Kopy Goldfields AB (publ) ("Kopy Goldfields" or "the Company") is pleased to announce that the Russian gold producer and Kopy Goldields' JV partner GV Gold OJSC ("GV Gold") has formally confirmed its commitment to proceed to Stage 2 of the Exploration program on the Krasny Project and has invested further USD 3 million into exploration.
Within the terms of the shareholders' agreement of the Krasny project, GV Gold had a 3 months grace period following the completion of Stage 1 of the ongoing Exploration program, to take a decision to invest additionally USD 3 million and proceed with further exploration under Stage 2. Now this decision is formally taken and the money has been received to the Joint Venture.
Mikhail Damrin, CEO of Kopy Goldfields, comments the news: "Based on the positive exploration results from Stage 1, we were confident that GV Gold would proceed with further investments and exploration of Krasny. As an operator, we have put a lot of effort to make the exploration smooth and successful and now I am very happy to see their formal decision. Before taking the decision to proceed into Stage 2, GV Gold made a rigorous modelling of volumes and economics of a potential production on Krasny. With this decision, they signal that gold production from Krasny is both likely and profitable and that they would be interested to develop it. I would hardly believe that they would spend additionally USD 3 million into pure exploration without a strong and soon production opportunity. From our side, Kopy Goldfields will do its best to complete the Stage 2 exploration ASAP, to the best industry standards and cost efficiently. We find GV Gold a reliably and capable company and we are glad to have GV Gold as a partner in the Krasny project."
Stage 1 exploration activities on the Krasny license were commenced in mid July 2014 and were completed on schedule by the end of November 2014. In total, 51 drill holes, amounting to 7,916 meters of core drilling, were completed, and 1,712 meters of exploration trenches were developed. In addition, a bulk of metallurgical processing tests has been initiated to develop the optimum processing technology. The new exploration results strongly confirm and improve the existing geological model and increase the upside potential. The mineralization is left open along strike and down dip.
The targets of Stage 2 exploration will be to:
· Prepare for reserve reporting and to collect more engineering, processing, environmental and other data required for Feasibility Studies.
· Draft and file the reserve report both under Russian GKZ and JORC requirements.
· Increase resources by drilling along the strike, which is left open to both directions after stage 1.
The drill equipment and the camp are ready for the start of exploration activities Stage 2.
Due to weakening Ruble, the exploration costs after Stage 1 are so far much lower than the budget. As of today, it looks like the Stage 2 activities will also be run below the initial budget, which leaves funds to proceed with Feasibility Studies and permitting process in parallel with exploration activities of Stage 2.
For the complete press release including tables, images and maps, see attached document.
För pressmeddelande på svenska se bifogat dokument (Swedish)
Stockholm, March 25, 2015
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 2015-03-25 (English).pdf
Kopy Goldfields Pressrelease 2015-03-25 (Swedish).pdf
Mer information från beQuoted
Nyhetsrum Kopy Goldfields (Swedish)
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 on 1,963 sq km. The target for Kopy Goldfields is to create value by identifying and acquiring high potential gold projects, prospect and explore them until the stage when it can be either sold out for cash or developed in cooperation with another 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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