China Nonferr Regulatory News (CNG)

22 Mar 2011 07:00

Kryso Resources plc

('Kryso' or the 'Company')

Positive Drilling Results from the Pakrut Gold Deposit

Kryso Resources plc (AIM:KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to report highly encouraging assay results from drilling completed during 2010 at its Pakrut gold deposit.

Highlights of drill hole intersections:

Ore Zone 1: 21m (\* TW-15.3m) at 7.28 g/t, 24m (TW-17.98m) at 5.39 g/t and 16.5m (TW-12.36m) at 5.57 g/t Au Ore Zone 2: 30m (TW-22.62m) at 4.37 g/t and 42.9m (TW-32.89m)at 2.57 g/t Au Ore Zone 3: 16.5m (TW-13.28m) at 4.48 g/t and 6m (TW-4.92m) at 6.58 g/t Au Ore Zone 6: 4.5m (TW-3.44m) at 18.2 g/t Updated resource estimate will be released in Q2 2011 Confirmation that Eastern Pakrut surface mineralisation continues at depth

\* TW - True width / true thickness of ore zone

The main objectives of the 2010 drill diamond drill programme, which was carried out between May and December, were to improve the definition of the Pakrut resources and verify their continuation at depth. The results confirm that mineralisation is continuing at depth and is consistent with the known shape of the ore zones. Infill drilling has shown all of the ore zones at Pakrut to have continuity of thickness and grade consistent with previous drilling results. The ore zones are mostly confined to the metasomatite. Often the green schist host rock does carry gold grades close to the contact with the metasomatite.

Ore Zone 1, which from previous drilling indicated a strike length of approximately 100m from west to east, after which the grades began to decrease to the east, is now found to be continuing at deeper levels (below 200m below adit level). In addition, the drilling undertaken during 2010 has indicated that the grade and thickness of Ore Zone 1 is increasing at depth towards the east.

The drilling results also indicate that Ore Zones 2 and 3 are continuing at intermediate and deeper levels. Ore Zone 6 - a smaller, mineralised zone on the north side of the river and currently not included in mining plan - is often the first zone intersected during the drilling of the main ore zones; it too continues to show interesting grades.

An additional objective of the 2010 drill programme was to further investigate mineralisation at Eastern Pakrut. Two initial drill holes were completed at Eastern Pakrut in 2010, and they confirm that the mineralisation on surface continues at depth.

The 2010 results were received from the Intertek Group in Beijing, China, an independent assay laboratory appointed by Kryso.

Kryso intends to report an updated resource estimate to the market in the second quarter of 2011.

The total metres drilled in 2010 was 6,967m and the total drilled by Kryso since 2005 is 27,250m.

All drilling in 2010 used diamond drilling apart from one RC hole completed at the end of 2009. There were 16 diamond drill holes completed in 2010 and two others started but not completed by closedown in December. Significant intercepts were obtained from 15 of the 16 completed holes drilled during the year. Drill hole 139 into Ore Zone 2 intercepted minor mineralisation.

Craig Brown, Managing Director of Kryso, commented: "We are delighted to report these outstanding drilling results, which demonstrate the huge potential for expanding the resource at Pakrut. We are especially encouraged by the indicated resources of the lower eastward extension of Ore Zone 1 and by the consistency of thickness and grade with previous drilling results from all of the Pakrut ore zones. The results further support our belief that Pakrut can develop into a significant underground gold mining operation and give us renewed confidence for the future."

