Last checked at 19 Mar 2007 07:00
Kryso Resources plc (`Kryso' or `the Company') Pakrut Gold Project - JORC Resource Achieved
- 596,500 ounce JORC-compliant resource defined at Pakrut
- Mineralization still open in three directions
- Company believes sufficient resources delineated to underpin an open pit feasibility study
- Drilling continues with the intention of defining a larger underground resource
Kryso Resources plc, the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce an initial JORC-compliant resource estimate for its 100% owned Pakrut gold project (`Pakrut') located in the prolific Tien Shan Fold Belt in the Republic of Tajikistan.
This estimate was compiled principally using data obtained from Kryso's diamond drilling programme and was generated by the Company's independent consultant, Snowden Mining Industry Consultants (`Snowden').
The initial JORC-compliant resource for the main deposit at Pakrut has been estimated to contain approximately 596,500 ounces of gold and is categorised in accordance with the 2004 JORC Code with a 0.5 g/t gold cut-off grade as follows:
- 2.4 Mt grading 2.1 g/t gold Measured Mineral Resource
- 2.4 Mt grading 1.8 g/t gold Indicated Mineral Resource
- 5.3 Mt grading 1.7 g/t gold Inferred Mineral Resource
- Total JORC Resource - 10.1 Mt grading 1.84 g/t gold
The bulk of the measured and indicated resource is from the lower grade Ore Zone 2, which was targeted first due to its close proximity to the surface and to allow the initial definition of an open pit resource. The mineralization is still open at depth, as well as to the east and to the north.
This initial resource estimate will form the basis of the feasibility study currently underway for the open pit resource; this envisages an operation with a relatively low stripping ratio producing between 200,000 and 300,000 ounces of gold over the life of the pit.
The resource estimate relies largely on diamond drill samples that have been fire assayed at the internationally accredited SGS laboratory in South Africa.
The latest drilling at Pakrut, which is targeting areas below the adit level in Ore Zone 1 in the previously reported bow-shaped mineralised zone, has indicated that both the width and grade of the ore body are increasing with depth. This could have a significant positive impact on the overall economics of the project, especially once sufficient resources have been delineated to model an underground mine option.
Further announcements will be made once additional resource and future reserve studies are completed.
Kryso Resources' Managing Director, Vassilios Carellas comments:
'This is a significant milestone for Kryso in the process of realising its ambition to become a producer. The initial JORC-compliant resource statement for the Pakrut gold deposit will underpin the ongoing feasibility study, which is expected to be finished around the middle of the year. Continuing drilling operations are targeting the main Pakrut deposit's potential underground resource, and we look forward to announcing the results from these operations when available.
It is evident that Kryso's drilling programme is successfully improving the level of confidence in the historic Soviet resource estimate for the Pakrut deposit of in excess of 1 million ounces, and one of the company's main objectives is to bring the remaining Soviet resources into compliance with the JORC code.'
All exploration results have been approved for release by Dr Trevor Davenport, B.Sc, M.Sc, Ph.D, MIMM, C.Eng, and Chairman of Kryso. Trevor has more than 30 years experience in the exploration and mining industry and has consented to the inclusion of the material in the form and context in which it appears.
For further information, please contact:
Vassilios Carellas/Craig Brown, Kryso Resources plc.
Tel: 020 7371 0600Brett Miller, Ruegg & Co Ltd.Tel: 020 7584 3663
Richard Hail, Fox-Davies Capital Limited.
Tel: 020 7936 5200
Stephen Clayson/Ron Marshman/John Greenhalgh, City of London PR Limited.
Tel: 020 7628 5518
Glossary of technical terms
JORC Code - The Australian Code for Reporting of Mineral Reserves and ore Reserves issued by the Joint Ore Reserves Committee.
Fire assay - The assaying of metallic ores by methods requiring high temperatures.
Grade (g/t) - Grams per tonne, the unit measurement of grade.
Report from Snowden Mining Industry Consultants PTY LTD
Pakrut February 2007 Resource Estimate
Snowden has completed a Mineral Resource estimate for the Pakrut resource. The Mineral Resource has been tabulated above block model cut-offs of 0.5 g/t Au, 1.0 g/t Au and 2.0 g/t Au in the table below. At a gold cut-off of 0.5 g/t the total Mineral Resource is 10.1 Mt averaging 1.84 g/t Au. This total includes 2.4 Mt of Measured Mineral Resources at an average grade of 2.11 g/t Au.
The resource has been classified as Measured, Indicated and Inferred categories according to the 2004 JORC Code and is based on the mineralisation interpretations and data supplied by Kryso Resources plc (`Kryso') on the 15th February 2007. The data used for the resource estimation is comprised of diamond drilling and surficial trenching. Snowden has reviewed the drilling and sampling data underlying the resource estimate, and, following suitable adjustments, can verify that the data is of sufficient quality to support the resource classifications applied. Snowden also completed a site visit to review the mineralisation and data collection processes.
Ordinary block kriging was used to estimate gold grade into a constrained block model reflecting the interpreted geology. Where appropriate, grade capping was applied prior to estimation. Search ellipses and ranges used in the estimation reflect the spatial continuity and the mineralisation trends of each of the three mineralised domains. Kriging neighbourhood analysis was undertaken to optimise the estimation parameters in order to minimise conditional bias in the estimate. The trench data was used to estimate only the first 10 m below the topographic surface of the deposit and all remaining areas were estimated using diamond drilling only.
Snowden has based the resource classification upon a number of criteria, including the geological confidence, the integrity of the data, the spatial continuity of the mineralisation as demonstrated by variography, and the quality of the estimation. The parts of the resource that were estimated from 30 mE by 30 mN drilling that have fire assayed samples have been classified as Measured Resources. The parts of the resource model that were estimated from drilling greater than 30 mE by 30 mN but less than a nominal 70 mE by 70 mN have been classified as Indicated Resources. All other areas of the resource have been classified as Inferred Resources.
An average in situ density of 2.57 t/m3 has been applied to the oxide zone of the mineralisation and 2.62 t/m3 has been applied to the fresh zones of the mineralisation. The in situ density values reflect the average value of the determinations made from the diamond core collected by Kryso.
Pakrut February 2007 Resource Summary
Cut-off Tonnes Au(Au g/t) (1000's) (g/t)Measured0.5 2,371 2.111.0 2,134 2.252.0 978 3.17Indicated0.5 2,403 1.801.0 1,962 2.022.0 728 2.97Inferred0.5 5,311 1.731.0 4,462 1.902.0 1,269 3.03Total0.5 10,085 1.841.0 8,558 2.012.0 2,975 3.06Competent Persons
The information in the report to which the statement is attached that relates to Mineral Resources is based on information compiled by Ms Michelle Franks and Mr Vassilios Carellas who are both Members of The Australasian Institute of Mining and Metallurgy.
Ms Michelle Franks (MAusIMM) is employed by Snowden Mining Industry Consultants and produced the resource estimate based upon the interpretations provided by Kryso. Ms Franks has sufficient experience which is relevant to the type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms Franks consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.
Mr Vassilios Carellas (MAusIMM) is a full time employee of Kryso Resources plc and provided geological interpretations and the drill hole and trench database for Mineral Resource estimation. Mr Carellas has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Carellas consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
KRYSO RESOURCES PLC