Cerillion Regulatory News (CER)

30 May 2007 07:01

Celtic Resources Holdings PLC30 May 2007 FOR IMMEDIATE RELEASE 30th May 2007 Celtic Resources Holdings Plc ("Celtic" or "the Company") Suzdal Mine Resource Update The Company is pleased to announce that recent surface drilling at its 100% owned Suzdal gold mine in Kazakhstan has defined high grade extensions to the resource. In addition, underground development has increased the confidence in the high grade nature and continuity of the deposit. This information demonstrates the potential for the discovery of additional high grade resources in close proximity to the operation. An updated independent resource estimate has also been completed for the Suzdal.It utilised the new drilling and development data and has resulted in a net increase of over 50,000 oz compared to the January 2006 Resource Statement. This is in addition to gold produced during 2006 and the first quarter 2007. Highlights •Recently completed surface drilling confirms extensions to mineralisation between Orebody 1/3 and Orebody 2. Results include 12m at 17.1g/t from 246m, 5m at 14.7g/t from 182m •Underground development continues to confirm continuity of high grade lodes and a series of oblique, high grade lodes discovered by underground development are now part of the mine plan and Mineral Resource •The extension is within close proximity to existing underground development •Potential remains to define further extensions to the south west within an untested area in excess of 300m in length close to existing development •An updated Mineral Resource estimate demonstrates an increase of over 50,000 oz so far, with a substantial portion of the deposit now upgraded to Measured Mineral Resource •Total 1.376m oz gold Resource is made up of approximately 314,000 oz Measured, 502,000 oz Indicated and 559,000 oz Inferred Celtic Resources Managing Director Kevin Foo commented," These orebody extensions and discoveries are important developments which may lead to significant resource increases at Suzdal. Furthermore, the updated JORC resourceto 5.2 Mt at 8.2g/t Au containing more than 1.37 Moz is encouraging as we now have more than 388,000 tonnes at 25 g/t Au in the measured category." For further information please contact: Kevin Foo / Jonathan Scott-Barrett Leesa PetersCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6666 / (0)781 215 9885Investors@celticresources.com leesa@conduitpr.com Frank Moxon / Simon EdwardsEvolution Securities LimitedTel: +44 (0) 20 7071 4300www.celticresources.com Extensions to Suzdal Resource Results from surface drilling at Suzdal have defined high grade extensions tomineralisation which have been included in a recent resource update. The holestargeted a poorly drilled portion of the project area adjacent to existingunderground workings. Summary The gold resource at Suzdal has been defined primarily by surface drillingcompleted by Kazakhstan government organisations prior to involvement by Celtic.The mineralisation was interpreted to comprise a series of parallel, shear zonehosted quartz-sulphide lodes carrying high grade gold. This interpretation wasconfirmed by open pit mining of the deposit. Subsequent underground development by Celtic has confirmed the initialinterpretation and has demonstrated that shoots of high grade gold in excess of20g/t Au are present over strike lengths of up to 300m. Extensive leveldevelopment has demonstrated the amenability of the deposit to undergroundmining, and the first panel of stoping was recently completed. In addition to the expected mineralisation, a series of oblique lodes has alsobeen intersected in underground development. These lodes appear to be splaysfrom the main structure and host high grade gold mineralisation over substantialstrike lengths. They are also amenable to underground mining methods currentlyused at Suzdal. The oblique (NNE trending) orientation of the lodes makes themdifficult to intersect from surface drilling. After review of the encouraging results from the underground development, Suzdalgeologists commenced a surface drilling program to test the poorly drilled areaimmediately north of the existing underground workings and lying between thewell defined Orebody 1/3 and Orebody 2 resources. Previous drilling had definedseveral small pods of mineralisation; however this recent drilling hasdemonstrated that these zones have much greater strike length than initiallythought. Importantly, they remain open to the south west where drilling iscontinuing. Underground development to Orebody 2 has now been completed on two levels and anextension to this development has commenced to better define the interveningmineralisation. Results from the recent drilling are summarised in Table 1. Table 1: Results from Recent Surface Drilling - Suzdal Gold Mine Hole Number From (m) To (m) Length (m) Au g/t 520 190 194 4 8.50 522 246 262 16 17.13 523 199 220 21 4.80 524 182 187 5 14.74 528 146 148 2 12.75 The intersections are from 5 holes on two cross sections with a spacing of 100m.No previous drilling is present in the 300m interval along strike to the southwest of holes 522 and 523 and a rig is currently operating at the site to testthis interval. In a developed and extensively drilled deposit such as Suzdal, the delineationof a substantial lode extension close to existing workings is exciting.Likewise, the recognition of high grade splays from the main structures providespotential additional high grade mineralisation close to the existing workings. A detailed review of all drilling at Suzdal is now