Last checked at 31 Mar 2010 13:14
Kryso Resources plc (`Kryso' or `the Company') Pakrut Bankable Feasibility Study Update
Kryso Resources plc (AIM: KYS), the gold exploration and development company that is advancing its 2.8 million ounce Pakrut gold project in Tajikistan through a bankable feasibility study (BFS), is pleased to provide a progress update.
On the basis of the grade and extent of near surface mineralisation, the management and consultants of Kryso originally intended the Pakrut gold project to be developed as an open pit mine, with underground development to follow at a later stage. It was on this premise that the BFS was initially prepared by the Beijing General Research Institute of Mining & Metallurgy (BGRIMM), the consulting group appointed by Kryso to complete the study.
However, deeper level drilling of Ore Zone 1 (results announced on 3 June and 18 September 2009 with further results to be announced shortly) has demonstrated that Ore Zone 1 widens significantly at depth. This presents an opportunity for the development of an underground mining operation from the outset, with either decline or shaft access. Ore Zone 1 is the largest ore zone identified at Pakrut to date and remains open at depth-.
It is anticipated that an underground approach would deliver superior economics relative to a combination of open pit and underground mining and would also enable the early exploitation of higher grade ore found at depth, with lower grade near surface ore blended in as required to produce optimal feed for the mill.
The underground mining approach has been adopted by BGRIMM with the further rationale that the major ore zones at Pakrut are vertical in orientation, the surrounding terrain is mountainous and the area of level ground available for surface facilities is relatively limited.
To facilitate the planning and design of an underground mine, which requires additional information to that required for an open pit mine, Kryso staff and consultants have been working on the development of an updated wire-frame model of the Pakrut deposit using a 2g/t Au cut-off grade. This model, which forms part of the BFS, will include all offshore assays from 2009 drilling at Pakrut and is expected to be completed during Q2 2010.
The remainder of the BFS is approximately 80% complete. BGRIMM are currently finalising capital and operating cost estimates, having recently completed all metallurgical test work and process plant and infrastructure design.
The completed and revised BFS is now expected to be available at the end of Q2 2010, following finalisation of the mine plan and financial model.
Dr Trevor Davenport, Non-Executive Chairman and interim Managing Director of Kryso, comments:
`The reorientation of the Pakrut BFS around an underground mine is an essential step towards getting the best out of the Pakrut gold project and the delivery of an optimal mining case is a key precursor to securing financing for the project.'
About the Pakrut Gold Project
The Pakrut gold project, of which Kryso has 100% ownership, is situated in Tajikistan approximately 112 km northeast of the capital city Dushanbe.
Pakrut has total JORC Code-compliant gold resources of approximately 2.8 million ounces (assuming a cut-off grade of 0.5g/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. Kryso undertakes offshore assaying of its drill samples at the SGS Group laboratory in Johannesburg, South Africa.
A bankable feasibility study (BFS) for the Pakrut project is currently being undertaken by the Beijing General Research Institute of Mining & Metallurgy (BGRIMM).
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.
All geological results have been approved for release by Dr Trevor Davenport B.Sc, M.Sc, Ph.D, MIMM, C.Eng, Non-Executive Chairman and acting Managing 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.
Bankable feasibility study: A study of the economic viability of the mining and production of base or precious metals or other minerals in such form and containing such detail as is customarily required by a bank or other financial institution engaged in mining project finance to enable it to determine whether to finance the development of a commercial mining operation.
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.
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, Orbis Equity Partners Limited
Tel: +44 (0) 20 3137 1902
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