Cerillion Regulatory News (CER)

24 May 2007 09:47

Celtic Resources Holdings PLC24 May 2007 FOR IMMEDIATE RELEASE 24th May 2007 Celtic Resources Holdings Plc ("Celtic" or "the Company") New Molybdenum Projects Celtic Resources ("Celtic"; ticker "CER") is pleased to announce that it hasbeen awarded licences for three molybdenum prospects in Central and NorthernKazakhstan. Highlights: •Principally molybdenum deposits, with ancillary copper and gold at one deposit •Significant exploration work completed including geochemical, trenching, geophysical surveying, core drilling and initial resource estimates •All projects have good access to infrastructure including power, water and rail •Initial exploration expenditure of US$3million planned to define resource The Deposits: Akkuduk (Mo) The deposit is located in the Shetski region of Karaganda, central Kazakhstanand occurs as stockworks and mineralised granite porphyry intrusives in volcanicstratigraphy. Selected drill results gave 69.4m at 0.12% Molybdenum (Mo), 26m at0.10% Mo and 33.4m at 0.12% Mo. P1 resource potential is presently 12,000 tonnesof Mo. Zhilandy (Mo, Cu, Au) This deposit is near Kurchatov in the Pavlodar region, in northern Kazakhstanand occurs as Mo and Cu mineralisation associated with a porphyry intrusivesystem within volcanic host rocks. The intrusives also carry gold, silver, leadand uranium. Significant molybdenum intersections include 8m at 0.11% Mo, 0.5mat 1.0% Mo and 2.5m at 0.8% Mo. Gold mineralisation intersections included 15mat 2.23g/t Au and 27m at 0.2-9.7 g/t Au. Itmuryn (Mo) This deposit is located 155km from Stepnogorsk in northern Kazakhstan, whereCeltic Resources Shorskoye molybdenum ore is treated. The mineralisation ishydrothermal stockwork in volcanics that has been extensively altered andcovered with 18-24m of sediments. Limited shallow core drilling was completedbut a single drill hole of 167m intersected molybdenum mineralisation overalmost its entire length. Selected intersections were 4.3m at 0.106% Mo, 3.6m at0.199% Mo and 2.7m at 0.136% Mo. Commenting on the licences, Kevin Foo, Managing Director said, "Our success atthe Shorskoye molybdenum project and the buoyant prices of molybdenum hasprovided the incentive to seek other opportunities that utilise our experiencein the FSU. These acquisitions are reasonably well advanced explorationproperties that may be fast tracked to production if the planned resourcedefinition programme meets our expectations." For further information please contact: Kevin Foo / Jonathan Scott-Barrett Leesa Peters/ Jane StaceyCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 20 7429 6600/ + 44 (0)781 215 9885Investors@celticresources.com leesa@conduitpr.com Frank Moxon / Simon EdwardsEvolution Securities LimitedTel: +44 (0) 20 7071 4300www.celticresources.com For the full technical report please visit our website www.celticresources.com . New Molybdenum licences Awarded Celtic announces that the Kazakhstan government has awarded the opportunity todevelop three molybdenum licences in Central and Northern Kazakhstan - Akkuduk,Zhilandy and Itmuryn. The consideration for the licences was zero. All threelicences are valid for three years of exploration. There are minimum expenditureobligations which vary between the licenses, as detailed below, and total up to$3milllion in total over the 3 year period. At any time during this period aneconomic discovery may be declared and a mining and exploitation licenseobtained. Molybdenum mineralisation, with ancillary copper and gold was discovered at theprojects in porphyry systems during exploration by Kazakh geologists in the 70'sand early 90's. The style of mineralisation is similar to that at the CelticResources Shorskoye molybdenum mine which was successfully developed in 2005. Celtic has planned an extensive exploration programme aimed at target andresource definition. Field programmes will commence in 2008 after completion ofall licensing and permitting requirements The preliminary estimate ofexploration expenditure required is US$3 million comprising core drilling, RCdrilling, trenching and geophysical surveys. Akkuduk The project is located in the Shetski district of Karaganda oblast. Extensiveinfrastructure exists in the region, with a railway station and 500MW power linewithin 25km of the project. The Karatas Mo-Cu deposits are located 60-75km SE ofthe project area. Several zones of Mo mineralisation have been identified, occurring as stockworksand disseminations in volcanic host lithologies. Granitic porphyry intrusivesare also mineralised and cross cut the volcanic stratigraphy. Two distinctanomalies