Statement on reserves

30 Nov 2006 07:01

Oxus Gold PLC30 November 2006 news release For release: 30 November 2006 Oxus Gold plc Mineral Resources and Ore Reserves Statement at 30 June 2006 LONDON: 30 November 2006 - Oxus Gold plc ("Oxus" or the "Company") is pleased tostate an increase in JORC classified gold and silver Mineral Resources and goldOre Reserves at Amantaytau Goldfields and report on its Mineral Resources andOre Reserves statement as at the end of the Company's financial year. The Ore Reserves show an overall increase in gold of 41,000 ounces as comparedto the previous year. Significantly, this is in addition to the 146,937 ouncesof gold mined during the year, hence the Ore Reserve ounces have beenreplenished in excess of the rate of mining by the conversion of MineralResources. Measured plus Indicated Mineral Resources have increased substantially by743,000 ounces of gold and 14.48 million ounces of silver. This increaseprovides a further platform for the Company's growth potential as it continuesto convert resources into reserves for future mining. Inferred Mineral Resourceshave also increased substantially by 650,000 ounces of gold and 7.79 millionounces of silver, and are planned to be upgraded by further explorationactivity. During the year, 37,196 metres of exploration and development RC drilling, 942metres of core drilling and 585 metres of trenching was completed on a number ofdeposits of the AGF licence area. On the basis of this new information, enhancedby data entry of Uzbek/Soviet sourced exploration results, resource modelling of3 gold deposits at AGF has been completed. In addition, satellite basedstructural and alteration interpretation of the AGF licence area has defined newoxide targets. Significantly, Oxus has evaluated a number of deeper sulphideextensions to the oxide pits and has increased the future growth potential ofthe company. The main Group changes occurred at Amantaytau Goldfields (AGF - 50% Oxus),where; • Attributable Measured plus Indicated Mineral Resources within the AGF licence area increased by 743,000 ounces to 2.49 million ounces of gold and silver increased by 14.48 million ounces to 19.33 million ounces, and attributable Inferred Resources increased by 650,000 ounces to 1.19 million ounces of gold and silver increased by 7.79 million ounces to 8.02 million ounces. • Attributable Ore Reserves within the AGF licence increased by 41,000 ounces to 1.47 million ounces of gold and silver decreased by 939,000 ounces to 3.67 million ounces. The changes at AGF described above in terms of the JORC Mineral Resources andOre Reserves were; • Following exploration and remodelling, the oxide Measured plusIndicated Mineral Resources increased by 5.0 million tonnes containing areduction of 42,000 ounces of gold and an increase of 1.48 million ounces ofsilver, and the Inferred Mineral Resource increased by 1.38 million tonnescontaining 31,000 ounces of gold and 274,000 ounces of silver; • Following exploration of open pitable sulphide mineralisation belowthe existing oxide resources and the reduction in cutoff grade at Amantaytau thesulphide Measured plus Indicated Mineral Resources increased by 26.9 milliontonnes containing 1.53 million ounces of gold and 27.47 million ounces of silverand the Inferred Mineral Resource increased by 21.1 million tonnes containing1.27 million ounces of gold and 15.3 million ounces of silver; • Following mining depletion, orebody remodelling and block modeladjustment as a result of grade control the Carbon-In-Pulp Plant (CIP) and HeapLeach Ore Reserves reduced by 1.72 million tonnes containing 297,000 ounces ofgold and 1.88 million ounces of silver. The remaining CIP ore is at a loweraverage grade of 1.56g/t gold compared with 2.09g/t gold reported previously,and the average heap leachable silver grade dropped to 43.70g/t, from the 68.37g/t previously reported; • Sulphide Ore Reserves increased by 4.24 million tonnes containing378,000 ounces of gold as a result of a reduced cut-off grade to 3.5g/t goldcalculated for the new Amantaytau underground mine design, with a resultantgrade of 7.71g/t gold compared with 11.54g/t gold reported previously. Subject to licence approvals at Ayirak and Tamdy areas in Uzbekistan andinternational arbitration at Jerooy, Kyrgyzstan; • The Company's attributable JORC compliant Mineral Resources (Measured plus Indicated) are 41.69 million tonnes at 2.96g/t gold and 14.42g/t silver for 3.97 million ounces of gold and 19.33 million ounces of silver, and Inferred Resources