Table 1: Pakrut Mineralised Intersections

BHID		From (m)		To (m)		Interval (m)		True widths (m)		Grade (g/t Au)		Northings		Eastings		Azimuth		Dip
Ore Zone 1
PKDD95		330,3		346,8		16,5		12,36		5,57		71194,16		63063,18		180		55
PKDD95		351,3		352,8		1,5		1,21		2,73		71194,16		63063,18		180		55
PKDD123		332,3		362,3		30,0		22,50		3,20		71288,09		63035,59		180		56
PKDD123		366,8		368,3		1,5		1,19		4,99		71288,09		63035,59		180		56
PKDD123		383,3		386,3		3,0		2,25		4,37		71288,09		63035,59		180		56
PKDD123		389,3		399,8		10,5		7,88		2,10		71288,09		63035,59		180		56
PKDD125		460,2		484,2		24,0		17,98		5,39		71288,09		63035,59		180		56
PKDD125		490,2		491,7		1,5		1,21		2,85		71288,09		63035,59		180		56
PKDD125		497,7		502,2		4,5		3,38		2,22		71288,09		63035,59		180		56
PKDD125		497,7		503,7		6,0		4,50		2,73		71288,09		63035,59		180		56
PKDD125		520,2		524,2		4,0		3,00		3,41		71288,09		63035,59		180		56
PKDD126		295,5		306,5		11,0		8,59		2,73		71233,69		63040,15		180		57
PKDD127		348,0		369,0		21,0		15,30		7,28		71233,69		63040,15		180		57
PKDD127		408,0		411,0		3,0		2,12		3,55		71233,69		63040,15		180		57
PKDD127		418,5		420,0		1,5		1,08		2,46		71233,69		63040,15		180		57
PKDD136		254,7		274,2		19,5		16,93		4,37		71348,94		62919,04		176		62
PKDD136		293,7		295,2		1,5		1,27		3,58		71348,94		62919,04		176		62
PKDD138		510,7		524,2		13,5		10,35		3,69		71340,01		62993,98		171		68
Ore Zone 2
PKDD124		10,0		13,0		3,0		2,89		2,52		70983,39		62999,84		73		41
PKDD124		62,5		73,0		10,5		10,00		1,54		70983,39		62999,84		73		41
PKDD124		98,5		103,0		4,5		4,35		1,83		70983,39		62999,84		73		41
PKDD129		196,2		202,2		6,0		4,58		3,00		71249,89		62962,69		250		40
PKDD129		214,2		215,7		1,5		1,15		2,83		71249,89		62962,69		250		40
PKDD130		349,4		350,9		1,5		1,17		4,95		71320,23		62931,68		250		64
PKDD130		367,4		385,4		18,0		13,50		3,75		71320,23		62931,68		250		64
PKDD130		407,9		419,9		12,0		9,04		2,56		71320,23		62931,68		250		64
PKDD132		263,8		293,8		30,0		22,62		4,37		71250,11		62962,89		250		60
PKDD132		300,8		301,95		1,15		0,87		3,14		71250,11		62962,89		250		60
PKDD133		445,4		446,9		1,5		1,13		2,71		71320,58		62931,78		250		74
PKDD134		290,6		333,5		42,9		32,89		2,57		71264,61		63018,42		250		60
Ore Zone 3
PKDD95		145,0		148,0		3,0		2,25		3,74		71194,16		63063,18		180		55
PKDD123		213,8		215,3		1,5		1,14		0,60		71288,09		63035,59		180		56
PKDD124		136,5		143,5		7,0		6,78		2,30		70983,39		62999,84		73		41
PKDD124		161,5		167,5		6,0		5,81		3,27		70983,39		62999,84		73		41
PKDD125		254,7		256,2		1,5		1,13		1,93		71288,09		63035,59		180		56
PKDD126		138,5		143,0		4,5		3,42		1,36		71233,69		63040,15		180		57
PKDD127		165		169,5		4,5		3,38		3,48		71233,69		63040,15		180		57
PKDD129		85,2		88,2		3,0		2,42		2,75		71249,89		62962,69		250		40
PKDD130		16,4		32,9		16,5		13,28		4,48		71320,23		62931,68		250		64
PKDD130		58,4		68,9		10,5		8,46		3,20		71320,23		62931,68		250		64
PKDD132		100,4		106,4		6,0		4,92		6,58		71250,11		62962,89		250		60
PKDD133		19,4		35,9		16,5		12,95		3,82		71320,58		62931,78		250		74
PKDD134		235,1		236,6		1,5		1,15		5,73		71264,61		63018,42		250		60
PKDD134		253,1		254,6		1,5		1,15		3,60		71264,61		63018,42		250		60
PKDD136		189,7		190,7		1,0		0,92		4,89		71348,94		62919,04		176		62
PKDD136		202,2		203,7		1,5		1,21		1,30		71348,94		62919,04		176		62
PKDD139		172,2		185,7		13,5		10,35		1,67		71191,43		63062,52		250		65
Ore Zone 6
PKRC117		203,6		207,4		3,8		2,98		8,00		71402,64		62976,11		360		65
PKDD123		21,8		24,8		3,0		2,35		1,81		71288,09		63035,59		180		56
PKDD123		53,3		57,8		4,5		3,44		18,20		71288,09		63035,59		180		56
PKDD125		25,2		26,7		1,5		1,15		1,02		71288,09		63035,59		180		56
PKDD125		35,7		38,7		3,0		2,36		1,54		71288,09		63035,59		180		56
PKDD125		41,7		43,2		1,5		1,18		1,41		71288,09		63035,59		180		56
PKDD127		36,3		37,5		1,2		0,90		1,50		71233,69		63040,15		180		57
PKDD138		2,70		5,70		3,0		2,42		4,53		71340,01		62993,98		171		68
Eastern Pakrut
Ore Zone 14
EPKDD111		214		221,5		7,5		3,62		2,66		73930,19		62830,98		205		85
EPKDD111		226,0		229,0		3,0		1,45		1,00		73930,19		62830,98		205		85
EPKDD113		75		82,5		7,5		3,85		2,44		73998,86		62779,29		25		85

