits from
its access to processing plants with excess capacity at nearby
mines owned by its JV Partner. This offers a short lead time to low
opex production which can be achieved with modest capital
expenditure. This will benefit the Company by providing the cash
flow to help fund future exploration and, most importantly, a proof
of concept operation.
GEO is undertaking both copper-gold sulphide and gold oxide
mineralisation drill programmes within the KB project area with
extraction expected to be from the same open pit or series of
satellite pits sharing a common infrastructure. The updated JORC
compliant Mineral Resource Estimate for the KB East Copper Zone
represents only a small part of a potentially much larger deposit.
Recent exploration suggests that the region is similar in terms of
geology and probable ore genesis to the large copper-gold breccia
pipe or pipes at the nearby Madneuli mine where in excess of 50Mt
has been mined to date.
The Company is undertaking a phased approach towards achieving
this target:
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+
In addition to Copper Zone 1, two gold oxide zones are currently
being progressed to provide an initial gold oxide resource for near
term production and delivery to the JV partner's neighbouring gold
oxide leach plants. This gold oxide resource will be issued on
completion of the current drill programme. Notably the gold oxides
are located above the level of copper-gold sulphides and can be
exploited as part of the necessary stripping to mine the
copper-gold sulphides.
Now that the Phase 1 target to develop a 1Mt copper sulphide
Resource grading 1% Cu has been achieved and exceeded, the Company
will progress its Phase 2 objective of growing the initial Resource
to 3 - 5Mt of combined copper-gold sulphide and gold oxide
mineralisation as further potential feedstock to its JV partner's
operations through a toll treatment arrangement.
Once Phase 2 is complete, and mining of this ore has commenced,
the Company will continue exploration to achieve Phase 3 by fully
developing the KB breccia pipe with a Madneuli-size target
resource. In tandem the Company will ramp up exploration on other
priority targets already defined within the JV Licence.
This longer term vision is supported by the fact that recent
drilling has established that the Bolnisi district is a classic low
sulphidation epithermal gold camp, dispelling the previous
understanding that the area is a VMS ( volcanogenic massive
sulphide) camp comparable to the Eastern Pontide Belt of
neighbouring Turkey. This fits well with the plethora of epithermal
Cu-Au deposits found within the highly productive Tethyan Cu-Au
Belt which extends into the southern half of Georgia. This offers
scope for the occurrence of several styles of mineralisation across
a greater vertical extent of volcanic stratigraphy. These range
from bulk tonnage copper-gold breccias, where one large or multiple
breccia pipes exist in close proximity (this appears to be the case
at Madneuli and KB East), to high-grade "bonanza type" epithermal
quartz-gold vein mineralisation. Our new epithermal ore geology
model provides exceptional exploration opportunities not considered
by previous explorers. GEO has now engaged renowned geological
consultant Greg Corbett to confirm GEO's new epithermal ore geology
model. Mr Corbett made a recent site visit to the Bolnisi JV
Project and the Madneuli mine and will provide future guidance to
fully exploit this new model through more effective exploration
targeting.
Mineral Resource Estimate & Exploration Upside
Mineral Resource
Recent diamond drilling has delineated a JORC Mineral Resource
estimate of 2.22 million tonnes @ 0.80% Cu and 0.10g/t Au at a
0.30% Cu cut-off in line with the Company's strategy to achieve
Phase 1. 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 Copper Zone Mineral Resource Update as of
end March 2017
Inferred Resources
---------- ------- -----------------------
Cut-Off AZONE Tonnes Cu Au
Kt % g/t
---------- ------- -------- ------ -----
0.3% Cu CUOX 136 0.96 0.03
---------- ------- -------- ------ -----
CUVC 29 0.44 0.03
------------------ -------- ------ -----
HICU 359 1.07 0.03
------------------ -------- ------ -----
PBCG 1,702 0.70 0.13
------------------ -------- ------ -----
0.3/t Au AUOX 106 0.03 0.45
---------- ------- -------- ------ -----
TOTAL 2,331 0.74 0.12
------------------ -------- ------ -----
Notes: Historic Reverse Circulation data excluded from grade
estimation; Maximum distance of extrapolation = 80m; All resources
categorised as Inferred resources; Grade estimation using
inverse-distance weighting; Updated wireframes for Polymict
Breccia, base-of-oxides and topography. Unconstrained tonnage
estimate.
