Lionsgold Regulatory News (LION)

15 September 2015

Kolar Gold Limited

Statement re. media reports

Kolar Gold Limited (AIM: KGLD) ("Kolar" or "the Company"), the Indian focused gold exploration and mine development company, notes media reports regarding an Indian Ministry of Mines interview in which it is reported that the Ministry intends to auction licences for gold lease areas across the country in the near-term. Some media reports specifically refer to the BGML Mine located in the Kolar Gold Fields in the state of Karnataka, India.

Kolar continues to pursue its proposed acquisition, jointly with the BGML Mine ex-employee united unions, to revive the historic BGML Gold Mine as previously communicated. 

To date the Company has not received any communication from the Indian Ministry of Mines in relation to the media reports. Kolar will provide updates to shareholders in line with formal statements from the Indian Ministry of Mines as appropriate.

For further information please contact: 

About Kolar Gold Limited:

Kolar Gold is a partner and investor in an Indian gold exploration and mine development company and is also pursuing a number of gold projects in India. The company is traded on the AIM market (Ticker: KGLD) and has an experienced international board and management and strong local partners.

Kolar Gold is an investor in GMSI, an Indian gold exploration and development company with a significant portfolio of gold permits and rights across India. GMSI has rights to 32 known gold mineralised project areas including 22 granted Reconnaissance Permits, 2 Prospecting Licences and 1 mining lease area covering a total of 12,568 square kilometres in the states of Andhra Pradesh, Karnataka. Madra Pradesh and Tamil Nadu. The main gold asset is the gold mining lease at Jonnagiri which was granted in October 2013 and has a 710,000 ounce JORC gold resource defined to date.

Kolar Gold is also jointly pursuing, with the BGML mine employee unions, the acquisition and revival of the historic BGML gold mine in the Kolar Goldfields in Karnataka. The BGML gold mine has produced 25 million ounces of gold at 15.9 grams per tonne over 120 years until its closure in 2001. The Kolar Goldfields is one of the most prospective underdeveloped Archaean Greenstone Belts in the world and is regarded by Mr Andrew J Vigar of Mining Associates Limited, the Competent Person, as comparable to the Archaean Greenstone Belts of South Africa, Canada and Western Australia which have similar geology, structure and style of mineralisation.