Last checked at 3 Jul 2009 12:20
3 July 2009 Kryso Resources plc ('Kryso' or 'the Company') Result of AGM and AGM Statement Result of AGM At the Annual General Meeting (AGM) of the Company held today, all resolutionsproposed were duly passed. AGM Statement
At the AGM, Dr. Trevor Davenport, Non-Executive Chairman and acting Managing Director, made the following comments:
'The Pakrut gold project continues to reward Kryso's efforts to define new resources, as illustrated by this week's announcement of new JORC Code-compliant resources of 245,243oz Au in Ore Zones 5, 6, 7, 14 and 16. This means that total JORC Code-compliant resources at Pakrut now stand at 1,984,272oz Au.
Kryso intends to complete an updated overall estimate of the Pakrut project's JORC Code-compliant resources within approximately six weeks. This will incorporate the results of additional drilling and is expected to result in a substantial further increase in the total JORC Code-compliant resources of the project.
Drilling is ongoing at Pakrut, and is presently focusing on the lower levels of Ore Zone 1 and on Ore Zones 5 and 6. Kryso has three diamond drill rigs and one RC (reverse circulation) rig at the project.
At the same time, work continues on the Pakrut project bankable feasibility study (BFS), which is targeted for completion before the end of the year. The BFS will be based on a mining operation producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au. Kryso expects to produce first gold from Pakrut in 2011.
From a financing standpoint, Kryso benefits from the Equity Placing Agreement ('EPA') that is in place with its co-broker Orbis Equity Partners Limited ('Orbis'). The terms of the EPA allow Kryso to raise gross proceeds of up to £ 1.5 million with minimum gross proceeds of £500,000. New ordinary shares subscribed for under the EPA are priced at 5p per share, and warrants exercisable at 8p per share are granted to subscribers on the basis of one warrant for each new ordinary share subscribed for. The issue of £250,000 worth of new ordinary shares under the EPA was announced on 8 June.
In addition, the loan of £500,000 made to Kryso in April 2008 by Great Basin Gold Limited ('Great Basin'), plus interest due up to 31 May 2009 of £ 36,169.47, will now convert into new ordinary shares in Kryso at 5p per share. Great Basin will be issued with warrants exercisable at 8p per share on the basis of one warrant for each new ordinary share issued pursuant to the loan conversion.'
About the Pakrut Gold Project
The Pakrut gold project's total JORC Code-compliant resources comprise: resources of 21,383,902t estimated across Ore Zones 1, 2, 3 and 7 at an average grade of 2.53g/t for 1,739,029oz Au, assuming a cut-off grade of 0.5g/t; and resources of 5,015,285t estimated across Ore Zones 5, 6, 7, 14 and 16 at an average grade of 1.52g/t for 245,243oz Au, assuming a cut-off grade of 0.5g/t. Total contained gold is 1,984,272oz Au.
Total JORC Code-compliant resources of 13,412,109t at an average grade of 2.71g /t for 1,167,789oz Au, assuming a cut off grade of 0.5g/t, fall into the JORC Measured and Indicated categories.
The total resources of the Pakrut gold project under the Russian classification system stand at 26,211,495t at an average grade of 2.44g/t for 2,055,047oz Au, assuming a cut-off grade of 0.5g/t. This includes total reserves of 14,910,748t at an average grade of 2.65g/t for 1,257,454oz Au, assuming a cut-off grade of 0.5g/t.
A bankable feasibility study for the Pakrut project based on a mining operation producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au is currently in progress, and is targeted for completion before the end of 2009. First gold production at Pakrut is targeted for 2011. An internal pre-feasibility study was completed in early 2008, with highly positive results. Estimated cash costs under the internal pre-feasibility study were US$291/oz Au.
For further information please contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc Tel: 020 7371 0600
Roxane Marffy, Ruegg & Co Ltd.Tel: 020 7584 3663Christian Dennis, Orbis Equity Partners Ltd.Tel: 0203 137 1902Jason Bahnsen, Fox-Davies Capital Ltd.Tel: 020 7936 5200
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