Notable new drill intersections from KB copper zone drill holes
include:-
-- KED 001 - 60.25m @ 1.48% Cu and 0.12g/t Au from 89.75m
-- KED 006 - 18.8m @ 1.5% Cu and 0.1g/t Au from 47.0m
-- KED 008 - 28.6m @ 1.6% Cu and 0.8g/t Au from 47.4m
-- KED 011 - 46.4m @ 2.88% Cu and 0.1g/t Au from 19.6m
Exploration Upside
Resource drilling to date validates the Board's confidence in
its exploration programme and confirms that copper-gold sulphide
and gold oxide mineralisation extends well beyond the limits of the
original discovery programme. The current surface area of the
target defined by a combination of gold and copper-in-soil
geochemistry, channel sampling, excavation, geological mapping,
ground geophysics, and drilling now extends to an approximate 1km
by 1km area, equivalent in size to the current rim of the nearby
Madneuli open pit. The extent of copper and gold mineralisation
throughout the KB area is indicative of a large well-mineralised
system where the Company has to date only tested a small area.
Image 1: Kvemo Bolnisi East Project (see PDF)
Table 2 - Notable Drilling Intersections from Kvemo Bolnisi
Copper Zone Drill Programme
Au
HOLE ID From To Interval Cu% gt
---------- --------------- ------- --------- ------ ------
KBRC074D 0.00 21.00 21.00 -0.10 0.68
---------- --------------- ------- --------- ------ ------
KBRC074D 23.00 30.30 7.30 0.81 0.12
---------- --------------- ------- --------- ------ ------
KBRC074D 43.00 71.00 28.00 0.53 0.56
---------- --------------- ------- --------- ------ ------
KBRC074D 71.00 79.30 8.30 -0.10 0.40
---------- --------------- ------- --------- ------ ------
KBRC074D 79.30 97.00 17.70 0.24 0.31
---------- --------------- ------- --------- ------ ------
KBRC075D 19.00 32.00 13.00 0.38 -0.10
---------- --------------- ------- --------- ------ ------
KBRC075D 52.00 63.00 11.00 0.38 -0.10
---------- --------------- ------- --------- ------ ------
KBRC075D 88.00 101.00 13.00 0.46 -0.10
---------- --------------- ------- --------- ------ ------
KBRC042D 23.00 106.00 83.00 0.73 0.12
---------- --------------- ------- --------- ------ ------
KED001 0.00 31.00 31.00 1.10 -0.10
---------- --------------- ------- --------- ------ ------
KED001 89.75 150.00 60.25 1.48 0.12
---------- --------------- ------- --------- ------ ------
KED002 0.00 14.00 14.00 -0.10 0.28
---------- --------------- ------- --------- ------ ------
KED002 32.00 67.00 35.00 0.37 -0.10
---------- --------------- ------- --------- ------ ------
KED002 128.40 133.00 4.60 0.33 -0.10
---------- --------------- ------- --------- ------ ------
KED002 176.00 185.00 9.00 0.39 -0.10
---------- --------------- ------- --------- ------ ------
KED003 0.00 20.00 20.00 -0.10 0.46
---------- --------------- ------- --------- ------ ------
KED003 21.00 32.00 11.00 0.46 0.19
---------- --------------- ------- --------- ------ ------
KED003 46.50 66.00 19.50 0.85 0.18
---------- --------------- ------- --------- ------ ------
KED004 108.00 134.00 26.00 2.67 0.23
---------- --------------- ------- --------- ------ ------
KED004 221.00 227.00 6.00 0.82 -0.10
---------- --------------- ------- --------- ------ ------
KED005 0.00 11.00 11.00 0.20 -0.10
---------- --------------- ------- --------- ------ ------
KED006 0.00 13.00 13.00 0.38 -0.10
---------- --------------- ------- --------- ------ ------
KED006 17.00 26.00 9.00 0.25 -0.10
---------- --------------- ------- --------- ------ ------
KED006 47.00 65.80 18.80 1.50 -0.10
---------- --------------- ------- --------- ------ ------
KED007 11.00 17.00 6.00 1.83 -0.10
---------- --------------- ------- --------- ------ ------
KED007 96.00 114.00 18.00 0.56 -0.10
---------- --------------- ------- --------- ------ ------
KED007 118.00 131.00 13.00 0.30 -0.10
---------- --------------- ------- --------- ------ ------
KED008 22.00 44.00 22.00 0.45 -0.10
---------- --------------- ------- --------- ------ ------
KED008 47.40 76.00 28.60 1.60 0.80
---------- --------------- ------- --------- ------ ------
KED008 87.00 123.60 36.60 0.39 -0.10
