SP Angel Conclusion on Georgian Mining LON:GEO: The Kvemo Bolnisi project is rapidly developing into a larger scale mineral resource. The project benefits from its proximity to the Madneuli gold mine which we believe should have spare processing capacity for copper and gold. Management are working through the finer details of the joint venture agreement for the processing of ore at the Madneuli plant and we expect mining to start within months once there is sufficient drilling to work out an optimal pit design.
- Georgian Mining continue to deliver great grades in drilling at the Kvemo Bolnisi project in Georgia, Eastern Europe.
- Today’s press release shows very good gold results in drilling over relatively long intersections from surface and remarkably close to surface.
- Good copper grades are also evident relatively close to surface underlying the gold oxide zone starting at just 24m depth.
- In a world where grades of >0.3% copper for near surface open cast mining are generally considered to be economic, particularly when a process plant is already in place then the identification of 0.95% copper over 17m followed by 19m at 1.1% copper and 34m at 1.54% looks like a good start for a more sizeable open cast copper mine.
- The numbers speak for themselves.
- Gold oxide, selected intersections:
- TGD-015: 10m @ 6.36g/t Au from 8.0m
- TGD-026: 10m @ 0.90g/t Au from 10.0m
- TGD-030: 6.0m @ 1.55g/t Au from 0.0m
- TGD-034: 30.6m @ 1.31g/t Au from 1.0m
- TGD-036: 1.0m @ 6.17g/t Au from 3.0m
- TGD-037: 6.0m @ 4.63g/t Au from 5.0m
- TGD-038: 25m @ 2.71g/t Au from 0.0m
- TGD-045: 17m @ 0.8g/t Au from 24m
- Copper, selected intersections and grades
- TGD-038: 34m @ 1.54% Cu from 56m
- TGD-041: 19m @ 1.1% Cu from 34m
- TGD-045: 17m @ 0.95% Cu from 24m
- We should note that there are plenty of lesser grades in other drill holes shown in the company statement which might serve to reduce the grade of the overall resource, but there appear to be sufficient intersections of grade in these to carry the development of a new mine at the Kvemo Bolnisi site at a larger scale than was previously envisaged.
- The data will be used to formulate a maiden JORC resource for the gold oxide zone and to update the JORC resource on the copper orebody below.
*SP Angel acts as Nomad and Broker to Georgian Mining.
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