21 Oct 2016 07:00
Kolar Gold Limited
("Kolar Gold", "Kolar" or the "Company")
Indian Resource Size Increase
Kolar Gold Limited (LON: KGLD), the AIM-quoted gold exploration and mine development company, is pleased to provide an update on its Indian interests.
Jonnagiri
As previously announced, Geomysore Services (India) Private Limited ("Geomysore"), in which Kolar owns 22.31% equity as at today's date, is in the process of undertaking an Economic Feasibility Study ("EFS") in respect of building a producing open pit gold mine from the East Block at Jonnagiri, for which Geomysore has been granted a 30-year mining licence to mine 365,000 tonnes of gold ore per year.
Whilst drilling and mine planning for the EFS continues at Jonnagiri, Geomysore commissioned Golder Associates Pty Limited ("Golders") to review the drilling programme and estimate the JORC compliant resource at Jonnagiri. Following completion of this review based on the data available as at 30 June 2016, Golders has estimated a JORC compliant resource (the "Resource") of 351,000 ounces (Indicated and Inferred) in aggregate at the East and West (formerly 'Temple Deep') blocks (234,000 ounces and 117,000 ounces respectively), a significant increase from the approximate 150,000 ounces identified at the East Block and announced on 30 March 2016.
Kolar Gold CEO, Cameron Parry, commented: "We are delighted to report that the JORC compliant resource at Jonnagiri has materially increased since earlier this year thanks to the significant improvement at the East block and through the addition of the underground prospect in the West block.
"The EFS is scheduled to be completed before the end of the first quarter next year. Kolar intends to provide an interim update on the EFS drilling results at Jonnagiri over the next couple of months. Upon completion of the EFS drilling programme and pit optimisation study, the size of the JORC resource will be updated further.
"Kolar Gold continues to progress its threefold strategy; build value in Kolar's Indian gold interests, establish fintech applications that can leverage off Kolar's gold focus in India, and, as recently secured in Finland, develop high grade gold assets in a second jurisdiction."
Resource Update Details
The JORC Resource at Jonnagiri has been estimated using a 0.5 g/t cut off for potential open pit activities and a 2 g/t cut off for potential underground activities at the West block. Golders also provided Geomysore with the West Block model to assess the underground viability at lower cut off grades in the context of the Indian cost structure. The summary of the resource estimate is as follows:
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| Gross ¹ | Net attributable ¹ ² | ||||
Deposit | Class | Cut-off (g/t Au) | Tonnes (Kt) | Au (g/t) | Ounces | Tonnes (Kt) | Au (g/t) | Ounces |
East Block | Indicated | 0.5 | 1,800 | 1.48 | 85,000 | 402 | 1.48 | 18,964 |
Inferred | 0.5 | 3,700 | 1.26 | 148,000 | 825 | 1.26 | 33,019 | |
Sub-total | 0.5 | 5,500 | 1.33 | 234,000 | 1,227 | 1.33 | 51,983 | |
West Block (Temple) - Open Pit | Indicated | 0.5 | 500 | 1.05 | 18,000 | 112 | 1.05 | 4,016 |
Inferred | 0.5 | 300 | 1.13 | 9,000 | 67 | 1.13 | 2,008 | |
Sub-total | 0.5 | 800 | 1.08 | 27,000 | 179 | 1.08 | 6,024 | |
Jonnagiri Total - Open Pit | Indicated | 0.5 | 2,300 | 1.38 | 103,000 | 513 | 1.38 | 22,979 |
Inferred | 0.5 | 3,900 | 1.25 | 158,000 | 870 | 1.25 | 35,250 | |
Total | 0.5 | 6,200 | 1.30 | 261,000 | 1,383 | 1.30 | 58,229 | |
West Block - Underground | Inferred | 2.0 | 800 | 3.52 | 90,000 | 178 | 3.52 | 20,079 |
Jonnagiri Total - Combined | Total | - | 7,000 | 1.55 | 351,000 | 1,561 | 1.55 | 78,308 |
¹ Columns may not total exactly due to rounding
² The Net Attributable resource is for illustrative purposes only and calculated by reference to Kolar Gold's equity interest in Geomysore, in compliance with the Note for Mining and Oil and Gas Companies 2009.
The information in this statement which relates Mineral Resource estimation and classification of Mineral Resources is based on information compiled by Mr Andrew Weeks who is a full-time employee of Golder Associates Pty Ltd, and a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Weeks has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2012 Edition). Mr Weeks consents to the publishing of Mineral Resources in the form and context in which it appears.
For further information, please visit www.kolar-gold.com or contact:
Kolar Gold Limited Cameron Parry (Chief Executive Officer) Luke Cairns (Executive Director)
| Tel: +44 (0) 207 397 2880
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WH Ireland Limited (Nominated Adviser) Tim Feather Ed Allsopp
| Tel: +44 (0) 113 394 6600
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Vicarage Capital Limited (Broker) Rupert Williams / Jeremy Woodgate
| Tel: +44 (0) 203 651 2911
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Tavistock (Financial PR) | Tel: +44 (0) 207 920 3150 |
Emily Fenton
GLOSSARY
"g/t" | grammes per tonne |
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"Indicated" | an 'Indicated Mineral Resource' is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed |
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"Inferred" | an 'Inferred Mineral Resource' is that the part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability. |
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"JORC" | the Australasian Joint Ore Reserves Committee Code |
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"kT" | thousands of tonnes |
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"resource" | the calculated amount of material in a mineral deposit, based on limited drill information. |