Georgian Mining Corp (LON:GEO) has today provided 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 this link: GEO Update
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.
Georgian Mining Corp 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.
