TIDMOVG
RNS Number : 9349K
Ovoca Gold PLC
29 August 2012
Ovoca Gold Plc ("Ovoca Gold" or the "Company")
Operational Update
Ovoca Gold is pleased to provide an update on its ongoing 2012
field work on its Stakhanovskiy and Rassoshinskaya projects.
Highlights
Stakhanovskiy Project:
-- Processing of 16,586 tonnes (for the 2012 calendar year to
date) of primary rock from the Berezitoviy and Zabolocheniy ore
bodies by gravity concentration plant
-- 10,667 tonnes mined from Zabolocheniy, 5,288 tonnes from
Albitoviy, and 2,285 tonnes from Berezitoviy bulk sample
trenches
Rassoshinskaya Project:
-- Podgorniy Prospect: Three HQ core drill holes intercepted:
1.2 metres at 10.40 g/t gold and 101.00g/t silver from 26.0
metres depth
2.9 metres at 7.94 g/t gold and 18.70 g/t silver from 34.4
metres depth
0.9 metres at 10.00 g/t gold and 11.50 g/t silver from 356
metres depth
-- Bazaar Prospect: New high sulphidation type pyrite
mineralization, with gold grade unknown, discovered within a 600
metre trench and from 1,050 metres of core drilling
-- Agromniy Prospect: 1,000 metres of surface trenching exposed
a high grade lead-silver (and potential gold) quartz vein at least
250 metres in length
At the Stakhanovskiy Project, the bulk sampling mill continues
to perform in line with expectations. Assay results are being
received from the Knelson concentrator tailings and shaking table
products.
At the Rassoshinskaya Project, NQ-sized diamond core drilling
has been undertaken at the Bazaar Prospect, located 2km to the east
of Podgorniy and 65km to the north of the Olcha JORC Inferred
resource. The final assay results at the Zet Prospect demonstrate
that the typical mineralisation at this prospect is composed of
small high grade gold-silver quartz-adularia veining within a broad
zone of low grade, but anomalous, gold and silver values. At the
Podgorniy Prospect, moderate grade gold mineralisation was shown to
continue to 356m vertical depth from surface. Scenarios for
significant gold-silver resources at Podgorniy and Zet have now
been reduced.
Kirill Golovanov, CEO of Ovoca Gold plc, remarked: "July 2012
has seen significant volumes of planned field work completed. Now
that blasting is completed for bulk sampling, diamond core drilling
has started at the Stakhanovskiy Project with Wardell Armstrong
International consultants working with us to prepare an updated
resource estimate by the end of this year."
"At the Rassoshinskaya Project, field work was focused during
the month on our new prospect, Bazaar, with trenching and diamond
drilling exposing a significant extensive high sulphidation
alteration pyrite-rich system. The first assays should be received
soon. At the Agromniy Prospect, a trench exposed a 250m long quartz
vein containing lead and silver with very high gold and silver
assays from surface float samples (previously announced in the 2011
Annual Report). More trenching is planned to test the widths along
this strike length. With the current targets at Bazaar and
Agromniy, and a further porphyry copper-gold target to test at the
Vist Prospect, exploration success for this field season may be
achieved".
Rassoshinskaya Project
Zet Prospect
All finalised assay results were received from diamond drilling.
The historical and current results show that although there are
some high gold and silver assay grades within this 2.5km long
multiple quartz vein system, the widths of mineralisation are not
large enough to warrant a resource drill out at this stage. The
drilling and trenching suggest that Zet could contain enough
mineralisation to be developed as a small open pit satellite mining
operation if another larger orebody could be developed on the
project. A full assessment of all exploration results with
recommendations for field work is to be undertaken next year.
Podgorniy Prospect
A deep drill hole tested the extent of the depth of gold
mineralisation in the central zone. A significant gold intersection
was found deep in this drill hole and indicates that gold-silver
mineralisation persists at considerable depth in the central zone.
Drill results are shown in Table 1. A total of 162 samples assays
are awaited.