of Mo are present with a separation of approximately 3km. Both zonesare identified as Induced Polarisation (IP) anomalies and coincide with magneticlows. Oxidation levels typically extend from 30 to 35m below surface. Drilling at the project was carried out by government organisations in the1960's and 1970's. Better intersections from that drilling include: • Hole 22 - 14.2m at 0.073% Mo from 14.8m, 26m at 0.101% Mo from 29m and 69.4m, at 0.12% Mo from 111.1m. • Hole 29 - 33.4m at 0.12% Mo from 74.4m Government geologists previously identified the project to have P1 Resourcepotential of 10-12,000 tonnes of Mo. The exploration agreement is granted for a period of three years. It is plannedthat field work will begin in 2008 with minimum annual expenditure requirementsof US$150,000 in year 1, US$300,000 in year 2 and US$350,000 in year 3. Zhilandy The Zhilandy project is located 50km west of the town of Kurchatov and 125km NNWof Celtic's Shorskoye mine. The recently constructed Pavlodar-Kurchatov railwayline and road are 25km north of the deposit. The nearest settlement is Karaterekvillage, located on the Irtysh River, some 30km NNE of the deposit. A 500kWpower line is located within 3km of the deposit. The Mo and associated Cu mineralisation is associated with a porphyry intrusivesystem within volcanic host lithologies. Several phases of mineralisedintrusives have been identified at the project carrying varying levels ofaccessory metals including gold, silver, lead and uranium. Oxidation levelstypically extend from 21 to 28m below surface. Two distinct geochemical anomalies identify the mineralised areas. The northernanomaly is coincident with a 6km by 3km IP anomaly. The mineralisation at Zhilandy was discovered in 1947 as a result of ageochemical survey of the region. Varying amounts of exploration work have beencompleted since that time with the most recent drilling carried out in 1993.Completed exploration work includes geophysical surveys, surface trenching, 245shallow drill holes to identify bedrock and 12 deep core drill holes. Betterintersections from the core drilling include: • Hole 23 - 1.5m at 0.135% Mo from 22.5m, 1.5m at 0.13% Mo from 34m 0.5m at 1.0% Mo, from 69m and 8m at 0.11% Mo from 86m. • Hole 5 - 2.5m at 0.8% Mo from 109m Gold mineralisation was also discovered at the project. Better intersectionsinclude: • Hole 707 - 15m at 2.23g/t Au from 4m • Hole 11 - 27m at 0.2-9.7g/t Au from 2m The portions of the deposit with potential for Mo and Au mineralisation havebeen tested with very sparse core drilling. Potential remains to delineateeconomic resource and this will be tested with planned core drilling. The exploration agreement is granted for a period of three years. It is plannedthat field work will begin in 2008 with minimum annual expenditure requirementsof US$150,000 in year 1, US$300,000 in year 2 and US$350,000 in year 3. Itmuryn The Itmuryn project is located 155km east of Stepnogorsk where ore from theShorskoye mine is processed. The railway station of Bozshakol is 55km from theproject and an 1150KV power line runs within 5km of the prospective area. The Mo mineralisation is associated with a hydrothermal stockwork system withinvolcanic host lithologies. Extensive alteration including sericitisation,silicification and sulphidisation are present. Transported sediments occur to adepth of 18 to 24m and a zone of oxidation typically extends a further 11m belowthe sediments. The mineralisation at Itmuryn was discovered in 1976 during regionalprospecting. Initial work included geophysical (IP, magnetic, gravimetric) andgeochemical surveys. Limited core drilling was subsequently completed and Momineralisation was intersected in a single drill hole, Hole 399. Betterintersections from the core drilling include: • Hole 399 - 4.3m at 0.106% Mo from 43.5m, 3.6m at 0.199% Mo from 86.4m and 2.7m at 0.136% Mo from 160.3 It was notable in Hole 399 that Mo mineralisation was identified over almost theentire 167m length of the hole. The nearest adjacent hole is located 1000m tothe north. Whilst poorly defined, the extensive Mo mineralisation in Hole 399,coupled with the transported overburden results in the project area remaininghighly prospective for a substantial Mo deposit. Drilling has been planned totest that potential. The exploration agreement is granted for a period of three years. It is plannedthat field work will begin in 2008 with minimum annual expenditure requirementsof US$150,000 in year 1, US$250,000 in year 2 and US$350,000 in year 3. 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. 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