are are 32.96 million tonnes at 2.53g/t gold and 7.57g/t silver for 2.68 million ounces of gold and 8.02 million ounces of silver. • The total attributable JORC compliant Ore Reserves (Proven plus Probable) for the Company are 18.91 million tonnes at 4.18g/t gold and 6.03g/t silver for 2.54 million ounces of gold and 3.67 million ounces of silver. • The total attributable JORC compliant Exploration Results for the Company are 4.01 million ounces of gold and 36.40 million ounces of silver. • In addition to the JORC resources, the attributable Soviet classified P1 category is 5.22 million ounces of gold and 158.91 million ounces of silver, and Soviet P2 category is 6.93 million ounces of gold and 25.11 million ounces of silver, which will be future targets for conversion to JORC classified resources A detailed listing of results of all the exploration work carried out during theyear will be presented on the Company's website (www.oxusgold.co.uk), includingexploration drillhole results, the exploration trenching methodology andresults. In addition, an explanation of the resource classifications used willalso be presented. It is the intent of the company to continue to define additional resources andto upgrade the existing resources for conversion into reserves, with the aim toassess the potential to extend or increase ore throughput at AGF's existing CIPprocess plant. The possibility of further heap leach units to exploit lowergrade oxide material is also under consideration. As part of the Group's long term exploration strategy, cost effective valueadded exploration programmes are envisaged. Core drilling will be utilised forspecific projects such as deep sulphide drilling, Amantaytau sulphide "superpit"evaluation, geotechnical and metallurgical drilling. Oxus intend to continueadvancing the exploration of the AGF licence area to evaluate the remainingtargets in order to define the upside potential and develop a robust futuremining plan. The current Oxus Group's resources and reserves are summarized below. A detailed exploration year end report including the detailed tabulation ofresources and reserves will also be presented on the website. The resources and reserves are stated in accordance with the AIM Guidance forMining, Oil and Gas Companies for reporting, and adopt the "JORC Code"(Australasian Code for Reporting of Exploration Results, Mineral Resources andOre Reserves prepared by the Joint Ore Reserves Committee) classification aswell as the Russian system of classifying resources and reserves whereapplicable. In accordance with the rules, the total project and Oxusattributable ounces of gold and silver are presented. The resources and reserves stated in this report have been compiled by thefollowing Competent Persons: P S Newall, BSc, ARSM, PhD, CEng, FIMMMWardell Armstrong International Ltd P Newall, is Senior Consulting Geologist and Director with WAI and has practicedhis profession as a mine and exploration geologist for over twenty years forboth base and precious metals. Stephen John Westhead, BSc, MSc, PhD, CGeol, FGS, MIMM Steve Westhead is the Oxus Gold plc group Chief Geologist, has over 17 yearsexperience in the exploration and mining industry, with experience in Europe,India, and Central Asia. Following PhD graduation, he worked in India for 4years and was a founder member of Fluor Daniel India, Stephen has been employedwithin the Oxus Group since 1997. Gordon Wylie BSc (Hons) Geology, MAusIMM, FGSSA Gordon Wylie is a consultant and non-executive Director of Oxus Gold plc. Gordonhas over 30 years experience in the mining and exploration industry. From 1998to 2005 Gordon was in charge of AngloGold and latterly, AngloGold Ashanti'sglobal exploration programme and was appointed Executive Officer in early 2004. William J Charter, BSc, CGeol, FGS, CEng, MIMM Bill Charter has over 28 years experience in mining and exploration industry.Having gained experience with Anglo American Corporation (in Fiji and SouthAfrica), then worked in Central Asia and other locations worldwide. Started workwith the Oxus Group in 1996. In November 2003 was appointed as TechnicalDirector of Marakand Minerals Limited, also acting as Geological Consultant toMarakand's parent company Oxus Gold plc. To view the tables showing Oxus Gold PLC's Precious Metal Resources as of 30thJune 2006, please click on the link below: http://www.rns-pdf.londonstockexchange.com/rns/9605m_-2006-11-29.pdf This information is provided by RNS The company news service from the London Stock Exchange