Table 1: Podgorniy Prospect diamond core drill intersections,
Fire Assay 50g, >1g/t gold
Drill Down Depth Interval Gold Grade Silver
Hole Name hole from Surface (m) g/t Grade
depth (m) g/t
(m)
------------ ------- -------------- --------- ----------- -------
PGDD-48 74.8 76.3 1.5 2.36 53.80
------------ ------- -------------- --------- ----------- -------
PGDD-49 14.6 15.5 0.9 1.20 0.50
------------ ------- -------------- --------- ----------- -------
PGDD-49 19.4 19.9 0.5 3.01 34.50
------------ ------- -------------- --------- ----------- -------
PGDD-51 26.0 27.2 1.2 10.40 101.00
------------ ------- -------------- --------- ----------- -------
PGDD-51 169.6 170.6 1.0 1.00 2.47
------------ ------- -------------- --------- ----------- -------
PGDD-54 182.5 183.8 1.3 1.53 3.99
------------ ------- -------------- --------- ----------- -------
PGDD-55 34.4 37.3 2.9 7.94 18.70
------------ ------- -------------- --------- ----------- -------
PGDD-55 164.8 165.8 1.0 1.55 1.02
------------ ------- -------------- --------- ----------- -------
PGDD-55 167.8 168.8 1.0 1.04 3.19
------------ ------- -------------- --------- ----------- -------
PGDD-57 229.5 230.4 0.9 6.00 2.47
------------ ------- -------------- --------- ----------- -------
PGDD-57 356.0 356.9 0.9 10.00 11.50
------------ ------- -------------- --------- ----------- -------
PGDD-57 358.0 361.2 3.2 3.37 3.94
------------ ------- -------------- --------- ----------- -------
Bazaar Prospect
Five NQ core drill holes for 1,050m were completed. Two diamond
drill holes were completed beneath a single 600m long trench where
quartz-pyrite stockwork and barite mineralisation was discovered.
These two holes indicated significant alteration and tectonic
structures trended towards an unconformity. An additional three
drill holes were completed along 800m of strike towards and across
the unconformity, west of the trench. A total of 196 samples for
assay were taken from the most favorable zones initially. In the
most westerly located drill hole (BDD-04) intense silica, pyrite,
clay, and white mica alteration was discovered around the contact
between Devonian volcanic rhyolite and Proterozoic basalt. The
drill hole was extended to 289m depth, well beyond its planned 150m
depth. The drill hole continued in 5% pyrite alteration. This is
the first time high sulphidation type mineralisation has been
discovered at Rassoshinskaya with extensive veining, breccia and
metasomatic associated pyrite. This type of gold mineralisation is
common in the South American Andes but not in the Russian northeast
and illustrates the potential for a new deposit type that may have
been overlooked by previous government geological expeditions.
Agromniy Prospect
An east-west oriented trench of approximately 1,000m was
completed, which uncovered basement rocks beneath colluvium which
was found to have rock chips anomalous in gold and silver. A
continuous quartz vein containing extensive silver and lead
mineralisation, at least 250 metres long, was exposed on the
contact with Cambrian dolomite and Devonian tuff. Three trenches
are planned perpendicular to the vein to assess the width, and
channel samples are to be collected. Five chip sample composites
from the trench have been taken for assay.
Stakhanovskiy Project
The bulk sampling plant is continuing to process budgeted
volumes at Stakhanovskiy. Since 3 June 2012, the hard rock
gravitation bulk sampling plant has averaged 204 tonnes per each 24
hour period. 16,586 tonnes of hard rock from the Berezitoviy and
Zabolocheniy ore bodies have been processed to date for 2012. The
gravity concentrates and samples from the bulk sampling mill on the
Stakhanovskiy site have been collected. All Knelson concentrates
from Berezitoviy (original sample 3,561 tonnes) have been processed
by shaking table (4,284 kg) in Magadan and the products are being
fire assayed by Alex Stewart Laboratories in Moscow. Some assay
results have been received but verification is required. Additional
assays from mill tailings are needed before an average gold grade
for the bulk sample from two different trenches at Berezitoviy can
be calculated.