Table 2: Drill Hole Depths

BHID			Total Depth
Pakrut
PKDD95			432.3m
PKDD123			425.3m
PKDD124			178.0m
PKDD125			560.7m
PKDD126			377.5m
PKDD127			447.0m
PKDD129:			280.2m
PKDD130:			437.9m
PKDD132:			340.3m
PKDD134:			360.5m
PKDD136:			328.2m
PKDD138:			548.2m
PKRC-117:			218.6m
Eastern Pakrut
EPKD111:			250m
EPKD113:			138m

For further information please visit the Company's website (www.kryso.com) or contact:

Dr. Trevor Davenport/Craig Brown, Kryso Resources plc

Tel: +44 (0) 20 7371 0600

Katy Mitchell, WH Ireland Limited

Tel: +44 (0) 161 832 2174

Christian Dennis, Optiva Securities

Tel: +44 (0) 203 137 1903

About the Pakrut Gold Project

The Pakrut gold project, of which Kryso has 100% ownership, is situated in Tajikistan approximately 112km northeast of the capital city Dushanbe. Pakrut has total JORC Code-compliant gold resources of approximately 3 million ounces (assuming a cut-off grade of 0g/t Au) and is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and western China, and which hosts a number of multi-million ounce gold deposits.

Drilling at Pakrut has previously returned numerous exciting intersections, including 123.7m at 6.1g/t Au, 42m at 11.2g/t Au and 50m at 5.7g/t Au.

About Tajikistan

Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States (CIS) and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. Kryso's management team has extensive experience in the mining industry in Tajikistan.

Qualified Person

All geological results have been approved for release by Dr Trevor Davenport B.Sc, M.Sc, Ph.D, MIMM, C.Eng, Non-Executive Director of Kryso Resources plc. Dr Davenport has more than 35 years of experience in the mining industry and has consented to the inclusion of the material in the form and context in which it appears.

Glossary

Au: The chemical symbol for gold.

Cut-off grade: The grade used to separate ore and waste such that only material classified as ore will be treated in order to recover the economic metal or mineral of interest.

g/t: grams per tonne.

JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

m: metre.

oz: troy ounce.

Resource: An estimated tonnage and grade of mineralization in the ground.

t: metric ton.

Copyright Business Wire 2011