Last checked at 24 Oct 2017 07:00
Georgian Mining Corporation / EPIC: GEO / Sector: Natural Resources
24 October 2017
Georgian Mining Corporation
Drilling Update from KB Gold Zone 2 and New Gold Discovery
Georgian Mining Corporation ('GEO' or the 'Company') is pleased to announce drill results from a further 32 diamond drill holes undertaken by Georgian Copper and Gold ('GCG'), GEO's 50% joint venture company at Gold Zone 2 ('GZ2') at the Kvemo Bolnisi Copper and Gold Project ('KB') on the Tethyan Belt in Georgia. The new results will be incorporated in the existing JORC compliant Mineral Resource estimate. In addition, a new gold target has been identified to the west of the GZ2 Mineral Resource.
This programme focused on drilling around the known margins of the GZ2 Mineral Resource, reconnaissance drilling of other channel, soil and rock chip anomalies located to the east, north and north east of GZ2 and a single drill hole testing an anomaly identified to the west of GZ2.
Highlights
· Gold oxide mineralisation intersected from surface included peak individual gold assays over one metre intervals of 35.4g/t Au, 35.0g/t Au, 15.35g/t Au, 14.3g/t Au, 10.55g/t Au and 5.96g/t Au
· Highlights from the gold oxide drilling include TGD094: 62.0m @ 1.1g/t gold ('Au') from 2.0m
· Limits of the GZ2 Au oxide Mineral Resource now defined for initial mining target
· New gold target discovered 150m to the west of the GZ2 Mineral Resource that returned a diluted intercept of 0.65g/t Au over 143.8m from 117.20m (TGD093) including:
o 1.2m @35g/t Au from 67.0m
o 75.3m@ 0.46g/t Au from 117.2m
o 56.0m @1.03g/t Au from 205.0m
· Intersected further high-grade copper mineralisation over significant widths which will add to the underlying copper ('Cu') sulphide Mineral Resource
· Peak copper grades achieved during drilling include:
o TGD065: 16m @ 3.4% Cu from 188.0m; and
o TGD094: 35m @ 0.95% Cu from 67.0m which included 0.9m @ 15.24% Cu
· Drilling has identified potential sources of low-grade Au oxide and copper sulphide mineralisation that might be suited to alternative processing methods
Included in this drilling are the final 28 drill holes which are now being integrated into the GZ2 resource to optimise the mine plan prior to finalising the KB mining and processing agreement.
Georgian Mining Corp Managing Director Greg Kuenzel said, "The completion of this phase of drilling will enable us to further develop the geological model at the KB Project. In addition, the results will better define future open pit limits for the gold oxide mineralisation at GZ2, as well as the initial mining target prior to finalising the KB mining and processing agreement with our partner as we look to deliver 'proof of concept' copper and gold production at the Project.
"There will also be an addition to the Mineral Resource estimate based on some of the positive intercepts achieved in drilling and this will also flow through to the copper sulphide estimate. The results are with our external Resource consultant for inclusion in an updated Resource estimate."
To view a version of the announcement which includes photos taken during the site visit, please click the following link:
http://www.rns-pdf.londonstockexchange.com/rns/3864U_-2017-10-23.pdf
Au Oxide Drilling
The drilling comprised a suite of drill holes around and within the GZ2 Mineral Resource specifically to define the limits of the Zone and, where applicable, add further tonnes and gold ounces to the Mineral Resource.
Peak intercepts are illustrated below in Table 1.
Hole ID | From (m) | To (m) | Width (m) | Grade (% Cu) | Grade (g/t Au) |
TGD065 | 2.0 11.0 66.0 | 3.0 16.0 73.9 | 1.0 5.0 7.90 | 0.14 0.10 0.10 | 2.92 0.50 2.60 |
TGD066 | 0.00 80.0 | 13.0 87.0 | 13.0 7.00 | 0.10 0.10 | 1.07 2.19 |
TGD067 | 93.0 | 105.9 | 12.90 | 0.47 | 0.40 |
TGD068 | 0.00 | 2.00 | 2.00 | 0.10 | 0.58 |
TGD069 | 3.00 | 30.0 | 27.0 | 0.14 | 0.97 |
TGD070 | 16.4 | 19.8 | 3.40 | 0.10 | 4.90 |
TGD071 | 0.00 | 2.80 | 2.80 | 0.10 | 1.09 |
TGD073 | 18.0 | 23.0 | 5.00 | 0.10 | 0.55 |
TGD075 | 0.00 | 13.0 | 13.0 | 0.40 | 0.33 |
TGD080 | 97.60 | 99.30 | 1.70 | 0.77 | 10.61 |
TGD082 | 67.0 | 86.0 | 19.0 | 0.10 | 0.54 |
TGD083 | 11.0 83.0 | 23.0 91.50 | 12.0 2.50 | 0.10 0.14 | 0.48 1.60 |
TGD086 | 0.00 | 4.00 | 4.00 | 0.10 | 3.84 |
TGD087 | 153.8 190.0 | 184.0 190.80 | 30.20 0.80 | 0.10 0.14 | 0.42 8.83 |
TGD088 | 30.0 51.0 | 33.0 56.0 | 3.00 5.00 | 0.15 0.34 | 16.95 3.00 |
TGD094 | 2.00 | 62.0 | 62.0 | 0.10 | 1.10 |
TGD095 | 1.00 | 5.40 | 5.40 | 0.10 | 0.51 |
Table 1: Gold Zone 2 ("GZ2") Drill Results in the Gold Oxide Zone of Gold Zone 2 ("GZ2") and Immediate Vicinity
The results will now be presented to the external Resource consultant for inclusion in the Mineral Resource estimate for gold oxides.
