TIDMGEO
RNS Number : 9522L
Georgian Mining Corporation
25 July 2017
25 July 2017
Georgian Mining Corporation
Exploration Update at Kvemo Bolnisi East and Regional
Targets
Georgian Mining Corporation ('GEO') is pleased to provide an
operational update on work currently underway at the Kvemo Bolnisi
East Project ('KB' or the 'Project'), as well as the commencement
of regional exploration targeting future discoveries in the wider
860 sq km licence area. The Project is located in an established
copper-gold region in Georgia along the highly prospective Tethyan
Belt. To view the press release with the illustrative diagram
please use the following link:
http://www.rns-pdf.londonstockexchange.com/rns/9522L_-2017-7-24.pdf
Update on three phase strategy at KB Project to deliver a 50Mt
resource
-- 1,500 metres of infill and boundary drilling completed in the
past three weeks on Gold Zone 2 ('GZ2') - results will be used to
upgrade the current JORC (2012) Mineral Resource (see announcement
published on 11 July 2017 for further details) on the gold oxides
at GZ2.
-- Over 1,500 samples from recent drilling at GZ2 will be sent
for assay at ALS Laboratories in Ireland following prep - expected
to take 2-3 weeks to complete due to backlog at JV partner's sample
preparation facility in Bolnisi
-- Preliminary resource assessment and mining feasibility study
('Study') on initial production target of GZ2 being finalised -
will provide the basis for a detailed agreement covering the terms
and timetable for mining and processing of the gold oxide ore at
nearby mines owned by GEO's JV Partner
-- Drilling is now underway at Gold Zone 1 ('GZ1') to test the
base of the previously identified gold oxide mineralisation, the
extent of copper mineralisation continuing at depth as well as the
area between GZ1 and Copper Zone 1 ('CZ1') - Refer Image 1
-- Drilling of high grade copper mineralisation at GZ2 with
second drill rig to commence during August 2017
-- Initial JORC Copper ('Cu') resource (as announced on 25 April
2017) currently being upgraded for Cu mineralisation intersected
below the base of gold oxides at GZ2 as part of the recently
completed 64 hole drill programme - a Study will then be prepared
on the initial mineable Cu deposit in preparation for a second
production and processing agreement with JV partner
-- GEO is on course to deliver the Phase 2 target of 3-5Mt of
combined copper-gold sulphide and gold oxide mineralisation at
KB
Additional targets within the licence area offer potential to
expand the resource beyond the 50Mt exploration target in place for
KB
-- Regional exploration work including detailed mapping and soil geochemistry is underway at:
o Dambludka, an epithermal gold project covering an area of 2km
by 1km, 8km SW of the Madneuli mine
o Tsitel Sopeli located 12km NE of Madneuli Mine and processing
facility and 6km E of KB where a recent IP survey identified a Hot
Madden type target
o Tamarisi, a gold-copper deposit 12km east of KB where an
Induced Polarisation ('IP') geophysics survey is planned to
commence in the coming weeks.
GEO Managing Director Greg Kuenzel said, "Following the
completion of infill drilling on our initial gold resource at GZ2,
we now have approximately 1,500 samples waiting to be prepared for
assay at CMG's sample prep facility in Bolnisi. Due to a backlog at
the prep facility, this is expected to take two to three weeks to
complete. With the metallurgical test work on the gold oxides now
completed, we are completing the last steps required to finalise
the preliminary mine feasibility study which will be used as the
basis for agreeing the terms for a production and processing
agreement with our JV partner.
"We are currently drilling at GZ1 down to a depth of 180 metres
having only previously tested this zone down to 10 metres by
handheld drilling in mid 2016. This is designed to test the base of
the gold oxides as well as the potential for additional copper
mineralisation below the gold oxides similar to that discovered at
GZ2. Once capacity is available at the prep facility, we will also
commence drill testing the high grade Cu mineralisation at GZ2
where previous results included 16m @ 15.4% Cu from 47m. Thanks to
the recently oversubscribed private placement, we are also able to
advance our work on new targets across the licence area, as we
focus on transforming Georgian into a major European copper and
gold developer and producer."
Image 1: KB Geology - Gold Zone 1, Gold Zone 2 and Copper
Zone
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. These projects are nearby
existing mining operations owned by the Company's supportive joint
venture partner. Georgia has an established mining code and is a
jurisdiction open to direct foreign investment.
The Company 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 (on
target)
-- Phase 3: Long term target - to delineate a resource of 50Mt+
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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