23 Aug 2010 10:20
OXUS GOLD PLC
Amantaytau Goldfields Exploration Update
London: 23rd August 2010 - Oxus Gold plc ("Oxus" or the "Company") today announces the first results from its exploration programme within the 192 sq km Project Territory of its 50% owned Amantaytau Goldfields ("AGF") joint venture in Uzbekistan.
A five year exploration programme has commenced, the objective being to accelerate the conversion of mineral resources to reserves and in so doing accelerate the preparation of further deposits for production, as well as to define new resources. AGF is targeting an increase in JORC classified gold reserves from the current 2.4 million ounces to over 7 million ounces as a result of the proposed five year exploration programme, after allowing for mining depletion. The total exploration potential (JORC and Soviet classified) at AGF is currently identified as approximately 24 million ounces of gold and 480 million ounces of silver.
The total budget for the five year programme is approximately $22 million, of which $2.5 million has been committed from current cash resources to be spent during 2010.
In accordance with Uzbek law AGF has the exclusive rights to explore and mine within the Project Territory, subject to the relevant operating permits. AGF has therefore applied for specific exploration licences within the Project Territory based on the detailed exploration work schedules for each of the deposits included in the overall programme. Work is currently being undertaken with the approval of The State Committee of Geology and Mineral Resources of the Republic of Uzbekistan pending the issuance of those licences.
As of the end of July, over 9,100m of trenching (163 trenches) has been carried out at Sarybatyr, Yasaul, Taskazgan and Nukrakon (formerly Vysokovoltnoye), of which over 5,500m have been mapped and sampled, and over 5,000 preliminary assay results already received (see NOTE below). This is already more than the 8,250m of trenching scheduled for 2010.
NOTE - The below intersection results are regarded as provisional, at this stage only 'indicative', and not yet subject to external umpire assay checks. Oxus has started working with Stewart Assay and Environmental Laboratories LLC to improve its QA/QC procedures and to put in place external controls at the AGF's laboratory facilities.
Sarybatyr: 81 trenches have been excavated (3,640m mapped and sampled) infilling between previously excavated Soviet trenches, so as to enable AGF to define the ore-zone outlines on surface, prior to commencement of pre-production RC drilling. The most significant trench intersections indicated to date are as tabulated below, confirming a number of zones of good width oxide mineralization, suitable for open pit mining and processing at the nearby Nukrakon heap-leach plant:
| Trench no | From (m) | To (m) | Interval (m) | Gold (g/t) | Accumulation (m*g/t) | |
| STR | 18 | 35.0 | 42.0 | 7.0 | 2.97 | 20.79 |
| STR | 18 | 49.0 | 54.0 | 5.0 | 3.98 | 19.90 |
| STR | 19 | 29.0 | 48.0 | 19.0 | 3.08 | 58.52 |
| STR | 33 | 43.0 | 60.0 | 17.0 | 2.56 | 43.52 |
| STR | 34 | 34.0 | 39.0 | 5.0 | 4.09 | 20.45 |
| STR | 36 | 40.0 | 47.0 | 7.0 | 5.69 | 39.83 |
| STR | 42 | 2.0 | 10.0 | 8.0 | 3.34 | 26.72 |
| STR | 43 | 102.0 | 116.0 | 14.0 | 1.76 | 24.64 |
| STR | 46 | 3.0 | 17.0 | 14.0 | 1.87 | 26.18 |
| STR | 47 | 0.0 | 11.0 | 11.0 | 1.92 | 21.12 |
| STR | 49 | 12.0 | 42.0 | 30.0 | 2.80 | 84.00 |
| STR | 50 | 43.0 | 62.0 | 19.0 | 1.48 | 28.12 |
| STR | 57 | 28.0 | 35.0 | 7.0 | 3.27 | 22.89 |
| STR | 72 | 7.0 | 16.0 | 9.0 | 3.11 | 27.99 |
| STR | 73 | 31.0 | 42.0 | 11.0 | 2.05 | 22.55 |
Yasaul: 17 trenches have been excavated (967m mapped and sampled) infilling between previously excavated Soviet trenches. Of results received to date, the most significant trench intersection indicated is as tabulated below:
| Trench no | From (m) | To (m) | Interval (m) | Gold (g/t) | Accumulation (m*g/t) | |
| Y | 6 | 108.0 | 116.0 | 8.0 | 2.45 | 19.60 |
Taskazgan: 26 trenches have been excavated (908m mapped and sampled) infilling between previously excavated Soviet trenches. Of results received to date, the most significant trench intersections indicated are as tabulated below:
| Trench no | From (m) | To (m) | Interval (m) | Gold (g/t) | Accumulation (m*g/t) | |
| TS | 15 | 0.0 | 9.0 | 9.0 | 2.81 | 25.29 |
| TS | 15 | 59.0 | 80.0 | 21.0 | 2.82 | 59.22 |
Further trenching is planned at both Yasaul and Taskazgan, which are both being explored for additional feed for processing at the nearby Nukrakon heap-leach plant.
