Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") hereby provides an operational update of the Krasny project.
- An Expansion drilling program was commenced on December 14, 2015 and finalized on February 25, 2016. In total, 16 drill holes were completed, accounting for 3,504 meters of core drilling. So far, 3,385 fire assay tests for gold have been received. The final assay results are expected in early March 2016.
- Following the results of the Processing test released on December 2, 2015, a second Metallurgical processing test for oxidized ore was commenced in January 2016 based on new samples. The test is still on-going, with completion scheduled for March 2016. The interim results from the renewed processing test follow the December results for Oxidized ore.
- A Pre-Feasibility study was commenced in February 2016. The Russian Engineering consultancy company Irgiredmet was chosen to draft the detailed Scoping study for the Krasny project. The Report will be finalized in March 2016.
- The Russian reserve report was submitted to the Russian authorities on December 28, 2015. It has now been reviewed by experts appointed by the GKZ authorities in Irkutsk, and returned with some comments and recommendations. The revised report will be re-submitted shortly, and the approval is expected during March 2016.
- The drafting of a JORC report was started in November 2015, and is currently under way. The final report is expected during March 2016.
This operational update further develops the information provided in press release 21/2015, dated December 2, 2015 and press release 22/2015, dated December 9, 2015.
Exploration results
By February 25, 2016, all drilling operations from the Expansion drilling program were completed, totaling 16 drill holes and 3,504 meters of core drilling (see Figure 3 in Attachment 1 for location of the drill holes). The majority of assay tests have been received and based on these 3,385 assay tests, we were able to delineate the extension of the upper mineralization within the Krasny deposit along the strike. Although the gold mineralization continues further to the West and to the East beyond the drill profiles #35 and #59 respectively, the grade is falling below the cut-off.
Based on the interim drill results, a decision was taken to substitute the drilling of 4 drill holes along profile #58, for the drilling of 2 holes in profiles #46 and #48 instead. These holes were the first two drill holes targeting the lower mineralization drilled under the Joint Venture and since year 2013. The idea to test the lower mineralization was based on the financial modelling after receiving the Stage 2 exploration results, since the Lower Mineralization cautiously appeared to be minable with some assumptions. Cross section along Profile #46, hole 141755, is attached in Figure 4, Attachment 1, where we see 111 meters interval with average grade 2.54 g/t starting from the depth 264 meters. Assays from the hole #141745, Profile# 48, are still in the lab.
During December 2015 - February 2016, a second mineral processing test for the oxidized part of the Upper mineralization on Krasny has been performed based on new samples. The aim of this processing test is to confirm the previous result of 75% recovery from the oxidized ore, which was released on December 2, 2015. The test is still on-going and scheduled for completion in March 2016, but intermediary results confirm a recovery not lower than 75%, and potentially slightly better.
In December 2015, we commenced technological mapping of the Upper mineralization within Krasny, in order to identify the exact boundary between the oxidized and primary ores. This boundary is essential in order to split the total volume of rock into oxidized, partially oxidized and primary categories for detailed modelling of production scheduling and economic results. Although the oxidized ore represents only a minor part of the total ore resources of the Krasny deposit, it is located on the top of the deposit and will be the first ore to be produced. The interim results confirm that the volume of the oxidized ore with the assumed recovery of 75% will be lower than initially modeled. With the total volume of rock unchanged, this will imply bigger share of primary rock with 90% recovery, which is very good for the mining financials.
Mineral resource reporting process
As reported previously, a mineral reserve report ("GKZ report") for the Krasny deposit was completed and filed with the Russian GKZ authorities in Irkutsk on December 28, 2015, for review and approval. The report was prepared in accordance with the Russian GKZ regulations, and the draft confirms minable gold reserves of 9.5 tons (305 koz) in the C1+C2 categories and total gold reserves and gold resources of 18.6 tons (598 koz). The report has been reviewed by experts appointed by the GKZ authorities in Irkutsk and returned with some comments and recommendations. The revised report will be re-submitted shortly and the final approval is expected during March 2016.
In parallel to the GKZ-report, a report on mineral resources in accordance with the JORC provisions ("JORC report") is being developed. The drafting of the JORC report was started in November 2015, and is currently under way. The final report is expected during March 2016.
Next steps
Following the completion of Stage 2, the Krasny project moves into Pre-/Feasibility Studies, equipment procurement, construction and commissioning. We have commenced the Pre-Feasibility study, starting with the detailed Scoping study calculations. The calculations are performed by Irgiredmet, one of the Russian top engineering consultancies. Irgiredmet also develops the Processing tests for the Krasny deposit.
Based on the overall exploration results, we are now preparing a development plan for Krasny up until the production start. With the possible increase of the mine and plant capacity, we now consider the first gold production in 2018, which will be further reviewed during the detailed Feasibility study later this year.
We forecast the following events during the next few months:
- Approval of Russian GKZ reserves in March 2016
- Completion of JORC report in March 2016
- Commence Krasny 2016 Development Program in April 2016
For the complete press release including tables, images and maps see attached document.
För pressmeddelande på svenska se bifogat dokument (Swedish).
Stockholm, March 2, 2016
For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17, mikhail.damrin@kopygoldfields.com
Tim Carlsson, CFO, + 46 702 31 87 01, tim.carlsson@kopygoldfields.com
The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2016-03-02 English.pdf
Kopy Goldfields Pressrelease 2016-03-02 Svenska.pdf
About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ First North in Stockholm is a gold exploration and production company operating in one of the most gold rich areas in the world; Lena Goldfields, Bodaibo, Russia. The company holds 11 bedrock exploration- and production licenses and one alluvial license covering 1,963 sq km, of which the Krasny license is held 49% by the company. The preliminary forecast is to be in production in 2018. The target for Kopy Goldfields is to become a near-term gold producer in cooperation with a producing partner under JV agreement.
Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Aqurat Fondkommission acts as Certified Adviser, contact number: +46-8-684 05 800.
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