Cu Sulphide Drilling
Some drill holes were extended into the underlying Cu sulphide mineralisation and these are expected to add to the global Cu Mineral Resource. Peak intercepts are illustrated in Table 2.
Hole ID | From (m) | To (m) | Width (m) | Grade (% Cu) | Grade (g/t Au) |
TGD065 | 188.0 | 204.0 | 16.0 | 3.40 | 0.11 |
TGD067 | 93.0 | 105.9 | 12.90 | 0.47 | 0.40 |
TGD072 | 84.0 | 115.0 | 31.0 | 0.45 | 0.10 |
TGD075 | 0.00 | 13.0 | 13.0 | 0.40 | 0.33 |
TGD084 | 0.00 | 73.0 | 73.0 | 0.33 | 0.10 |
TGD091 | 0.00 17.0 | 11.0 27.0 | 11.0 10.0 | 0.38 0.69 | 0.10 0.10 |
TGD094 | 67.0
| 102.0
| 35.0
| 0.95
| 0.10
|
Table 2: Kvemo Bolnisi ("KB") Copper Sulphide Drill Results
Peak intercepts include TGD065 with 3.4% Cu over 16.0m from 188.0m depth and TGD094 with 0.95% Cu over 35.0m from 67.0m depth. A number of interesting lower grade copper intercepts were also achieved including TGD084 with 0.33% Cu over 73.0m and, TGD072 with 0.45% Cu over 31.0m. Further work is required to evaluate the potential for a large tonnage of lower grade copper mineralisation that may be suited to alternative processing methods over and above that destined for the neighbouring flotation plant.
New Gold Discovery
The discovery of a substantial width of gold mineralisation to the west of GZ2 in drill hole TGD093 below approximately 59m of unconsolidated alluvial sediments that mask any geophysical and geochemical response.
Hole ID | From (m) | To (m) | Width (m) | Grade (% Cu) | Grade (g/t Au) |
TGD093 | 59.9 117.2 163.0 186.0 204.0 | 69.0 161.0 177.0 192.5 261.0 | 9.10 43.8 14.0 6.50 57.0 | 0.10 0.10 0.17 0.10 0.10 | 4.76 0.47 0.33 1.26 1.02 |
Table 3: TGD093 Drill Hole Intercept Assay Results for Copper and Gold.
Accepting no limitation on internal waste, the deeper mineralised intercept starting at a depth of 117.2m returned a gold grade of 0.64g/t Au over 143.8m. Reducing internal waste to no more than 1.0m widths, the zone returns four mineralised intercepts ranging from 0.33g/t Au over 14m and 1.26g/t Au over 6.5m (with other intercepts including 1.02g/t Au over 57m, 0.47g/t Au over 43.8m and 4.76g/t Au over 9.10m). In addition, a sample of 1.2m returned an assay of 35g/t Au from 67.0m within the zone of oxides adding to the potential of the existence of higher grade gold oxides towards the interface with the overlying unconsolidated overburden.
The deeper gold mineralisation represents gold associated with sulphides (pyrite and sphalerite), which differs from the gold oxide mineralisation reported in Gold Zones 1 and 2 at KB. This intersection is further proof of the variety of mineralisation styles typically found in low sulphidation epithermal environments and further exploration drilling will be allocated to this new discovery to test the extent of this ore type.
Full table of significant intercepts.
