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22 Dec 2008 10:30
22 December 2008 Kryso Resources plc (`Kryso', `Kryso Resources' or `the Company') AIM: KYS Pakrut Gold Project - Reserves & Resources Approved by Tajik Government * Pakrut reserves and resources approved by Tajik State Committee for Reserves * Total reserves and resources at Pakrut under Russian classification system increased to 2,055,047oz of gold * Recent drilling confirms Pakrut deposit still open at depth * Kryso has received several proposals for the financing and development of Pakrut
Kryso Resources plc, the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that the State Committee for Reserves (GKZ) of the Republic of Tajikistan approved the reserves and resources of the Company's 100% controlled Pakrut gold deposit on 15 December 2008.
The Pakrut reserves and resources have been approved on the basis of cut-off grades of 0.5 grams per tonne gold (g/t), 1.0g/t, and 1.5g/t.
Using a 0.5g/t cut-off grade, the approved C1+C2+P1 gold resource is 2,055,047oz at an average grade of 2.44g/t, which includes an approved C1+C2 reserve of 1,257,454oz at an average grade of 2.62g/t.
If a 1.5g/t cut-off is used, the approved C1+C2+P1 resource is 1,664,212.7oz at an average grade of 3.98g/t, while the approved C1+C2 reserve is 1,036,479oz at an average grade of 3.99g/t.
Tajikistan uses the Russian classification system for reserves and resources which differs from the JORC Code. The Russian C1, C2 and P1 categories can respectively be considered broadly similar to the JORC proved or probable reserve, indicated resource and inferred resource categories.
A full schedule of the Pakrut reserves and resources under the Russian classification system is provided below.
Earlier this year the Tajik State Committee for Geology approved the resources of the Pakrut gold deposit. Kryso has since completed a local feasibility study for Pakrut, which was required for the approval of the C1 and C2 reserves by the State Committee for Reserves. The local feasibility study included a mining plan, proposed mining method, plant design, and both capital and operating costs for the project. This study was prepared by independent consultants in conjunction with Kryso's own specialist personnel.
The total JORC compliant resource for Pakrut is currently 1,739,029oz at an average grade of 2.53 g/t, using a 0.5 g/t cut-off. Some 1,167,789oz of this total is in the measured and indicated categories. This estimate was calculated by Geologix, Kryso's independent geological consultants, in September 2008. The JORC compliant resource at Pakrut is expected to increase based on recent drilling results.
Recent drilling at Pakrut, assays for which will be reported over the coming months, confirms that the deposit remains open at depth, and future drilling is very likely to result in the definition of additional reserves and resources.
Much of the necessary work has been completed to finalise the bankable feasibility study for Pakrut, and the Company expects the study to be completed during 2009.
Several proposals for the financing of the Pakrut project have been presented to the Company. These are currently being considered and the Company expects to make further announcements in due course.
Vassilios Carellas, Managing Director of Kryso Resources, comments:
`We are very pleased to have our reserves and resources approved by the State Committee for Reserves. This is an important step in the overall process of bringing the Pakrut gold project into production.
That the Russian classified reserves and resources for Pakrut now exceed 2 million ounces is indicative of the increase we expect to achieve in our next JORC compliant resource update.
It is also pleasing to have received a number of approaches relating to thePakrut project, and we will advise the market of any developments on thisfront.' PAKRUT GOLD PROJECT RESERVES AND RESOURCES At a 0.5 gram cut-off Category Tons Grade (g/t) Ounces C1 8,392,540.6 3.00 810,687.5 C2 6,518,207.2 2.13 446,766.8 Total Reserves 14,910,747.8 2.62 1,257,454.3 P1 11,300,747.5 2.20 797,592.5 Total Resource 26,211,495.3 2.44 2,055,046.8 At a 1.0 gram cut-off Category Tons Grade (g/t) Ounces C1 6,637,473.1 3.59 765,313.2 C2 4,071,465.6 2.71 354,513.4 Total Reserves 10,708,938.7 3.25 1,119,826.6 P1 6,870,142.0 3.03 669,976.5 Total Resource 17,579,080.7 3.17 1,789,803.1 At a 1.5 gram cut-off Category Tons Grade (g/t) Ounces C1 5,028,935.1 4.41 713,663.0 C2 3,046,377.5 3.30 322,816.0 Total Reserves 8,075,312.6 3.99 1,036,479.0 P1 4,934,580.6 3.96 627,733.7 Total Resource 13,009,893.2 3.98 1,664,212.7
For further information, please contact:
Vassilios Carellas / Dr. Trevor Davenport, 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
Christian Dennis, Orbis Equity Partners Limited.
Tel: 020 3178 3977
Background Information on Kryso Resources plc
Kryso Resources controls 100% of the exploration rights to the Pakrut gold project, which lies within the highly prospective Tien-Shan gold belt. Kryso also controls 100% of the exploration rights to the Hukas nickel-copper project.
Kryso is managed by a team with a proven track record of working in Tajikistan, which the Company considers to be among the most attractive operating environments in Central Asia.
The main deposit at Pakrut currently hosts a JORC compliant resource in excess of 1.7 million oz of gold and the Company aims to increase this significantly over time.
Drilling at Pakrut continues to return exciting intersections, including 123.7m @ 6.14g/t gold, 42m @ 11.17g/t gold and 50m @ 5.67g/t gold.
The Company envisages gold production at Pakrut of 100,000 oz per annum from a combined open pit and underground mine, commencing in 2010.
A geophysical survey over a large section of the Hukas nickel-copper project has been completed, and a drill programme began in 2008.
All assay results reported are independently assayed by SGS Lakefield in South Africa. The procedures used in sampling, logging core, and sample preparation were audited by Snowden Mining Consultants in 2006. A quality control system is in place whereby control samples are included with samples sent to SGS Lakefield.
Mr Vassilios Carellas (MAusIMM) is a full time employee of Kryso Resources plc and provided geological interpretations and the drillhole and trench database for Mineral Resource estimation. Mr Carellas has sufficient experience relevant to the style of mineralization 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.
Glossary of terms
Grade g/t - grams per tonne
JORC Code - Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Russian resource classification system - a system used in Russia and most Former Soviet Union countries for calculating ore reserves and resources.
C1 - Russian resource classification system reserve category which is broadly similar to proved or probable reserve category under the JORC Code.
C2 - Russian resource classification system reserve category which is broadly similar to indicated resource under JORC Code.
P1 - Russian resource classification system resource category which is broadly similar to inferred resource under the JORC Code.
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