Last checked at 10 Jan 2011 07:00
Kryso Resources plc("Kryso" or the "Company")
Update
Kryso Resources plc (AIM: KYS), the mineral exploration and development company with gold and nickel-copper projects in Tajikistan, is pleased to announce the following updates:
Pakrut Bankable Feasibility Study ("BFS") approved by the Kryso BoardThe directors of Kryso can confirm that the BFS has been formally approved by the new Kryso directors at a board meeting of the Company, following the admission of China Nonferrous Metals Int'l Mining Co. Ltd's ("CNMIM") shares to trading on AIM.
Pursuant to the subscription agreement ("Subscription Agreement") entered into between the Company and CNMIM on 27 July 2010, CNMIM is obliged to use its best endeavours to procure, within the period of three months following formal approval of the BFS by the Board and admission of CNMIM's shares to AIM, a written offer of debt funding to the Company by a bank, financial institution or provider of debt finance for the purpose of implementing the BFS, and for such an offer to be for an amount not less than 70 per cent of the Pakrut Funding Requirement (as defined in the Subscription Agreement). The period of three months began on 8 December 2010.
The results of the BFS were announced by Kryso on 14 October 2010, and as also confirmed on that date Kryso is using a third party firm to calculate JORC Code compliant Ore Reserve estimates for the Pakrut gold deposit, which will be published in due course.
Appointment of Beijing General Research and Institute of Mining & Metallurgy ("BGRIMM")The Company advises that pursuant to a tender process completed during December 2010, it has appointed BGRIMM to complete the detailed engineering design of the mine and plant for the development of the Pakrut Gold Deposit. BGRIMM has recently returned from a visit to the Pakrut site in Tajikistan.
Drilling UpdateDuring 2010 the Company completed 6,968 metres of core drilling in the Pakrut valley which represents an average 69% increase on the total number of metres drilled in the three preceding years. Samples are now being prepared for export to an independent, internationally recognised laboratory for assaying and thereafter it is the Company's intention to release a further JORC Code compliant Resource Update and Reserve Estimate.
Craig Brown, acting-Managing Director and Finance Director, Kryso Resources, commented: "The approval of the BFS by the Board and the appointment of BGRIMM marks significant progress for the Company, and will allow us to move forward with the Pakrut Gold Deposit. We expect to release results of the 2010 drill programme during the first quarter of 2011, with a resource update following shortly thereafter."
-Ends-
Enquires:
Dr Trevor Davenport/Craig Brown, Kryso Resources plcTel: +44 (0)20 7371 0600
Katy Mitchell, WH Ireland LimitedTel: +44 (0)16 1832 2174
Christian Dennis/Jeremy King, Optiva Securities LimitedTel: +44 (0)20 3137 1902
Bob Huxford, Walbrook PRTel: +44 (0)20 7933 8780Mobile: 07900 346 978Bob.huxford@walbrookpr.com
About the Pakrut Gold Project
The Pakrut gold project, of which Kryso has 100% ownership, is situated in Tajikistan approximately 112km northeast of the capital city Dushanbe. Pakrut has total JORC Code-compliant 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.
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.
Copyright Business Wire 2011