Last checked at 9 May 2012 07:00
Kryso Resources plc
('Kryso' or the 'Company')
Total JORC Mineral Resource passes 5,000,000 oz Au
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce that Snowden Mining Industry Consultants (Pty) Ltd ('Snowden') has completed an updated Mineral Resource estimate for the Pakrut and Eastern Pakrut gold prospects, which has been classified and reported in-line with the 2004 JORC Code.
Total Measured, Indicated and Inferred resources at Pakrut and Eastern Pakrut are now 5,020,000 oz Au at a 0.5 g/t cut-off - an increase of 40% over last year's resource. Measured and Indicated resources at Pakrut have increased by 305,000 oz to 2,210,000 oz Au at a 0.5 g/t cut-off.Snowden's updated estimates at Pakrut (reported below) incorporate 13 new diamond drill holes which confirm the grade, tenor and geological continuity in the main mineralised areas of Pakrut.
At Eastern Pakrut, five kilometres up the valley from Pakrut, the estimate incorporates an additional seven diamond drill holes as well as updated interpretations generated by Kryso. The inferred resource at Eastern Pakrut is 465,000 oz Au at a cut-off grade of 0.5 g/t. In addition, 11 exploration drill holes were completed in the Rufigar area, which is located approximately eight kilometres to the north of Pakrut.
Pakrut Gold Project - Mineral Resource Summary - 0.5 g/t Au cut-off grade1
| Category | Tonnes (kt) | Au (g/t) | Ag (g/t) | Metal Au (Thousand oz) | |||||||||||||
| Measured | 18,200 | 3.00 | 0.76 | 1,760 | |||||||||||||
| Indicated | 7,600 | 1.83 | 0.79 | 449 | |||||||||||||
| Measured + Indicated | 25,800 | 2.66 | 0.77 | 2,210 | |||||||||||||
| Inferred | 32,300 | 2.26 | 0.69 | 2,350 | |||||||||||||
| Total | 58,100 | 2.44 | 0.73 | 4,560 | |||||||||||||
| 1. Tonnes and ounces rounded to 3 significant figures | |||||||||||||||||
Eastern Pakrut Gold Project - Mineral Resource Summary - 0.5 g/t Au cut-off grade1
| Category | Tonnes (kt) | Au (g/t) | Ag (g/t) | Metal Au (Thousand oz) | |||||||||||
| Inferred | 9,300 | 1.55 | 3.95 | 465 | |||||||||||
| 1. Tonnes and ounces rounded to 3 significant figures | |||||||||||||||
Craig Brown, Managing Director of Kryso, commented:
'We are delighted with the overall increase in the total Mineral Resource at Pakrut and Eastern Pakrut. The increase of 305,000 oz Au in the Measured and Indicated categories at Pakrut is particularly encouraging and the Board is very positive that this resource will continue to increase with further drilling. The updated resource estimate further supports our belief that Pakrut will develop into a significant underground gold mining operation.'
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 an estimated total Mineral Resource of over 5,000,000 oz Au (assuming a cut-off grade of 0.5 g/t Au). It 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.
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.
For further information please visit the Company's website (www.kryso.com) or please contact:
| Kryso Resources PLC Craig Brown, Managing Director | Tel: +44 (0) 20 7349 9160 | |
| Investec Investment Banking Jeremy Ellis, Chris Sim, Neil Elliot | Tel: +44 (0)20 7597 5970 | |
| XCAP Securities plc Jon Belliss | Tel: +44 (0) 207 101 7070 | |
| Walbrook PR Louise Mason Paul Cornelius | Tel: +44 (0)20 7933 8780 Tel: +44 (0)20 7933 8794 |
Notes:
Snowden has completed an updated Mineral Resource estimate for the Pakrut and Eastern Pakrut prospects. The resource estimate for Pakrut and Eastern Pakrut has been reported at cut-off grades of 0.5 g/t Au, 1.0 g/t Au, 1.5 g/t Au, 3.0 g/t Au and 5.0 g/t Au.
