Georgian Mining LON:GEO Managing Director Greg Kuenzel said this morning, “Together with the initial Mineral Resource estimate of 2.29Mt @ 0.85g/t Au, including an optimised In-Pit Mineral Resource of 1.14Mt @ 1.10g/t Au, we recently announced for the gold oxide deposit at GZ2, the discovery of the new breccia pipe at GZ2 has pushed us closer to the Phase 2 target of a 5Mt optimised in-pit combined gold-copper Mineral Resource within the KB project area during 2017. The copper mineralisation is augmented by a gold ‘kicker’ that in some cases is as high as 0.5g/t Au which will also report to the final copper-gold concentrate as a credit and add significant value.
“The Company has allocated funds to test the depth extension of the two breccia pipes at GZ2 and CZ1, as the low to intermediate sulfidation epithermal environment that characterises Kvemo Bolnisi has the potential to “blow-out” at depth and contribute to a more substantial bulk tonnage copper-gold resource in line with the 50Mt being targeted by the Company. Further gold oxide and copper-gold sulphide targets are regularly being generated and, as previously announced, additional anomalies and drill targets have already been defined. These will be drilled during the current programme as we continue to expand the Kvemo Bolnisi Mineral Resource development strategy.”
Georgian Mining Corporation LON:GEO has announced today a 41% tonnage increase in the global In-Pit Optimised constrained copper-gold sulphide Mineral Resource for the Kvemo Bolnisi Project (‘KB’) to 1.7Mt @ 1.05% Cu from 1.2Mt @ 1.03% Cu.
This upgrade was based upon the recently discovered breccia pipe situated beneath the base of the gold oxide mineralisation at Gold Zone 2 (‘GZ2’), one of three zones currently being developed at KB which may form one large epithermal copper-gold system. A three phase programme is underway to deliver a total resource in excess of 50Mt at KB, which is located in an established copper-gold region in Georgia along the highly prospective Tethyan Belt.
— Increased In-Pit optimised constrained copper-gold sulphide Mineral Resource of 1.7Mt @ 1.05% Cu (from 1.2Mt @ 1.03%) comprises:
Tonnage Average Copper Average Gold
(kt) Grade (t) Grade (oz)
(% Cu) (g/t
Au)
------------------ -------- -------- ------- -------- -------
Indicated 101 0.45 0.50
------------------ -------- -------- ------- -------- -------
Inferred 1,607 1.09 0.13
------------------ -------- -------- ------- -------- -------
Total (Indicated
& Inferred) 1,708 1.05 17,934 0.20 11,100
------------------ -------- -------- ------- -------- -------
— The In-Pit constrained Mineral Resource has been derived from a global Mineral Resource estimated in accordance with the guidelines of the JORC Code (2012) of 3.154Mt @ 0.82% Cu & 0.14g/t Au (from 2.22Mt @ 0.8% Cu and 0.1 g/t Au )comprises:
Tonnage Average Copper Average Gold
(kt) Grade (t) Grade (oz)
(% Cu) (g/t
Au)
------------------ -------- -------- ------- -------- -------
Indicated 101 0.50 0.50
------------------ -------- -------- ------- -------- -------
Inferred 3,053 0.83 0.13
------------------ -------- -------- ------- -------- -------
Total (Indicated
& Inferred) 3,154 0.82 25,860 0.14 14,430
------------------ -------- -------- ------- -------- -------
— The In-pit parameters to constrain the optimised Mineral Resource were produced in-house and are based on mining, haulage and processing costs provided by the Company’s local partner, a 5% dilution factor, a production rate of 60Kt per month, a 10% discount rate and a long-term copper price of $6,000 per tonne of copper metal. The cut-off grades used are 0.3% Cu and 0.3g/t Au
— Upgraded Mineral Resource now includes two separate high-grade copper-gold breccia pipes at Copper Zone 1 (“CZ1”) and GZ2 – See Image 1
— Significant scope for further upgrades to the Mineral Resource as the GZ2 pipe is close to surface, extends to a depth of 200m and remains open at depth – additional drilling to commence in the coming weeks. The CZ1 breccia pipe also remains open at depth.
