Further Drill Results from KB East Gold Zone 2

RNS Number : 1152E

Georgian Mining Corporation

04 May 2017

 

04 May 2017

Georgian Mining Corporation

Further Drill Results from Kvemo Bolnisi East Gold Zone 2 Target

Georgian Mining Corporation ('GEO' or the 'Company') is pleased to announce further results from the drill programme currently underway to establish an initial resource at Gold Zone 2, one of three targets currently being developed at Kvemo Bolnisi East ('KB').  The results of the drilling programme further support GEO's belief that the three zones currently being targeted at KB (Copper Zone 1, Gold Zone 1 and Gold Zone 2) are part of one large epithermal copper/gold unit.

The drill programme at Gold Zone 2, including today's latest results, is providing a suite of positive gold ('Au') intersections which are expected to generate an additional gold oxide Resource.  This resource, together with the copper resource already reported, will be used for proof of concept heap leaching at one of two nearby heap leach operations owned by the Company's JV partner, which is expected to further de-risk KB. 

·     Selected Au intercepts include:

o  TGD-015: 10m @ 6.36g/t Au from 8.0m

o  TGD-026: 10m @ 0.90g/t Au from 10.0m

o  TGD-030: 6.0m @ 1.55g/t Au from 0.0m

o  TGD-034: 30.6m @ 1.31g/t Au from 1.0m

o  TGD-036: 1.0m @ 6.17g/t Au from 3.0m

o  TGD-037: 6.0m @ 4.63g/t Au from 5.0m

o  TGD-038: 25m @ 2.71g/t Au from 0.0m

o  TGD-045: 17m @ 0.8g/t Au from 24m

In addition to delineating gold oxide mineralisation, this programme has discovered an extension of the copper - gold sulphide mineralisation initially found to the south of Gold Zone 2 with significant copper intercepts commencing from the base of the gold oxide zone. The ongoing Resource development programme will continue to build a gold oxide Resource but, the discovery of underlying copper-gold sulphide mineralisation warrants testing both the depth of this new copper discovery and whether the gold oxide and copper-gold sulphide mineralisation extends to the south and may potentially link up with the  copper-gold JORC Resource announced in early April 2017. Many of the holes intersecting copper sulphides below the gold oxides were stopped in mineralisation and so this new zone of copper-gold sulphides is open at depth as well.

·     Selected copper ('Cu') intercepts include:

o  TGD-038: 34m @ 1.54% Cu from 56m

o  TGD-041: 19m @ 1.1% Cu from 34m

o  TGD-045: 17m @ 0.95% Cu from 24m

Further announcements will be made as additional gold and copper assay results are received from the external laboratory over the next few weeks.  When sufficient data has been accumulated, the Company will complete a JORC Resource estimate for Gold Zone 2 and an updated Copper Zone JORC Resource estimate that will include the latest intersections.

GEO Managing Director Greg Kuenzel said, "The results from these 30 drill holes support our view that the three zones currently being targeted at KB are part of a much larger mineralised system. We have proven that gold mineralisation amenable to heap leach processing is present from surface to the base of oxidation down to 70m depth. Now we have also discovered a new copper sulphide mineralisation directly beneath the gold oxides. We anticipate being able to mine and treat the gold oxides which will expose the underlying copper sulphides, as we establish that the KB resources are part of a large epithermal copper-gold deposit."

This campaign focused on the gold oxides is ongoing in parallel with Resource development drilling of Copper Zone 1, where the Company recently announced a JORC compliant resource estimate of 2.22 million tonnes @ 0.8% Cu and 0.1 g/t Au at a 0.3% Cu cut-off. 

Further Resource development will continue at KB with testing of possible extensions to gold oxide mineralisation to the north and northeast and testing for further copper sulphide mineralisation beneath the oxides. There are also indications from channel sampling and soil geochemistry that the original Copper Zone discovery and the latest intersections at Gold Zone 2 may be joined at depth and part of a much larger mineralised system. This will also be tested with further drilling to unite the two mineralised bodies.