At a gold cut-off grade of 0.5 g/t, the total estimated Pakrut Mineral Resource is 58.1 Mt averaging 2.44 g/t Au. This estimate includes 25.8 Mt of Measured and Indicated Mineral Resources at an average grade of 2.66 g/t Au. The Mineral Resource has been classified in the Measured, Indicated and Inferred categories according to the 2004 JORC code.
Eastern Pakrut contains an estimated Inferred Mineral Resource of 9.3 Mt averaging 1.55 g/t Au, at a gold cut-off grade of 0.5 g/t.
In addition to the Pakrut and Eastern Pakrut resources, mineralisation was intesected in nine of the twelve exploration diamond drill holes at Central Rufigar (five drill holes), Upper Rufigar (three drill holes) and Eastern Rufigar (one drill hole). These three prospects are located approximately eight kilometres to the north of Pakrut in an adjacent valley. The exploration drilling and previous trenching results were of insufficient density to estimate a resource.
The estimate is based on the geological interpretation and data supplied by Kryso, which has been prepared under the supervision of Dr Trevor Davenport. The data used for the resource estimation is comprised of diamond drilling, surface trenching and channel sampling. Snowden has reviewed the drilling and sampling data underlying the resource estimate and can verify that the data is of sufficient quality to support the resource classifications applied.
The Pakrut gold deposit consists of steeply-dipping, mineralised, metasomatised zones hosted in green chloritic schists which are folded into the Pakrut Anticline. Interpretations of the mineralised zones have been completed by Kryso using a nominal cut-off of 0.5 g/t Au in conjunction with the geological logging.
Ordinary kriging and indicator kriging were used to estimate gold and silver grades 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 mineralised domains. The surface trench data was used to estimate only the first 10 m below the topographic surface of the deposit and all the remaining areas were estimated using diamond drilling and underground sampling only.
Snowden has based the resource classification upon the JORC Code definitions and used a number of criteria, including the confidence in the geological interpretation, 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 within the well-drilled areas of the main zones (Zones 1, 1A, 2 and 3) that were estimated utilising a first search pass within the variogram range with a minimum of 20 samples, have been classified as Measured Resources. The parts of the resource model that were estimated up to the distance of the variogram range with a minimum of 12 samples have been classified as Indicated Resources. All other areas of the resource and in some cases where the data density is deemed too low have been classified as Inferred Resources. Around 38% of the Inferred Resource is based on extrapolation of up to 200 m (where geological continuity can be reasonably assumed), or blocks at depth with insufficient information for estimation (these blocks have been assigned the average grade of the domain).
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.
The grade-tonnage estimate that forms the basis of the Mineral Resource has been reported at a range of additional cut-off grades (Au) for comparative purposes (see below).
Pakrut Gold Project - Mineral Resource Summary1
| Cut-off (Au g/t) | Tonnes (kt) | Au (g/t) | Ag (g/t) | Metal Au (Thousand oz) | |||||||||||||
| Measured | |||||||||||||||||
| 0.5 | 18,200 | 3.00 | 0.76 | 1,760 | |||||||||||||
| 1 | 16,900 | 3.17 | 0.76 | 1,720 | |||||||||||||
| 1.5 | 13,000 | 3.74 | 0.79 | 1,560 | |||||||||||||
| 3 | 6,000 | 5.65 | 0.87 | 1,080 | |||||||||||||
| 5 | 2,400 | 8.32 | 0.98 | 648 | |||||||||||||
| Indicated | |||||||||||||||||
| 0.5 | 7,600 | 1.83 | 0.79 | 449 | |||||||||||||
| 1 | 6,800 | 1.96 | 0.78 | 425 | |||||||||||||
| 1.5 | 4,600 | 2.42 | 0.82 | 316 | |||||||||||||
| 3 | 876 | 3.87 | 1.02 | 109 | |||||||||||||
| 5 | 72 | 6.64 | 1.27 | 15 | |||||||||||||