Hole ID | From (m) | To (m) | Width (m) | Grade (% Cu) | Grade (g/t Au) |
TGD065
inc | 2.0 11.0 66.0 188.0 | 3.0 16.0 73.9 204.0 | 1.0 5.0 7.90 16.0 | 0.14 0.10 0.10 3.40 | 2.92 0.50 2.60 0.11 |
TGD066
inc | 0.00 80.0 83.0 | 13.0 87.0 85.0 | 13.0 7.00 2.00 | 0.10 0.10 0.10 | 1.07 2.19 5.96 |
TGD067 | 93.0 | 105.9 | 12.90 | 0.47 | 0.40 |
TGD068 | 0.00 | 2.00 | 2.00 | 0.10 | 0.58 |
TGD069 | 3.00 | 30.0 | 27.0 | 0.14 | 0.97 |
TGD070 | 16.4 | 19.8 | 3.40 | 0.10 | 4.90 |
TGD071 | 0.00 23.0 | 2.80 41.0 | 2.80 18.0 | 0.10 0.27 | 1.09 0.10 |
TGD072 | 84.0 | 115.0 | 31.0 | 0.45 | 0.10 |
TGD073 | 18.0 | 23.0 | 5.00 | 0.10 | 0.55 |
TGD074 | 175.0 182.0 | 178.0 187.0 | 3.00 5.00 | 1.45 0.46 | 0.10 0.10 |
TGD075 | 0.00 | 13.0 | 13.0 | 0.40 | 0.33 |
TGD076 | 0.00 | 4.00 | 4.00 | 0.10 | 0.27 |
TGD077-079 | No | Significant | Intercepts | ||
TGD080 inc | 97.6 98.10 | 99.3 99.10 | 1.70 1.00 | 0.77 0.10 | 10.61 14.30 |
TGD081 | No | Significant | Intercepts | ||
TGD082 | 67.0 | 86.0 | 19.0 | 0.10 | 0.54 |
TGD083
inc | 11.0 89.0 90.8 | 23.0 91.50 91.50 | 12.0 2.50 0.70 | 0.10 0.14 0.10 | 0.48 1.60 3.87 |
TGD084 | 0.00 | 73.0 | 73.0 | 0.33 | 0.10 |
TGD085 | No | Significant | Intercepts | ||
TGD086 | 0.00 2.00 | 4.00 3.00 | 4.00 2.00 | 0.10 0.10 | 3.84 10.55 |
TGD087 | 153.8 | 184.0 | 30.20 | 0.10 | 0.42 |
TGD088 | 30.0 51.0 | 33.0 56.0 | 3.00 5.00 | 0.15 0.34 | 16.95 3.00 |
TGD089-90 | No | Significant | Intercepts | ||
TGD091 | 0.00 17.0 | 11.0 27.0 | 11.0 10.0 | 0.38 0.69 | 0.10 0.10 |
TGD092 | No | Significant | Intercepts | ||
TGD093 Inc
Inc | 59.9 67.0 117.2 163.0 186.0 204.0 233.0 | 69.0 68.2 161.0 177.0 192.5 261.0 238.0 | 9.10 1.20 43.8 14.0 6.50 57.0 5.00 | 0.10 0.10 0.10 0.17 0.10 0.10 0.10 | 4.76 35.0 0.47 0.33 1.26 1.02 4.44 |
TGD094 | 2.00 67.0 100.0 | 62.0 102.0 118.0 | 62.0 35.0 12.0 | 0.10 0.95 0.24 | 1.10 0.10 0.10 |
TGD095 | 1.00 12.0 16.0 56.0 | 6.40 14.0 20.0 58.0 | 5.40 2.00 4.00 2.00 | 0.10 0.10 0.18 0.33 | 0.51 0.23 1.00 1.54 |
TGD096 Inc
Inc
Inc | 37.0 38.0 58.0 73.0 79.0 91.0 119.2 124.8 135.5 135.5 | 57.0 43.0 64.0 75.0 83.0 114.0 132.0 125.2 168.8 136.1 | 20.0 5.00 6.00 2.00 4.00 23.0 12.8 0.40 33.3 0.60 | 1.74 4.14 0.23 0.12 0.16 0.50 0.42 4.98 1.00 14.02 | 0.28 - 0.10 0.61 0.10 0.10 0.10 0.10 0.10 0.10 |
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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' and as a qualified person as defined in the Note for Mining and Oil & Gas Companies which form part of the AIM Rules for Companies. 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.
**ENDS**
For further information please visit www.georgianmining.com or contact:
Greg Kuenzel | Georgian Mining Corporation | Company | Tel: 020 7907 9327 |
Ewan Leggat | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3470 0470 |
Soltan Tagiev | S. P. Angel Corporate Finance LLP | Nomad & Broker | Tel: 020 3470 0470 |
Damon Heath | Shard Capital Partners LLP | Joint Broker | Tel: 0207 186 9950 |
Frank Buhagiar | St Brides Partners Ltd | PR | Tel: 020 7236 1177 |
Susie Geliher | St Brides Partners Ltd | PR | Tel: 020 7236 1177 |
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 nearby existing mining operations owned by the Company's supportive joint venture partner. Georgia has an established mining code and is a jurisdiction open to direct foreign investment.
GCG is developing the project in three phases:
· Phase 1: H1 2017 target to delineate a minimum of 1-2 Mt to support initial spare capacity (now achieved and exceeded)
· Phase 2: 2017 target to delineate a 3-5 Mt resource of combined copper-gold sulphide and gold oxide mineralisation (achieved)
· Phase 3: Long term target - to delineate a resource of 50Mt+