Noricum Gold's new address is up an29 Feb 2016 13:53
proactiveinvestors.co.uk/companies/news/122176/noricum-gold-s-new-address-is-up-and-coming-fast-122176.html
To highlight:
'Drilling will be followed by pit design and mine planning with first production targeted by the end of June, 2016.'
0:45 24 Feb 2016
Noricum is revising the historical data using modern western mining benchmarks
Noricum Gold's new address is up and coming fast
INVESTMENT OVERVIEW: NMG The Big Picture
'The low stripping rates make the prospect a unique opportunity'
Noricum Gold’s (LON:NMG) acquisition last year of a 50% stake in the 861sq km Bolnisi licence has seemingly given it a new lease of life as well as a change of address.
Having originally focused on Austria, the new project is in the former Soviet Republic of Georgia.
While the skiing might not be as good, the historical data suggests its move to a new neighbourhood may have got Noricum a cracking deal.
The Bolnisi VMS district forms part of the larger Tethyan belt.
Mines nearby include Murgul with 14.5Mt (million tonnes) at 3% copper and Ceratepe with 4Mt at 5% copper and 1 grams per tonne (g/t) gold.
It is the latter that Noricum will focus on initially, but the existing infrastructure in the area adds another angle to what management believe is a turning point for the company.
Most of the exploration work undertaken on the licence was carried out during the Soviet era.
Noricum is revising the historical data using modern western mining benchmarks and so far says the accuracy and reliability has been robust.
It paid a consideration of £2.61mln in shares that also gave it operational control.
Noricum has used its cash to convert the historical non-JORC resources and to help select the best places to start open pit production.
The licence's resource consists of 980,000 tonnes of contained copper, 6.6 mln oz of gold and 22 mln ounces of silver, but within that were three high priority drill-ready targets.
Noricum’s first holes from the Kvemo Bolnisi prospect had confirmed its potential as an easily mined starter gold pit.
Surface grades included 4.2m at 5.91g/t gold and 4.8m at 1.05 g/t, consistent with best historical grades of between 3.4g/t and 7.7 g/t.
Kvemo Bolnisi’s current non-JORC resource is 530,000oz at an average grade of 1.02%.
The low stripping rates make the prospect a unique opportunity said Greg Kuenzel, Noricum’s managing director, as it can use the nearby facilities of its partner Caucasian Mining (CMG) to process any ore produced.
The deposit is less than 7km from the currently operating Madneuli mine and processing plant, owned by CMG.
Drilling will be followed by pit design and mine planning with first production targeted by the end of June, 2016.
"These excellent initial results from our ongoing drill programme at Kvemo Bolnisi continue to highlight the potential for early stage low cost production at the first of our starter pit targets,” s
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