Last checked at 10 Oct 2011 07:00
10 October2011
Ovoca Gold Plc ("Ovoca" or the "Company")
Russian regulatory authorities issue certificate of discovery for Olcha
Ovoca is pleased to announce that the Russian State regulatory body concerning the certification of state resources has granted to the Company a Certificate of Discovery regarding Olcha, a key milestone in the process of receiving a full exploitation license. The Certificate allows the Company, through its Russian ZAO Bulun subsidiary, to apply for a mining permit on the presently drilled reserves. Such licenses are typically issued for 25 years, with a target work program leading up to production at some point within the license term. The certified reserves equal 279,000 ounces of gold at a grade of 13.4 g/t and 655,000 ounces silver at a grade of 31.6 g/t in the Russian reserve category C1 + C2 (this is not JORC compliant and not reviewed by a Competent Person).
Russian legislation does not consider the Olcha deposit strategic as it is below the established strategic threshold of 1.6mn ounces gold in the Russian reserve C1 + C2 category.
Tim McCutcheon, CEO, comments: "We are all extremely pleased with the issue of the Certificate of Discovery for Olcha. As I have mentioned before, Ovoca has a long and successful track record of working in Russia to get things done and add shareholder value. Now that we have the Certificate, we will immediately complete and file the formal application to receive the full exploitation license, which we expect to receive sometime early 2012."
Notes to Editors
Ovoca Gold PLC ("Ovoca" or "the Company") is a mineral exploration and mine development company listed on the AIM market of the London Stock Exchange (Ticker: OVG) and on the ESM market of the Irish Stock Exchange (Ticker: OVX). The Company's principal activity is gold exploration in the Magadan Region of the Russian Federation. Previously Ovoca acquired, developed and sold to JSC Polymetal the Goltsovoye silver project located in the Magadan Region. Currently, Ovoca is aggressively exploring and developing its 100 per cent owned Stakhanovsky, Rassoshinskaya and Nevsko-Pestrinskoye licenses.
Stakhanovsky is located approximately 40 kilometres north of Susuman, the second largest city in the Magadan region. It is accessible by year-round road and there is power infrastructure on site. Stakhanovsky's initial independently established resource was announced in an RNS on 2 February 2011 and is available on the Company's website. The Company intends to put Stakhanovsky into production by 2013.
Rassoshinskaya is in the North Eastern part of the Magadan Region about 200 kilometres from the town of Seimchan. There is no nearby infrastructure. Rassoshinskaya hosts an epithermal gold deposit named Olcha, which is the focus of Ovoca's exploration program. Olcha and nearby satellite deposits have the potential to host a high grade multi-million ounce gold resource. Olcha's latest independently established resource was announced in an RNS on 07 July 2010 and is available on the Company's website. Rassoshinskaya also hosts several gold targets, including Podgorniy and Zet.
Ovoca Gold Plc
Timothy McCutcheon +7 495 916 6029 tim.mccutcheon@ovocagold.com
Davy - NOMAD and joint broker
John Frain +353 1 679 6363
Fairfax I.S. PLC - joint broker
Ewan Leggat/Laura Littley +44 207 598 5368