Georgian Mining “it’s going to be very much larger and significantly more valuable” says SP Angel

SP Angel Conclusion on Georgian Mining:  This is a great drill result by any standards.  It is even better when combined with the gold oxide mineralisation immediately overlying the high-grade copper and given its close proximity to other mineralisation.  We look forward to further reports of high grade copper intersections and expect the team to start mining this year once details within the joint venture agreement are settled.  We knew Kvemo Bolnisi would become a mine, now it looks like it’s going to be very much larger and significantly more valuable.

 

(Kvemo Bolnisi 50:50 jv with CMG)

  • Georgian Mining report an ‘exceptional’ drill result with 16m of copper intersected grading 15.4% copper including a 5m section grading 40.5% copper.
  • These are the sort of results that make you sit up and take notice!
  • The report is to be followed up with a further press release on drill hole assays within the next week or so.
  • These are high grade results by any standards and their presence so close to surface ‘will’ result in the development of a copper, gold mine at the Kvemo Bolnisi site.
  • Moreover, the company is planning to start mining the gold oxide cap over this particular discovery this year meaning that the copper sulphide orebody should become exposed at the bottom of the gold oxide pit in due time.
  • The drill hole also shows continuous gold mineralisation from surface to the base of the oxides at 47m including 24m grading 1.58g/t from 1m below surface.
  • The high grade mineralisation is copper bearing chalcocite (copper sulphide normally ~80% cu*) and cuprite (copper oxide normally ~66% cu*).
  • Recent work indicates the chalcocite blanket ‘can extend the mineralised package widths’ by >100m.
  • The company has already defined a modest JORC resource of 2.2mt grading 0.8% copper and 0.1g/t gold at a 0.3% copper cut-off grade.  This should get much larger.
  • The scale of the Kvemo Bolnisi project is estimated to be around 1km x 1.5km giving a reasonably large potential tonnage once sufficient drilling is done to define mineralisation within this area.
  • The JORC resource ‘will’ be extended towards the company’s revised target for a 50mt copper, gold resource.
  • The team are currently investigating  Gold Oxide Zone 1, Gold Oxide Zone 2 and a Copper Sulphide Zone.
  • There is anecdotal evidence that the nearby Madneuli copper gold mine also recovered high grade ores through its long history.
  • Georgian’s joint venture partner runs this ageing mine and is keen to utilise ores from their joint venture with Georgian Mining to better utilise the Madneuli plant.
  • Drill results are being processed at CMGs lab locally with a 48hr turnaround with duplicates sent to an ALS lab for authentication.  The turnaround with the ALS lab takes longer at around a week.
  • The company are including photographs of the core to give investors a better idea of what the drillers and geological team are looking at.  We think this is a good idea as it helps to get more information into the market more quickly.
  • Previous Soviet-style drilling is said to show a large copper resource from around 400m relatively close to today’s drill results.
  • The team are currently working through the results of metallurgical test work on ores from the Kvemo Bolnisi site.  The team need to present the metallurgical results before details within the joint venture agreement are settled though we believe the framework has been in place for some time and we expect arrangements to be completed soon.

 

*SP Angel acts as Nomad and Broker to Georgian Mining.  + SP Angel estimates of copper typically contained within Chalcocite and cuprite minerals

Georgian Mining Kvemo Bolnisi Diamond Drillhole TGD-044 Notable Mineralised Intercepts:

 

From (m)

To (m)

Interval (m)

Cu%

Au gt

 

Ag gt

1.00

25.00

24.00

1.58

30.00

46.00

16.00

0.71

47.00

63.00

16.00

15.40

0.30

19.56

Including:

 

 

 

 

 

53.05

58.00

4.95

40.50

0.46

55.60

72.00

90.00

18.00

0.88

99.00

102.00

3.00

0.44

110.00

119.00

9.00

0.51

 

DISCLAIMER

This note has been issued by SP Angel Corporate Finance LLP (“SP Angel”) in order to promote its investment services.

This information is a marketing communication for the purpose of the European Markets in Financial Instruments Directive (MiFID) and FCA’s Rules. It has not been prepared in accordance with the legal requirements designed to promote the independence or objectivity of investment research.

This document is not based upon detailed analysis by SP Angel of any market; issuer or security named herein and does not constitute a formal research recommendation, either expressly or otherwise.

The value of investments contained herein may go up or down. Where investment is made in currencies other than the base currency of the investment, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Securities issued in emerging markets are typically subject to greater volatility and risk of loss.

This note is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published in whole or in part, for any purpose.

Neither the information nor the opinions expressed herein constitutes, or is to be construed as, an offer or invitation or other solicitation or recommendation to buy or sell investments. This information is for the sole use of Eligible Counterparties and Professional Customers only and is not intended for Retail Clients, as defined by the rules of the Financial Conduct Authority (“FCA”) and  subject to SP Angel’s Terms of Business as published or communicated to clients from time to time.

It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. This document should not to be relied upon as authoritative or taken in substitution for the exercise of you own commercial judgment. SP Angel is not responsible for any errors, omissions or for the results obtained from the use of the information in this document.

This document has been prepared on the basis of economic data, trading patterns, actual market news and events, and is only valid on the date of publication. SP Angel does not make any guarantee, representation or warranty, (either expressly or implied), as to the factual accuracy, completeness, or sufficiency of information contained herein. This document has been prepared by the author based upon information sources believed to be reliable and prepared in good faith.

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SP Angel Corporate Finance LLP is a company registered in England and Wales with company number OC317049 and whose registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP.  SP Angel Corporate Finance LLP  is authorised and regulated by the Financial Conduct Authority whose address is 25, The North Colonnade, Canary Wharf, London E14 5HS and is a Member of the London Stock Exchange plc.

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