Nukrakon (formerly Vysokovoltnoye): 39 trenches, outside the current OB7 open pit mining area, have been excavated (about 3,500m) and these are currently being mapped and sampled. Further trenching and structural interpretation is being proposed, together with the RC drilling of selected profiles.
The new Atlas Copco Explorac 220 reverse circulation ("RC") drill rig has now been delivered to the AGF mine and has been commissioned by Atlas Copco.
The first of seven deep holes to intersect mineralisation below and adjacent to the Amantaytau Severny underground mine, has been collared and predrilled to 160m depth using the Explorac RC rig. AGF's CS14 coring rig will continue this first hole targeting the interval below the existing Amantaytau Severny reserves between 500m and 900m below surface. A substantial consignment of core drilling equipment has also been shipped to the AGF mine, in advance of the deep hole drilling programme.
The Explorac RC rig has now moved down to Sarybatyr to commence Stage I of a programme to carry out pre-production RC drilling of the Sarybatyr oxides, and exploration of the underlying primary sulphide gold mineralisation.
Oxus has appointed Foraco International ("Foraco"), a major international drilling company, to manage its drilling operations at Amantaytau. Staff of Foraco have been on site during the the Explorac RC rig commissioning, have been preparing for both the RC and deep hole core drilling programmes, and will be supervising drilling operations fulltime, as well as helping with the training of local staff.
Richard Shead, Executive Chairman, commented: "Our 2010 exploration programme is underway and I look forward to keeping shareholders abreast of developments with progress reports once assays results are received. I am confident that this exploration plan will over time unlock substantial value for all Oxus and AGF stakeholders".
Additional information on drill rigs, drilling and Geographic Information System:
RC drilling
The pre-production RC drilling programme at Sarybatyr, has been prepared in conjunction with Wardell-Armstrong International ("WAI"), Oxus' independent mineral industry consultant. Stage I of the programme consists of 88 inclined RC holes (7,652m) along 10 profiles, with holes ranging from 40m up to 150m, averaging about 90m depth, and from -55 deg to vertical. The RC holes will test the current exploration block model, and hopefully improve the orebody definition and better define the transition between oxide and sulphide mineralisation. Metallurgical testwork will be carried out on selected holes, to determine the variation in gold recovery with depth. Deeper holes are targeted to intersect primary sulphide mineralisation, which will be evaluated in terms of deeper open pit mining, below the base of the currently envisaged oxide open pit. Stage I drilling is likely to be completed early October, and will be evaluated prior to progressing with the Stage II infill drilling programme.
Deep hole core drilling
WAI has also reviewed the proposed deep hole drilling programme about to start at Amantaytau Severny, with reference to the existing geological interpretation and model. Previous Soviet drilling included one single deep intersection 860m below surface, which intersected an average of 51.6 g/t gold over 8m (estimated true width 1.73m). The objective of the programme is to intersect mineralisation below and adjacent to the Amantaytau Severny underground mine, initially targeting the interval between 500m and 900m below surface, below the existing Amantaytau Severny reserves. The initial seven inclined holes total over 5,500m of drilling, but with each planned to have two wedged deflections, the total meterage will be closer to 6,400m. Holes are planned to be drilled at -60 deg to -69 deg.
GIS and Database Management System
Oxus and AGF have also taken the decision to establish a Geographic Information System ("GIS") together with a comprehensive mineral resource database for AGF's exploration area and contained deposits and occurrences. Oxus has appointed Aurum Exploration Services ("Aurum"), of Kells in Ireland, to provide Oxus with GIS specialists and geological staff. MapInfo and Discover 3D software is already installed on site, and Aurum are working alongside and training local AGF staff.
For further information, please contact;
Oxus Gold plc
Richard Shead /Richard Wilkins Tel: +44 (0) 207 907 2000
Fairfax I.S. PLC
Nomad & Broker
Ewan Leggat /Laura Littley Tel: +44 (0) 207 598 5368
Conduit PR Ltd
Ed Portman/Leesa Peters Tel: +44 (0) 207 429 6607