China Nonferr Regulatory News (CNG)

12 Apr 2006 13:04

Kryso Resources PLC12 April 2006 12 April 2006 KRYSO RESOURCES plc DRILLING REPORT Kryso Resources plc ("Kryso" or "the Company") is pleased to announce the firstset of drill results from its exploration diamond drill programme on its 100%owned Pakrut Gold Deposit ("Pakrut") located in the Republic of Tajikistan. Thedeposit is located within the 63sq.km Pakrut Licensed Area within which are theEastern Pakrut, Sulphidnoye and Rufigar prospects. During 2006, Kryso plans to complete its underground drilling programme forfurther evaluation of the Pakrut Gold Deposit and reporting using the guidelinesof the JORC Code. Previously the Soviets had evaluated the deposit and reportedthe tonnes and grade using the Soviet Resource Classification. Three surface holes (PKDD-1, PKDD-2 and PKDD-3) were completed by the end of2005. Subsequently, the Company was able to operate throughout the winter and todate has completed over 1,800m of drilling and over 270m of underground aditdevelopment. This has resulted in the redefinition of the mineralised zones anda better understanding of the structural and geological controls to themineralization. The style of the mineralization at Pakrut appears to beanalogous to other gold deposits found in the region. The three holes drilled from surface were targeted to intersect mineralizationon the edge of the ore zones, while the first series of holes drilled fromunderground were drilled to target the mineralization between the ore zones.Both the initial surface and underground drilling locations were selected toavoid any delay whilst waiting for underground development. As undergrounddevelopment continues, new drill stations will be established so that drillingcan concentrate on the main known ore zones. The Company currently has its twoOnram drill rigs underground and plans are underway to relocate its Longyear rigunderground. As there is difficulty in visually determining the ore zones in the drill core,the Company has set up its own sample preparation and atomic absorptionspectroscopy (AAS) laboratory in Dushanbe, the capital city. Here the entirecore from each hole is prepared and assayed. From these AAS results, theprepared core samples from the identified mineralised zones are currently beingmade ready for shipping to an internationally recognised laboratory where theywill be fire assayed. These assays will then be used for the grade model thatwill be prepared once the drill programme has been completed. The AAS method foranalysing gold is generally accepted as being one of the quickest, but wherecoarse gold is encountered, such as is present at Pakrut, it oftenunderestimates the gold content. To date, the AAS laboratory in Dushanbe hasanalysed over 1000 core samples for gold and silver. Kryso has engaged Snowden Mining Industry Consultants to complete a FeasibilityStudy of the Pakrut deposit and, in addition, a local consultant is currentlyworking on an Environmental Base Line Study of the area. During 2006 the Companyis planning to undertake an extensive surface-trenching programme along with there-sampling of the new and existing underground workings. All references to exploration results have been approved for release by TrevorDavenport, B.Sc, M.Sc, Ph.D, MIMM, C.Eng, Chairman of Kryso, who has more than30 years experience in the mining industry. He has consented to the inclusion ofthe material in the form and context in which it appears. For further information please contact: Kryso Resources plc. Dr. Trevor DavenportTelephone 01481 822972 Vassilios CarellasMobile 07970 756352 The mineralised intersections are listed below. Highlights include: 52.8m @ 1.99 g/t Au in Drillhole PKDD-18.5m @ 3.24 g/t Au in Drillhole PKDD-47.8m @ 6.46 g/t Au in Drillhole PKDD-620m @ 2.65 g/t Au in Drillhole PKDD-11 Mineralised Drillhole Intersections, Pakrut Gold Deposit (AAS analyses from Kryso Laboratory, Dushanbe) PKDD-1: 52.8m @ 1.99g/t Au from 0m (incl. 11.2m @ 4.81g/t Au from 6.8m)terminated in mineralization at 52.8m due to the ground conditions. PKDD-2: 76.1 m @ 0.90g/t Au from 27.4m (incl. 15m @ 1.53g/t Au from 48m and 16m@ 1.35g/t Au from 69m). Length of Hole - 108.5m. PKDD-3: 15.6m @ 1.67g/t Au from 23.5m (incl. 8.1m @ 2.83g/t Au from 31m) and 18m@ 1.25g/t Au from 86.5m (incl. 6.4m @ 1.76g/t Au from 92.1m). Length of Hole -137.5m. PKDD-4: 4.5m @ 2.55g/t Au from 29.5m (incl. 3m @ 3.6g/t from 29.5) and 8.5m @3.24g/t Au from 62.5m (incl. 4.5m @ 5.83g/t Au from 64m). Length of Hole -80.5m. PKDD-5: 12m @ 1.27g/t Au from 28m (incl. 3m @ 3.62g/t Au from 37m). Length ofHole -100m. PKDD-6: 3m @ 1.02g/t Au from 43m and 7.8m @ 6.46g/t Au from 54m (incl. 2.8m @15.42g/t Au from 59m). Length of Hole - 85m. PKDD-7: 1m @ 3.76g/t from 61m and 2m @1.96g/t from 77m. Length of Hole - 85m. PKDD-8: 1m @ 5.63g/t from 12m and 1m @2.20g/t from 36m. Length of Hole - 89m. PKDD-9: 16.5m @ 0.96g/t Au (incl. 3.5m @ 1.14g/t Au from 56.5m and 6m @ 1.57g/tAu from 63m) terminated in mineralization at 69m due to the ground conditions. PKDD-10: 4m @ 1.99g/t Au. Length of Hole - 82m. PKDD-11: 20m @ 2.65g/t Au (incl. 10m @ 4.4g/t Au from 45m, or 4.5m @ 7.12g/t Aufrom 50.5m). Length of Hole - 71.5m. PKDD-12: 3m @ 5.81 g/t Au from 18m (incl. 2m 8.38 g/t Au from 18m). Length ofHole - 62.5m. This information is provided by RNS The company news service from the London Stock Exchange