| Measured + Indicated | |||||||||||||||||
| 0.5 | 25,800 | 2.66 | 0.77 | 2,210 | |||||||||||||
| 1 | 23,600 | 2.82 | 0.76 | 2,150 | |||||||||||||
| 1.5 | 17,100 | 3.43 | 0.80 | 1,880 | |||||||||||||
| 3 | 6,900 | 5.43 | 0.89 | 1,200 | |||||||||||||
| 5 | 2,500 | 8.27 | 0.99 | 660 | |||||||||||||
| Inferred | |||||||||||||||||
| 0.5 | 32,300 | 2.26 | 0.69 | 2,350 | |||||||||||||
| 1 | 29,300 | 2.41 | 0.64 | 2,270 | |||||||||||||
| 1.5 | 21,800 | 2.81 | 0.63 | 1,970 | |||||||||||||
| 3 | 8,000 | 3.62 | 0.65 | 931 | |||||||||||||
| 5 | 401 | 7.81 | 0.94 | 101 | |||||||||||||
| Total | |||||||||||||||||
| 0.5 | 58,100 | 2.44 | 0.73 | 4,560 | |||||||||||||
| 1 | 52,900 | 2.60 | 0.70 | 4,410 | |||||||||||||
| 1.5 | 38,800 | 3.08 | 0.70 | 3,850 | |||||||||||||
| 3 | 14,900 | 4.45 | 0.76 | 2,130 | |||||||||||||
| 5 | 2,900 | 8.21 | 0.98 | 764,000 | |||||||||||||
| 1 Tonnes and ounces rounded to 3 significant figures | |||||||||||||||||
Eastern Pakrut Gold Project - Mineral Resource Summary1
| Cut-off (Au g/t) | Tonnes (kt) | Au (g/t) | Ag (g/t) | Metal (Au oz) | |||||||||||||
| Inferred | |||||||||||||||||
| 0.5 | 9,300 | 1.55 | 3.95 | 465,000 | |||||||||||||
| 1 | 8,900 | 1.60 | 4.05 | 456,000 | |||||||||||||
| 1.5 | 5,700 | 1.89 | 5.47 | 344,000 | |||||||||||||
| 3 | 77 | 3.22 | 6.43 | 8,000 | |||||||||||||
| 1. Tonnes and ounces rounded to 3 significant figures | |||||||||||||||||
The information in this report that relates to Mineral Resources as defined under the JORC Code is based on information compiled by Ms Lynn Olssen, Mr Ivor Jones and Dr. Trevor Davenport.
Ms Lynn Olssen, (BSc, Post Grad. Cert. Geostatistics, MAusIMM, CPgeo), is a Principal Consultant in Applied Geosciences with Snowden and produced the resource estimate based upon the data and interpretations provided by Kryso. Ms Olssen has sufficient experience relevant to the type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined under the JORC Code. Ms Olssen consents to the inclusion in this report of the matters based on her information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
Mr Ivor Jones, (BSc(Hons), MSc, FAusIMM, CPgeo), is the Group General Manager of Geosciences with Snowden and contributed in producing the Mineral Resource estimate based upon the data and interpretations provided by Kryso. Mr Jones has sufficient experience relevant to the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code. Mr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
Dr. Trevor Davenport (B.Sc, M.Sc, Ph.D, MIMM, C.Eng) - a former Non-Executive Chairman of Kryso Resources plc - is a geological consultant and has provided geological interpretations and the drillhole and trench database for Mineral Resource estimation. Dr. Davenport has sufficient experience 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 under the JORC Code. Dr. Davenport consents to the inclusion in this report of the matters based on his information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
Glossary
Ag - The chemical symbol for silver.
Au - The chemical symbol for gold.
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.
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.
Grade g/t - Grams per tonne.
JORC Code - The 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Kriging - A statistical technique used with variograms, or two-point statistical functions that describe the increasing difference or decreasing correlation between sample values as separation between them increases, to determine the value of a point in a heterogeneous grid from known values nearby.
m - Metre.
oz - Troy ounce.
Resource - An estimated tonnage and grade of mineralisation in the ground.
Mineral Resource - An estimated tonnage and grade of mineralisation in the ground reported in-line with the JORC Code.
t - Metric tonne.
Variogram - A two-point statistical function that describes the increasing difference or decreasing correlation or continuity between sample values as separation between them increases.
Copyright Business Wire 2012