CNG.L Regulatory News (CNG)

8 Sep 2005 12:55

Kryso Resources PLC08 September 2005 8 September 2005 KRYSO RESOURCES plc PROGRESS REPORT Vassilios Carellas, Managing Director is pleased to announce that drilling hascommenced at the Pakrut Gold Deposit in Tajikistan. Drilling: Pakrut - One Hagby Onram 1000/3 drill rig ("Onram") has started drilling thefirst of two surface drill holes. The Longyear 38 drill is also on site in thePakrut Licence Area. The bulk of the drilling at Pakrut will be carried out fromunderground to allow for all year round drilling. The second Onram drill will betransferred to site shortly to further the underground drilling programme. Sulphidnoye - The Longyear 38 surface drill will be used to first drill a waterborehole for the camp to ensure a constant potable water supply, then the drillrig will be used to start exploration drilling at the Sulphidnoye prospect.Access has been re-established to Sulphidnoye prospect and drill pads are beingprepared. The initial part of the drill programme is designed to get a betterunderstanding of the geology of the prospect. Pakrut Camp: Secure storage facilities, and diesel and generator compounds are nowestablished on site. For storage and accommodation, 40-foot containers have beentransported to the camp and are currently being converted and winterised.A secure explosive store has been constructed and permission has been receivedto utilise, transport and store explosives; the compound will be guarded 24hours a day by police guards. Pakrut Underground Mine: The portal and access to 750m of the original Russian No. 1 adit has beenre-established and re-lined; the adit, closed for 25 years, is in remarkablygood condition. A second access entrance has been cleared for ventilation andsafety purposes. The bulk of the drilling will be carried out from this adit andits crosscuts. Laboratory: Most of the sample preparation equipment has now arrived in Dushanbe and isstored in the adjacent large holding store. The Atomic AbsorptionSpectrophotometer laboratory is complete and the instrument has been tested by aPerkin Elmer engineer. The adjacent sample digestion and the sample preparationlaboratories are nearing completion. Holding Store/Core Shed: Part of the 800m(2) holding store will be used for storage of drill core androck samples after all the remaining equipment has been transferred to site. General: The company now employs over 100 local staff including geological, drilling,mining, laboratory, stores and administration personnel; it has also moved to alarger office in Dushanbe. The total local salary cost per month is less thanUS$20,000. Feasibility Study: A firm of local environmental consultants has been appointed and have commencedwork to complete an environmental impact study for the feasibility study of thePakrut Gold Deposit. Key personnel from this company LLC "Ziderer" have obtainedtheir qualification in the United States and have previously completedenvironmental assessments for the United Nations and the World Bank inTajikistan. Three consultants from "Snowden Mining Industry Consultants" are arriving inDushanbe in mid-September as part of the on-going Feasibility Study. One is aresource geologist, who visited last year; the second, an environmentalscientist, who will set up the procedures for the environmental study; the thirdis a mining engineer and will be concerned with geotechnical aspects such asrock conditions during mining, and the establishment of a tailings dam. Contacts: Kryso Resources plcVassilios Carellas / Craig BrownTelephone: 020 7371 0600Mobile 07970 756352 / 07947 464188 Ruegg & Co LtdBrett MillerTelephone: 020 7584 3663 Hichens HarrisonChristian DennisTelephone: 020 7382 4473 This information is provided by RNS The company news service from the London Stock Exchange