4 Oct 2013 07:00
Embargoed: 0700hrs 4 October 2013
Premier Gold Resources plc
("Premier Gold" or the "Company")
Operational Update
Premier Gold (AIM: PGR), the Central Asia-focused gold exploration and development company, provides an update on its operations at the Cholokkaindy gold licence in the Kyrgyz Republic.
Premier Gold's operational focus leading up to the 2013 field season was to carry out the necessary work to establish a maiden gold resource. In order to do so, the Company will need to assess the three dimensional picture of the mineralisation at Cholokkaindy through drilling; as well as conducting further trenching work and soil sampling to upgrade, extend and infill the known areas of mineralisation. By virtue of weather conditions in the Tien Shan mountain range, this exploration activity must be conducted outside of the peak winter months.
In preparation for drilling on the licence, a bulldozing process to provide access for a drilling rig was initiated during last year's field season. As a result of the transition in scale of the operations, including the use of heavy machinery, the Company announced last year that it had initiated a programme of deeper domestic stakeholder engagement at national and regional governmental levels; as well as with local communities. As a result of this programme, the Company believes it has full national and regional governmental support for the exploration and development of Cholokkaindy. The Company has, however, encountered resistance from factions of local gangs seeking to hold up the work programme at Cholokkaindy illegally. These gangs have sought to threaten and intimidate employees of the Company and its Kyrgyz contractors.
Notwithstanding Premier Gold's legal right to progress its work programme on Cholokkaindy, the Company's first priority is the safety of its employees and contractors. As such, the Company will not be able to commence fieldwork operations as originally intended and has been taking steps to resolve the situation in order to create a safe working environment for the progression of the work programme on the licence. The Company has been informed that the Deputy Prime Minister of the Kyrgyz Republic has been instructed by the Prime Minister to resolve the issue.
While it remains a possibility that Premier Gold may still be able to undertake a limited work programme prior to the end of the current year's weather window, as a result of the delay caused by the actions of local gangs, the Company cannot be certain that it will be able to safely achieve the operational objectives earmarked for the 2013 field season.
The Company will update shareholders with material developments as soon as appropriate.
Richard Nolan, CEO of Premier Gold, commented:
"The Company's primary objective is to resolve the local issues in order that activity on Cholokkaindy can commence safely, either before the first snow fall, or immediately at the outset of the next weather window beginning in Q2 next year. We are in regular contact with our representatives in the Kyrgyz Republic who are working with the government to resolve the issues. Premier Gold has repeatedly been impressed by the Kyrgyz government's encouragement of investment in the mining sector and we are confident that they are affording the Company all the necessary support required to resume activity as soon as possible.
In the meantime, our geological team continues to work on the refinement of geological data and the prioritising of drilling targets to ensure that Premier Gold is optimally positioned when the board determines it is safe to commence fieldwork operations."
Contacts:
Premier Gold Resources plc | |
Richard Nolan, CEO | 020 7953 4028 |
Sanlam Securities UK Limited (Nominated Adviser and Broker) | |
Lindsay Mair / Richard Goldsmith / Catherine Miles | 020 7628 2200 |
Vigo Communications | |
Ben Simons / Chris McMahon | 020 7016 9574 |
About Premier Gold Resources plc
Premier Gold Resources plc (AIM:PGR) is a gold exploration and development company listed on the London Stock Exchange. Premier Gold is focused on gold opportunities in Central Asia, in particular the Kyrgyz Republic, where the Company's current project, Cholokkaindy, is located.
Cholokkaindy is a 32 square kilometre licence area located in the northern Tien Shan, 20 kilometres south of Kara Balta and 80 kilometres southwest of Bishkek. Geological results from Premier Gold's work programme to date support the view that Cholokkaindy is one large mineralising system, displaying several key indicators associated with other large gold deposits in the northern Tien Shan metallogenic belt.
For further information please visit: www.premiergoldresources.com