---------- --------------- ------- --------- ------ ------
KED008 141.00 167.00 26.00 0.25 0.16
---------- --------------- ------- --------- ------ ------
KED009 89.00 99.00 10.00 0.30 -0.10
---------- --------------- ------- --------- ------ ------
KED009 103.00 108.00 5.00 0.30 -0.10
---------- --------------- ------- --------- ------ ------
KED010 64.10 69.00 4.90 0.41 -0.10
---------- --------------- ------- --------- ------ ------
KED011 19.60 66.00 46.40 2.88 -0.10
---------- --------------- ------- --------- ------ ------
KED011 75.80 117.00 41.20 1.18 0.13
---------- --------------- ------- --------- ------ ------
KED011 123.00 132.10 9.10 1.18 -0.10
---------- --------------- ------- --------- ------ ------
KED012 58.4 70 11.6 0.42 -0.10
---------- --------------- ------- --------- ------ ------
KED013 38 42 4 0.31 -0.10
---------- --------------- ------- --------- ------ ------
KED014 109.4 149 39.6 0.37 -0.10
---------- --------------- ------- --------- ------ ------
KED015 5.9 16 10.1 0.33 -0.10
---------- --------------- ------- --------- ------ ------
KED015 24.7 45 20.3 0.90 0.15
---------- --------------- ------- --------- ------ ------
KED015 69.2 79 9.8 0.88 0.18
---------- --------------- ------- --------- ------ ------
KED016 18 32.1 14.1 0.41 0.42
---------- --------------- ------- --------- ------ ------
KED017 33.90 46.00 12.10 1.13 -0.10
---------- --------------- ------- --------- ------ ------
KED017 53.00 101.00 48.00 0.82 -0.10
---------- --------------- ------- --------- ------ ------
Mettalurgical
KED018 Sample
---------- --------------- ------- --------- ------ ------
Mettalurgical
KED019 Sample
---------- --------------- ------- --------- ------ ------
KED020 0 8 8 0.20 -0.10
---------- --------------- ------- --------- ------ ------
KED021 46.7 64 17.3 0.46 0.10
---------- --------------- ------- --------- ------ ------
KED022 47.00 54.00 7.00 0.26 0.12
---------- --------------- ------- --------- ------ ------
KED022 69.00 73.00 4.00 0.37 -0.10
---------- --------------- ------- --------- ------ ------
Mettalurgical
KED023 Sample
---------- --------------- ------- --------- ------ ------
KED024 7 12.2 5.2 0.27 0.17
---------- --------------- ------- --------- ------ ------
KED025 0 4 4 0.70 0.21
---------- --------------- ------- --------- ------ ------
KED025 19 30 11 0.40 0.36
---------- --------------- ------- --------- ------ ------
KED026 5 6.9 1.9 0.40 1.33
---------- --------------- ------- --------- ------ ------
KED027 132.5 176 43.5 0.57 -0.10
---------- --------------- ------- --------- ------ ------
KED027 186 193 7 0.32 0.15
---------- --------------- ------- --------- ------ ------
KED028 12.00 26.00 14.00 0.81 -0.10
---------- --------------- ------- --------- ------ ------
KED028 156.10 177.00 20.90 1.51 -0.10
---------- --------------- ------- --------- ------ ------
KED029 99 103 4 0.18 0.15
---------- --------------- ------- --------- ------ ------
KED030 30 41 11 0.67 0.25
---------- --------------- ------- --------- ------ ------
KED030 53.05 77 23.95 0.14 -0.10
---------- --------------- ------- --------- ------ ------
KED030 252.8 259.1 6.3 0.32 0.16
---------- --------------- ------- --------- ------ ------
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" The Jorc Code (2012)
-------------------- ------------------------------------------
"JORC Code (2012)" 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.
-------------------- ------------------------------------------
**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
Elisabeth St Brides Partners PR Tel: 020 7236
Cowell Ltd 1177
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.
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 proximal to existing
mining operations which are owned by the Company's supportive joint
venture partner. Georgia has an established mining code and is a
jurisdiction open to direct foreign investment.
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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