being carried out to outlineother areas outside of the current resource with potential to host economicmineralisation. Drilling is continuing utilising surface and undergrounddrilling rigs. Suzdal Gold Mine Updated Resource Statement An updated independent resource estimate has been completed for the Suzdal Mine and has resulted in an increase of over 50,000 oz compared to the 2006 estimate.Importantly, the extensive underground development has confirmed the extent and continuity of the high grade mineralisation, allowing a substantial portion of the deposit to be classified as Measured Mineral Resource. The estimate is summarised in Table 2. Further details of the estimate are shown in Attachment 1. Table 2: Suzdal Mineral Resource Statement at 31 March 2007 (2.0g/t Cutoff Grade) Classification Tonnes Au Au Au kt g/t kg koz Measured 388 25.2 9,800 314 Indicated 2,340 6.7 15,600 502 Inferred 2,512 6.9 17,400 559Measured + Indicated 2,729 9.3 25,400 817 Total 5,240 8.2 42,800 1,376 Previous Estimate January 2006 4,940 8.3 41,140 1,324 Note: Celtic Resources policy is not to report any Russian "P" category resourcesas it believes that such classifications are open to very wide and often misleading interpretation. The estimate was completed by independent consultants Resource Evaluations Pty Ltd (ResEval) from Perth, Western Australia. The estimate was based on all drilling and underground sampling data available at the end of March 2007. Orebody interpretations were prepared by Celtic geologists and verified by ResEval during a number of site visits. Three dimensional wireframes were then prepared to represent the mineralised bodies. Grade estimation inside the wireframes was carried out using inverse distance squared (ID2) interpolation ofa Surpac block model. Open pit and underground survey information was used to exclude those portions of the deposit already extracted, therefore the resource statement represents the situation at the end of March 2007. 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. Attachment 1: Suzdal Resource Summary Mineral Resource Summary - Suzdal Gold Deposit Classification Tonnes Au Au Au kt g/t kg koz Measured 388 25.2 9,800 314 Indicated 2,340 6.7 15,600 502 Inferred 2,512 6.9 17,400 559Measured + Indicated 2,729 9.3 25,400 817 Total 5,240 8.2 42,800 1,376 The resource estimate was completed using the following parameters: • The Suzdal resource area extends over a strike length of approximately 2,560m and includes the 455m vertical interval from 325mRL to -130mRL. • Drill holes used in the resource estimate included 182 surface diamond holes for a total of 43,267m of drilling, as well as 45 underground diamond holes for 3,372m. In addition, 78 pit trenches (1,353m) and 556 underground channels (5,593m) were included in the estimate. • Surface holes were generally drilled at 50m x 50m and 100m x 50m throughout the deposit with some infill drilling on 30m lines down dip of Orebody 1. Pit trenches were included for each orebody and underground drilling and sampling data was restricted to Orebody 1/3. • Diamond drilling was variably sampled using geological boundaries to approximately 1m intervals in the main mineralised zones, with sampling widths ranging from 5m to 0.2m. Large portions of the core were unsampled and these zones have been assumed to be unmineralised. • Samples were generally assayed on site using aqua regia digest. All samples returning >5g/t were then assayed using the Fire Assay technique. Check assaying was routinely carried out and the site laboratory was accredited by Kazakh authorities. • Drill hole collars were accurately surveyed by site surveyors however some very old holes could not be verified. • Surface drill holes appear to have been down hole surveyed by a single-shot downhole camera. • Wireframes were constructed using cross sectional and plan interpretations based on a 2.0g/t Au cut-off grade with a minimum width of 2m. • Samples within the wireframes were composited to even 1.0m intervals. A high grade cut of 90g/t was applied to gold values based on statistical analysis. • A rotated (45degrees) Surpac block model was used for the estimate with a block size of 10m EW x 25m NS x 20m vertical with sub-cells of 1.25m x 3.125m x 2.5m. • ID2 grade interpolation used an oriented search ellipse based on individual lode geometry, with a first pass radius of 20m where close spaced sampling data was present or 60m for wide spaced drilling. A second pass radius of 120m was used. Greater than 95% of the blocks were filled in the first two passes. The radius was subsequently increased to 250m until all blocks were filled. An 'ellipsoid' search method was used. • A bulk density value of 2.70t/m3 was applied to Orebody 1/3 and Orebody 2. A density value of 2.78 was used for Orebody 4. Density data was based on extensive test work carried out on drill core. • The estimate was classified as Measured Mineral Resource for those portions of Orebody 1/3 defined by underground sampling data and was projected 5m from the level development. The Indicated Mineral Resource was those portions of the deposit defined by a substantial number of surface holes, where consistent geometry was interpreted. These were generally restricted to those lodes previously defined during open pit mining. Inferred Mineral Resource are either discontinuous zones, or those zones defined by wide spaced drilling where continuity of mineralisation could not be reasonably assumed. This information is provided by RNS The company news service from the London Stock Exchange