Cerillion Regulatory News (CER)

1 Nov 2007 07:01

Celtic Resources Holdings PLC01 November 2007 Celtic Resources Holdings Plc ("Celtic" or "the Company") CONTINUED POSITIVE EXPLORATION RESULTS AT SUZDAL GOLD MINE Celtic announces that recent exploration at its 100% owned Suzdal gold mine inKazakhstan has continued to define high grade extensions to the 1.376m ouncegold resource. Following promising results which were reported in a May 2007 Resource Update,an enhanced exploration programme for Suzdal was developed with three keyobjectives: • To confirm the extent and continuity of existing resources • To test for extensions to known mineralisation, especially the higher grade zones of Orebody 1/3 and Orebody 2 • To explore for new zones of mineralisation within the Suzdal licence area This programme has been continuing with two surface rigs and one undergroundrig. Since the May 2007 exploration update, a total of 10 surface holes and 23underground holes have been completed. Underground drilling was targeted at two main areas - resource confirmationdrilling in Orebody 2, and exploration drilling at Orebody 1/3. Results at Orebody 2 are very encouraging and provided increased confidence inthe Orebody 2 resource and demonstrated the potential for higher grade zoneswithin the broader resource. Best results from Orebody 2 drilling included: • 7m at 9.72g/t Au from 18m • 3m at 6.97g/t Au from 7m • 4m at 11.58g/t Au from 33m In Orebody 1/3 encouraging results have been returned from face sampling ofdevelopment drives at the eastern portion of the orebody where no resource waspreviously defined. This area has been largely untested by drilling due toaccess problems from the open pit. Three drives have been extended into thisarea and have returned the following: • 193mRL Drive - 43m strike, 2.5m average width at 7.4g/t Au • 193mRL Drive - 41m strike, 2.0m average width at 14.6g/t Au • 206mRL Drive - 43m strike, 2.7m average width at 14.1g/t Au • 214mRL Drive - 38m strike, 2.2m average width at 9.2g/t Au Celtic Resources Managing Director Kevin Foo commented, "These results providefurther encouraging signs of the potential to add to the high grade resources atSuzdal. We will incorporate these findings into a revised resource model in duecourse". Contact information: Kevin Foo / Jonathan Scott-BarrettCeltic Resources Holdings PlcTel: + 44 (0)20 7921 8800Investors@celticresources.com Leesa Peters / Jane StaceyConduit PRTel: +44 (0)20 7429 6606 / (0)792 292 3306leesa@conduitpr.com Anthony Cardew / Shan Shan WillenbrockCardew GroupTel: +44 (0)20 7930 0777anthony.cardew@cardewgroup.com Simon Raggett / Stuart FaulknerStrand Partners LimitedTel: +44 (0)20 7409 3494 Further Information Resource Confirmation Drilling Orebody 2 Results at Orebody 2 are very encouraging, with the majority of drill holesintersecting resource grade mineralisation. This was supported by the high gradegold mineralisation demonstrated by the detailed sampling of the undergrounddevelopment. Overall the results provide increased confidence in the Orebody 2resource and demonstrate the potential for higher grade zones within the broaderresource. Best results from the Orebody 2 drilling included: • 7m at 9.72g/t au from 18m • 3m at 6.97g/t Au from 7m • 4m at 11.58g/t Au from 33m Underground sampling targeting high grade results confirmed continuity of highgrade mineralisation with mineable zones greater than 10 g/t gold in some areas.It is expected that these areas may be available for exploitation within thenext 12-18 months. Sampling in some parts highlighted the need for a revision inthe geometry of the resource model which is currently being updated. Underground drilling, while limited, does demonstrate the geometry andcontinuity of the mineralisation encountered in the development. It confirms thegeneral magnitude of the previously estimated resources and suggests that themineralisation is potentially higher in grade than estimated in the resourcemodel. The current resource for Orebody 2 is 1.2Mt at 6.7g/t for 255,000 ouncesof gold. It is expected that a revised resource model will be completed by theend of December 2007. Underground Exploration in Orebody 3 Drilling at Orebody 1/3 was directed at testing for additional resources byexploring up and down dip of known high grade zones, and testing for footwalland hanging wall mineralisation. In general the drilling did not locateadditional mineralisation, confirming the previous resource interpretation.However encouraging results have been returned from face sampling of developmentdrives at the eastern portion of Orebody 1/3 where no resource was previouslydefined. This area has been largely untested by drilling due to access problemscaused by the open pit. Three drives have been extended into this area and havereturned the following: • 193mRL Drive - 43m strike, 2.5m average width at 7.4g/t Au • 193mRL Drive - 41m strike, 2.0m average width at 14.6g/t Au • 206mRL Drive - 43m strike, 2.7m average width at 14.1g/t Au • 214mRL Drive - 38m strike, 2.2m average width at 9.2g/t Au This high grade gold mineralisation remains open along strike and up and downdip and will be subject to further development and underground diamond drillingonce access is established. To date, development of the 193mRL level has defined a strike extent to the highgrade of approximately 75m beyond the limit of the resource. The high grade zoneis not closed off along strike or up and down dip. The target potential of thiszone is in the order of 50,000-100,000T at 10-20g/t Au. The adjacent resourceblock contains 140,000T at 16.9g/t and the newly defined mineralisation is adirect strike extension of that zone. Exploration Drilling from Surface Surface drilling has continued in the area between Orebody 1/3 and Orebody 2where high grade intersections from early in 2007 were being followed up.Results have been returned from 7 holes and have been variable, suggesting thatsome structural complexity exists in this area. Better results from thisdrilling included: €2m at 12.2g/t au from 18m €3m at 6.2g/t Au from 7m Attribution The information in this report that relates to Exploration Results and MineralResources is based on information compiled by Mr Paul Payne who is a member ofThe Australasian Institute of Mining and Metallurgy. Mr Payne is the Principalof Resource Evaluations Pty Ltd, and a consultant to Celtic and has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2004 Edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Payneconsents to the inclusion in the report of the matters based on his informationin the form and context in which it appears. Any person who is the holder of 1 per cent. or more of any class of shares inCeltic may be required to make disclosures pursuant to Rule 8.3 of the IrishTakeover Panel Act, 1997, Takeover Rules 2001 to 2006. The Directors of Celtic accept responsibility for the information contained inthis announcement and to the best of their knowledge and belief (having takenall reasonable care to ensure that such is the case), the information containedin this announcement is in accordance with the facts and, where appropriate,doesnot omit anything likely to affect the import of such information. This information is provided by RNS The company news service from the London Stock Exchange