At Zabolocheniy, a 25m long by 0.9m wide, continuous quartz vein
containing extensive visible gold was exposed in basement rock from
a 50m by 20m rectangular bulk sampling surface trench. This
illustrates that the Company's decision to bulk sample test the
deposit is well founded, as our prediction is that the resource
gold grade may well have been previously underestimated due to a
coarse gold distribution.
Glossary of Technical Terms
"barite" Baryte, or barite, (BaSO4) is
a mineral consisting of barium
sulfate;
"basalt" an igneous volcanic fine-grained
rock with low quartz and minerals
rich in iron and magnesium;
"breccia and fragments of broken generally
metasomatic" cemented rock and highly altered
rock resulting from fluids entering
the rock;
"bulk sampling" a mineral resource exploration
technique that takes large samples
of material from the resource
body under question to have a
statistical relevant sample size
for analysis;
"Cambrian" the first geological period of
the Paleozoic Era, lasting from
approximately 542 to 488.3 million
years ago;
"Devonian" a geologic period of the Paleozoic
Era spanning from 416 million
years ago to 359.2 million years
ago;
"diamond drilling" drilling conducted by a drill
bit 7 - 9 centimeters in diameter
with diamond parts that cuts through
rock and preserves a core of the
drill hole for extraction and
examination;
"dolomite" a carbonate rock mostly composed
of the mineral calcium magnesium
carbonate;
"gravity concentration a mill or plant that processes
plant and bulk large bulk samples of rock material
sampling mill" from a resource body by crushing,
grinding and concentration of
the heaviest rock constituents
such as sulphides and gold;
"high sulphidation mineralisation resulting from
mineralisation" hot acidic fluids derived from
magmas that react with host rocks;
"Knelson concentrator" a type of gravity concentration
apparatus, predominantly used
in the gold mining industry. It
is used for the recovery of fine
particles of free gold;
"porphyry copper a crystallized rock, typically
gold" with large and very small crystals
(porphyritic), having hairline
fractures that contain copper,
gold and other metals;
"Proterozoic" a geological eon representing
the time just before the proliferation
of complex life on Earth. The
name Proterozoic comes from Greek
and means "earlier life". The
Proterozoic Eon extended from
2,500 million years ago to 542
million years ago;
"pyrite" Iron sulphides commonly associated
with gold;
"quartz-pyrite Quartz and pyrite veins that are
stockwork" extensive and veins that are at
many different angles;
"rhyolite" an igneous, volcanic rock, of
felsic (silica-rich >69%) composition;
"shaking table" shaking tables are designed for
wet gravity-based separation of
minerals such as gold with the
products being tailings and gold
concentrates with other heavy
minerals such as sulphides;
"silica, pyrite, minerals that are frequently associated
clay, and white with high sulphidation mineralisation;
mica"
"tailings" the materials left over after
the process of separating the
gold-rich fraction from the uneconomic
fraction (gangue) of an ore;
"tuff" a type of rock consisting of consolidated
volcanic ash ejected from vents
during a volcanic eruption; and
"Unconformity" a surface separating two rock
masses or strata of different
ages, indicating that sediment
deposition was not continuous;
Contacts:
Ovoca Gold Plc
Kirill Golovanov +7 495 916 6029
Davy - NOMAD, ESM Adviser and Joint Broker
John Frain/Daragh O'Reilly +353 1 679 6363
Fairfax I.S. PLC - Joint Broker
Ewan Leggat/Laura Littley +44 207 598 5368
The above information has been compiled and verified by Mr.
Darren Allingham for the purposes of the AIM Note for Mining and
Oil & Gas Companies issued by the London Stock Exchange in June
2009. Mr. Allingham is a member of The Australasian Institute of
Mining and Metallurgy and The Australian Institute of Geoscientists
and is a JORC (2004) competent person for the type of minerals
being reported on in this statement. Mr. Allingham is a Geologist
with over 17 years of work experience in gold exploration, resource
estimation and mining, in thirteen different countries and has
Bachelors and Bachelors with honours degrees in geology from The
Australian National University and The University of Queensland,
Australia. Mr. Allingham consents to the inclusion in the
announcement of the matters based on their information in the form
and context in which it appears.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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