Last checked at 20 Oct 2016 07:00
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20 October 2016
Georgian Mining Corporation ('GMC' or 'the Company')
Drill Results at the Kvemo Bolnisi Project
Georgian Mining Corporation is pleased to report that continued drilling at the Kvemo Bolnisi Project ('KB' or 'the Project') in Georgia has intercepted additional significant near-surface copper and gold sulphide mineralisation.
Highlights
· Significant new drill intercepts include:
o KED004 27.0m @ 2.57% Cu and 0.23g/t Au from 107m;
o KED003 19.5m @ 0.85% Cu and 0.18g/t Au from 46.5m; and
o KED006 18.8m @ 1.5% Cu from 47.0m
· Nine out of ten drill holes in the current programme have intersected significant zones of mineralisation which are open in several directions
· Current drill programme has tested a 100m x 150m footprint to over 150m depth intended to verify high grade copper assay results from our local partner's 2008 drill programme
GMC's Managing Director Greg Kuenzel said, "The high grades returned from our drill programme suggest that a significant resource exists at KB. This copper-gold mineralisation is adjacent to and extends beneath the oxide gold mineralisation previously identified. We recently made the decision to postpone our initial small-scale gold production at this target to focus on the significantly larger and more robust, combined copper-gold mineralisation. Having confirmed that excess capacity exists at our local partner's plant, we are now looking to determine the exact requirements at the nearby operating flotation plant (for copper-gold sulphide ore), and heap leach plant (for gold oxides) to allow us to plan initial tonnage targets for supplying ore to the plants."
Kvemo Bolnisi
Kvemo Bolnisi is now the priority project for Georgian Mining Corporation for the following reasons:
1. Location - The Project is located 7km from GMC's local partner's Madneuli copper/gold mine and processing operation which has capacity available to facilitate a short lead time to initial production
2. Geology - Outcropping and near surface copper and gold mineralisation has been intersected to depths exceeding 300m
3. Grade - Drill results demonstrating consistently higher grades than in previous programs could support a significantly larger resource than previously expected
Future drilling is being planned to test for extensions of this zone of copper-gold sulphide mineralisation, as outlined by drilling completed to date, beyond the initial test area and towards building a first Mineral Resource Estimate. To date 25 confirmatory drill holes have been completed for a total of 1,857m with results from the latest 5 holes being summarised in the table below.
Image 1: Schematic section (not to scale) showing typical mineralisation at KB (Click on the PDF at the top of the page to view)
Drill Hole | Width (m) | From (m) | Cu | Au |
KED003 | 21.0 | 0 | - | 0.46 g/t |
KED003 | 11.0 | 21.0 | 0.42% | 0.19 g/t |
KED003 | 19.5 | 46.5 | 0.85% | 0.18 g/t |
KED004 | 27.0 | 107.0 | 2.57% | 0.23 g/t |
KED004 | 6.0 | 221.0 | 0.82% | - |
KED005 | 11.0 | 0 | 0.20% | - |
KED006 | 13.0 | 0 | 0.38% | - |
KED006 | 9.0 | 17.0 | 0.25% | - |
KED006 | 18.8 | 47.0 | 1.50% | - |
KED006 | 4.0 | 118.0 | 0.18% | - |
KED007 | 6.0 | 11.0 | 1.83% | - |
KED007 | 18.0 | 96.0 | 0.56% | - |
KED007 | 15.0 | 118.0 | 0.27% | - |
Table 1: Significant intercepts
**ENDS**
For further information please visit www.georgianmining.com or contact:
Greg Kuenzel | Georgian Mining Corporation | Company | Tel: 020 7907 9327 |
Martyn Churchouse | Georgian Mining Corporation | Company | Tel: 020 7907 9327 |
Ewan Leggat | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3470 0470 |
Laura Harrison | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3470 0470 |
Damon Heath | Shard Capital Partners LLP | Joint Broker | Tel: 0207 186 9950 |
Elisabeth Cowell | St Brides Partners Ltd | PR | Tel: 020 7236 1177 |
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Competent Person Statement
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by James Royall, who is a Member of the Australian Institute of Geoscientists.
James Royall 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 in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. James Royall has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
About Georgian Mining Corporation
Georgian Mining Corporation has 50% ownership and operational control of the Bolnisi Copper and Gold Project in Georgia, situated on the prolific Tethyan Belt, a well-known geological region and host to many high grade copper-gold deposits and producing mines.The Bolnisi licence covers an area of over 860 sq km and has a 30 year mining licence with two advanced exploration projects; Kvemo Bolnisi and Tsitsel Sopeli. These projects are proximal to existing mining operations which are owned by the Company's supportive joint venture partner. Georgia has an established mining code and is a jurisdiction open to direct foreign investment.