15 Apr 2011 07:00
Kryso Resources plc
('Kryso' or the 'Company')
Total JORC Resources Increased to 3,578,000 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 have been classified and reported in-line with the 2004 JORC Code.
Total Measured resources increased by 519,000 oz Au (+54%) at a 0.5 g/t Au cut-off Inferred Eastern Pakrut resource has increased by 369,000 oz Au (+354%) at a 0.5 g/t cut-offSnowden's updated estimate incorporates 16 new diamond drill holes which confirm the grade, tenor and geological continuity in the main mineralised areas of Pakrut. In addition, 5 grade control trenches and 2 diamond drill holes have been added in the Eastern Pakrut area. The updated Mineral Resource includes the results of drilling at Pakrut and Eastern Pakrut in 2010 that were released in March 2011.
Pakrut Gold Project - Mineral Resource Summary
| Total Cut-off | Tonnes | Au | Ag | Au | |||||
| Au (g/t) | (metric) | (g/t) | (g/t) | (oz) | |||||
| 0.0 | 51,962,000 | 2.14 | 1.00 | 3,578,000 | |||||
| 0.5 | 50,656,000 | 2.19 | 0.99 | 3,565,000 | |||||
| 1.0 | 45,893,000 | 2.33 | 1.01 | 3,434,000 | |||||
| 3.0 | 8.077,000 | 4.43 | 1.01 | 1,151,000 | |||||
| 5.0 | 1,698,000 | 7.01 | 0.99 | 383,000 |
| Measured Cut-off | Tonnes | Au | Ag | Au | |||||
| Au (g/t) | (metric) | (g/t) | (g/t) | (oz) | |||||
| 0.0 | 17,434,000 | 2.66 | 0.75 | 1,488,000 | |||||
| 0.5 | 17,375,000 | 2.66 | 0.75 | 1,488,000 | |||||
| 1.0 | 16,060,000 | 2.81 | 0.75 | 1,452,000 | |||||
| 3.0 | 5,163,000 | 4.85 | 0.83 | 806,000 | |||||
| 5.0 | 1,522,000 | 7.13 | 0.99 | 349,000 |
| Indicated Cut-off | Tonnes | Au | Ag | Au | |||||
| Au (g/t) | (metric) | (g/t) | (g/t) | (oz) | |||||
| 0.0 | 7,598,000 | 1.69 | 0.82 | 413,000 | |||||
| 0.5 | 7,534,000 | 1.70 | 0.82 | 412,000 | |||||
| 1.0 | 6,589,000 | 1.82 | 0.79 | 386,000 | |||||
| 3.0 | 524,000 | 3.89 | 0.91 | 65,000 | |||||
| 5.0 | 55,000 | 6.59 | 1.08 | 12,000 |
| Measured + Indicated | |||||||||
| Cut-off | Tonnes | Au | Ag | Au | |||||
| Au (g/t) | (metric) | (g/t) | (g/t) | (oz) | |||||
| 0.0 | 25,032,000 | 2.36 | 0.77 | 1,901,000 | |||||
| 0.5 | 24,909,000 | 2.37 | 0.77 | 1,900,000 | |||||
| 1.0 | 22,649,000 | 2.52 | 0.76 | 1,838,000 | |||||
| 3.0 | 5,687,000 | 4.77 | 0.84 | 871,000 | |||||
| 5.0 | 1,578,000 | 7.11 | 0.99 | 361,000 | |||||
| Inferred Cut-off | Tonnes | Au | Ag | Au | |||||
| Au (g/t) | (metric) | (g/t) | (g/t) | (oz) | |||||
| 0.0 | 26,930,000 | 1.94 | 1.22 | 1,676,000 | |||||
| 0.5 | 25,747,000 | 2.01 | 1.21 | 1,666,000 | |||||
| 1.0 | 23,244,000 | 2.14 | 1.25 | 1,596,000 | |||||
| 3.0 | 2,390,000 | 3.64 | 1.43 | 279,000 | |||||
| 5.0 | 121,000 | 5.69 | 1.03 | 22,000 |
Craig Brown, Managing Director of Kryso, commented:
'I am delighted with the significant, 54% increase in Pakrut's Measured Resources at a 0.5 g/t Au cut-off. In addition, the 354% increase in the inferred resource at a 0.5 g/t Au cut-off at our developing Eastern Pakrut project demonstrates the considerable potential of this resource.'
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 3,578,000 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 encouraging intersections, including the following results released in March 2011:
Ore Zone 1: 21m (\* TW-15.3m) at 7.28 g/t, 24m (TW-17.98m) at 5.39 g/t and 16.5m (TW-12.36m) at 5.57 g/t Au Ore Zone 2: 30m (TW-22.62m) at 4.37 g/t and 42.9m (TW-32.89m)at 2.57 g/t Au Ore Zone 3: 16.5m (TW-13.28m) at 4.48 g/t and 6m (TW-4.92m) at 6.58 g/t Au Ore Zone 6: 4.5m (TW-3.44m) at 18.2 g/tAbout 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 Dr Trevor Davenport/Craig Brown | Tel: +44 (0)20 7371 0600 | |
| Evolution Securities Jeremy Ellis/Andrew Dacey | Tel:+44 (0)20 7071 4300 | |
| Optiva Securities Limited Christian Dennis/Jeremy King | Tel: +44 (0)20 3137 1902 | |
| Walbrook PR Bob Huxford
Paul Cornelius | Tel: +44 (0)20 7933 8780 Mobile: 07900 346 978 Tel: +44 (0)20 7933 8794 Mobile: 07827 879 460 |
Notes
Snowden has completed an updated Mineral Resource estimate for the Pakrut and Eastern Pakrut prospects. The resource has been estimated for Pakrut and Eastern Pakrut and cut-off grades of 0.0 g/t Au, 0.5g/t Au, 1.0g/t Au, 3.0g/t Au and 5.0 g/t Au were applied. At a gold cut-off grade of 0.5g/t, the total estimated Pakrut Mineral Resource is 44.3 Mt averaging 2.17 g/t Au. This estimate includes 17.4 Mt of Measured Mineral Resources at an average grade of 2.66 g/t Au. Eastern Pakrut contains an estimated Inferred Mineral Resource of 6.4 Mt averaging 2.31 Au, at a gold cut-off grade of 0.5 g/t.
The April 2011 Mineral Resource estimate for Pakrut comprises 7% more total gold ounces than the previous, June 2010 Mineral Resource estimate at a gold cut-off of 0.5 g/t. The Measured Mineral Resource category has increased by 54%. The Inferred Eastern Pakrut Mineral Resource estimate has increased by 354%.
The Mineral Resource has been classified as Measured, Indicated and Inferred categories according to the 2004 JORC code and is based on the geological interpretation and data supplied by Kryso. 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 channel sampling 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 within the well-drilled areas of the main zones (Zones 1, 1A, 2 and 3) and 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 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 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 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.
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 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 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.
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.
TW - true width
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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