Table 1: Gold Intersections for KB Gold Zone 2 Drill Programme

ID	From (m)	To (m)	Interval (m)	Au gt
TGD001	1.00	8.00	7.00	0.71
TGD001	16.00	19.20	3.20	0.55
TGD002	5.00	19.20	14.20	2.00
TGD003	8.00	20.00	12.00	1.29
TGD004	9.50	12.30	2.80	0.27
TGD004	17.00	19.00	2.00	0.43
TGD005	no significant intervals
TGD006	0.00	20.00	20.00	0.74
TGD007	0.00	20.00	20.00	2.20
TGD008	0.00	18.00	18.00	0.73
TGD009	0.00	4.00	4.00	1.07
TGD010	8.80	15.00	6.20	1.30
TGD011	0.00	20.00	20.00	0.63
TGD012	5.70	9.60	3.90	0.35
TGD013	0.00	20.00	20.00	0.22
TGD014	0.00	4.00	4.00	0.87
TGD014	11.00	13.20	2.20	0.35
TGD015	8	18	10	5.36
TGD016	0	3	3	0.2
TGD016	8	11	3	0.27
TGD017	0	3	3	2.04
TGD017	10	11.7	1.7	1.24
TGD017	17	19	2	0.18
TGD018	0	2	2	0.15
TGD019	4	8	4	0.53
TGD019	11	13	2	0.7
TGD019	15	20	5	0.93
TGD020	3	11	8	0.27
TGD021	4	17	13	0.25
TGD022	0	2	2	0.38
TGD022	14.2	19	4.8	0.31
TGD023	4	20	16	0.68
TGD024	4	7	3	0.37
TGD025	1	11.2	10.2	0.54
TGD026	0	7	7	0.2
TGD026	10	20	10	0.89
TGD028	no significant intervals
TGD029	no significant intervals
TGD030	0	6	6	1.55
TGD030	16	27	11	0.29
TGD031	8	18	10	0.18
TGD031	19	23.7	4.7	0.6
TGD031	27	33	6	0.85
TGD031	34.9	56	21.1	0.14
TGD032	2	21	19 0	0.74
TGD033	5	21	16	0.27
TGD033	21	30	9	0.57
TGD033	37	49	12	0.5
TGD033	50	70	20	0.23
TGD034	1	31.6	30.6	1.31
TGD035	15	16	1	0.43
TGD036	3	4	1	6.17
TGD037	5	11	6	4.63
TGD038	0	25	25	2.71
TGD038	37	46	9	0.52
TGD039	Not sampled
TGD040	0	52	52	0.65
TGD042	6	8	2	1.19
TGD043	Results Pending
TGD044	1	25	24	1.58
TGD044	30	46	16	0.71
TGD044	47	63	16	0.30

Table 2: Copper Intersections for KB Gold Zone 2 Drill Program

ID	From (m)	To (m)	Interval (m)	Cu (%)
TGD004	9.50	12.30	2.80	0.45
TGD011	0.00	20.00	20.00	1.13
TGD015	8	18	10	0.65
TGD031	34.9	56	21.1	0.15
TGD032	2	21	19 0	0.25
TGD032	38	57	19	0.19
TGD032	79	91	12	0.40
TGD034	52	75	23	0.4
TGD038	0	25	25	0.16
TGD038	25	47	22	0.23
TGD038	56	90	34	1.54
TGD038	100	111	11	0.84
TGD041	34	53	19	1.10
TGD044	47	63	16	15.36
TGD044	72	90	18	0.88
TGD044	99	102	3	0.44
TGD044	110	119	9	0.51

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

For further information please visit www.georgianmining.com  or contact:

Greg Kuenzel	Georgian Mining Corporation	Company	Tel: [phone]
Ewan Leggat	S. P. Angel Corporate Finance LLP	Nomad & Broker	Tel: [phone]
Damon Heath	Shard Capital Partners LLP	Joint Broker	Tel: [phone]
Elisabeth Cowell	St Brides Partners Ltd	PR	Tel: [phone]

Competent Person Statement

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by James Royall, who is a Member of the Australian Institute of Geoscientists.

James Royall has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and as a qualified person as defined in the Note for Mining and Oil & Gas Companies which form part of the AIM Rules for Companies.   James Royall has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

About Georgian Mining Corporation

Georgian Mining Corporation has 50% ownership and operational control of the Bolnisi Copper and Gold Project in Georgia, situated on the prolific Tethyan Belt, a well-known geological region and host to many high grade copper-gold deposits and producing mines.  The Bolnisi licence covers an area of over  860 sq km and has a 30 year mining licence with two advanced exploration projects; Kvemo Bolnisi and Tsitsel Sopeli.  These projects are proximal to existing mining operations which are owned by the Company's supportive joint venture partner.  Georgia has an established mining code and is a jurisdiction open to direct foreign investment.

The Company is developing the project in three phases:

·     Phase 1: H1 2017 target to delineate a minimum of 1-2 Mt to support initial spare capacity (now achieved and exceeded)

·     Phase 2: 2017 target to delineate a 3-5 Mt resource of combined copper-gold sulphide and gold oxide mineralisation (on target)

·    Phase 3: Long term target - to delineate a resource of 50Mt+

 

END

 

 

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