Last checked at 28 Jun 2010 07:00
28 June 2010 Kryso Resources plc (`Kryso' or `the Company') AIM: KYS Total JORC Resources at Pakrut Increased to 3,024,000 oz Au
- Total Measured & Indicated resources increased by 353,300 oz Au (+26%) at a 0.5 g/t Au cut-off
- Further increase in total JORC Mineral Resource expected once results from 2010 drilling are incorporated
- Updated Mineral Resource to be incorporated into Pakrut bankable feasibility study ("BFS")
Kryso Resources plc (AIM: KYS), the gold exploration and development company that is advancing its Pakrut gold project in Tajikistan through a bankable feasibility study, is pleased to announce that Snowden Mining Industry Consultants (Pty) Ltd (`Snowden') has completed an updated Mineral Resource estimate for the Pakrut gold deposit, which has been classified and reported in-line with the JORC Code. Snowden is a highly regarded international mining consultancy with a 22-year industry track record.
The updated Mineral Resource includes the results of drilling at Pakrut in the second half of 2009 that were released in April 2010.
Pakrut Gold Project - Mineral Resource Summary
Total Tonnes Au Ag Au Cut-off Au (g/t) (metric) (g/t) (g/t) (oz) 0.0 46,380,000 2.03 0.95 3,024,000 0.5 41,723,000 2.23 0.83 2,990,000 1.0 36,600,000 2.42 0.82 2,852,000 3.0 7,878,000 4.66 0.81 1,181,000 5.0 2,334,000 6.72 0.88 504,000Measured Tonnes Au Ag Au Cut-off Au (g/t) (metric) (g/t) (g/t) (oz) 0.0 11,943,000 2.53 0.77 970,000 0.5 11,872,000 2.54 0.77 969,000 1.0 10,489,000 2.76 0.77 932,000 3.0 3,026,000 5.25 0.88 510,000 5.0 1,144,000 7.51 0.98 276,000Indicated Tonnes Au Ag Au Cut-off Au (g/t) (metric) (g/t) (g/t) (oz) 0.0 10,095,000 2.22 0.68 720,000 0.5 9,955,000 2.24 0.66 719,000 1.0 8,475,000 2.49 0.63 678,000 3.0 2,261,000 4.64 0.73 338,000 5.0 776,000 6.10 0.77 152,000Measured + Indicated Cut-off Tonnes Au Ag Au Au (g/t) (metric) (g/t) (g/t) (oz) 0.0 22,038,000 2.38 0.73 1,690,000 0.5 21,827,000 2.40 0.72 1,687,000 1.0 18,964,000 2.64 0.71 1,610,000 3.0 5,288,000 4.99 0.81 848,000 5.0 1,920,000 6.94 0.90 428,000 Inferred Tonnes Au Ag Au Cut-off Au (g/t) (metric) (g/t) (g/t) (oz) 0.0 24,343,000 1.70 1.16 1,302,000 0.5 19,896,000 2.04 0.95 1,302,000 1.0 17,636,000 2.19 0.94 1,242,000 3.0 2,591,000 3.99 0.80 332,000 5.0 414,000 5.69 0.82 76,000
Dr. Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso, comments:
`I am particularly pleased to see that Pakrut's Measured and Indicated Mineral Resources have increased by 26%, which can now be incorporated in the Pakrut BFS.
We anticipate further increase in the total Mineral Resources of Pakrut following this year's drilling programme, which is well underway. The bankable feasibility study being undertaken by Beijing General Research Institute of Mining & Metallurgy is being updated with this increased Mineral Resource prior to being released.'
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 gold Mineral Resources of 3,024,000 oz Au (assuming a cut-off grade of 0.0g/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 the following results released in April 2010:
- Ore Zone 1: 25.5m at 7.5 g/t, 42.4m at 5.4 g/t and 12.0m at 6.4 g/t Au
- Ore Zone 3: 9.0m at 7.5 g/t and 13.5m at 7.5 g/t Au (with 4.5m at 20.1 g/t)
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 contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc Tel: +44 (0) 20 7371 0600
Katy Mitchell, WH Ireland LimitedTel: +44 (0) 0161 832 2174
Christian Dennis/Jeremy King, Optiva Securities Limited (formally Orbis Equity Partners Limited) Tel: +44 (0) 20 3137 1902
Notes
The Mineral Resource, as defined using the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), has been estimated by Snowden and been tabulated above block model cut-offs of 0.0 g/t Au, 0.5g/t Au, 1.0g/t Au, 3.0g/t Au and 5.0 g/t Au. The Mineral Resource has been classified as Measured, Indicated and Inferred according to the JORC Code and is based on mineralisation interpretations and data supplied by Kryso.
The data used for the resource estimation comprises 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.
Ordinary block kriging and indicator kriging was used to estimate gold and silver grades into a wire-framed volume model filled with orthogonal blocks 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 four mineralized domains.
Snowden has based the classification of the Mineral Resource 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 Mineral Resource within the well drilled areas of 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. The parts of the Mineral Resource model that were estimated up to the distance of the variogram range using a minimum of 12 samples have been classified as Indicated. All other areas of the Mineral Resource have been classified as an Inferred Resource. Around 30% of the Inferred Resource is based on extrapolation, beyond four times the variogram range, of up to 200 m at depth and has been given the average grade of the estimation domain.
An average in situ density of 2.57 t/m3 has been applied to the oxidized zone of the mineralization 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 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, 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.
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.
Dr. Trevor Davenport (B.Sc, M.Sc, Ph.D, MIMM, C.Eng) is Non-Executive Chairman and acting Managing Director of Kryso Resources plc and provided geological interpretations and the drillhole and trench database for Mineral Resource estimation. Dr. Davenport 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 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.
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.
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