In addition, the copper-gold miner's subsidiary Georgian Copper & Gold JSC has entered a memorandum of understanding with RMG Gold LLC, sister firm of Caucasian Mining, for the mining and processing of ore from the Kvemo Bolnisi East target.
The work programme will focus on building a mining operation at Kvemo Bolnisi East Gold Zone 2, and the drill programme will further expand the copper-gold sulphides resources which are currently open and move into the wider Kvemo Bolnisi area.
Infill drilling to define resources is expected to start in April and take two months to complete. Alongside drilling, bulk sampling, metallurgical testwork, site investigations and environmental studies will be carried out at Gold Zone 2, and both companies will start processes to obtain environmental and construction permits for extraction.
The memorandum of understanding is for the mining, hauling and processing of ore from Kvemo Bolnisi East at one of RMG'S processing plants at the Madneuli and Sakdrisi mines nearby.
The agreement of the memorandum is subject to the completion of the work programme, and a positive feasibility study for the project.
"The development of the gold oxides, and expansion of the copper-gold sulphides at KBE is a core focus for ourselves and our partner. Initial production from the gold oxides will serve as a starter operation and pave the way for the subsequent exploitation of the primary copper-gold sulphide ores at KBE. We also firmly believe that KB and the licence area as a whole have excellent potential for a major discovery of large-scale epithermal gold-copper mineralisation, and this is the focus of our wider exploration programme," said Managing Director Greg Kuenzel.
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