Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") hereby provides an operational update of the Krasny project.
· The Stage 2 exploration drilling continues in accordance with schedule. 3,151 meters have been drilled as per July 26, 2015.
· So far, the exploration results of Stage 2 are in line with the existing geological model of the Krasny deposit, which accounts for 300 koz of gold to the depth of 200 meters.
· New mineralized intervals discovered increase the upside potential.
· These intermediate results are part of the exploration Stage 2, which will be finalized by the end of September, 2015.
This operational update further develops the information provided in press release 9/2015, dated June 16, 2015, which provided background information about the exploration program and general targets.
Exploration Program Stage 2
Drilling on Stage 2 of the current exploration program on the Krasny project was commenced on June 10, 2015. By July 26, 2015, 16 drill holes were completed, totaling 2,596 meters of core drilling (see Figure 4 in attachment 1 for details). The drilling is done by the same contractor as for Stage 1, an independent Russian contractor called "OOO Prikladnaya Geologiya" from Krasnoyarsk city of Russia, which also provided drilling services on the Krasny site during the years 2011-2013. Currently two drill rigs are in operation and the Stage 2 exploration drilling is forecasted to be finalized by the end of September 2015.
In addition to the drill holes mentioned above, we proceed with core drilling for engineering and water flow testing. So far, 4 drill holes are completed and 1 more is under way, totaling 555 meters. In addition to hydraulic and rock characteristics testing, all holes will be assayed for gold.
Since February 2015, we are doing metallurgical bulk sample processing tests for gold recovery. We have sent two bulk samples of 1,000 kg each to an engineering company in Irkutsk, Russia, and we expect to have the metallurgical test finalized by September 2015.
In July 2015, we commenced drafting the Russian reserve report and cut-off grade estimation report (the latter is an essential addendum to the Russian reserve report). The Russian reserve report is expected to be finalized by the end of 2015 and in January 2016, the Krasny reserve report is scheduled for review by the Russian Committee on Reserves.
Following the completion of Stage 2, the Krasny project will move into Feasibility Studies (FS) and construction. The first production is preliminary estimated in early 2017. The projected production capacity of the mine and plant is currently estimated at 30 koz and will be further revised during FS.
Due to the sharp Ruble depreciation during 2014-2015, the accumulated exploration costs for the Krasny project are significantly lower than the initially budgeted costs. This means that there will be funds left in the Joint Venture to proceed with the Feasibility Studies.
Intermediate results
Based on the 1,838 assay tests received from the Stage 2 drilling, we see that the new exploration results strongly confirm the existing geological model and new mineralized intervals discovered increase the upside potential.
By July 26, 2015, drilling in profiles #39, #41 and #43 (see Figure 4 in attachment 1) has been completed and drilling along profiles #38, #44 and #45 was in process. Cross sections along profiles #39 and #41 are presented in Figure 5. From the cross sections presented, a good correlation between the projected and actual mineralized intervals (projected ore bodies are marked with purple color) can be seen.
The most interesting mineralized intervals include 19.2 m with average gold grade of 1.775 g/t in hole #141592, 20.3 m @ 1.468 g/t (hole #141593), 28 m @ 1.539 g/t (hole #141596), 26.1 m @ 1.91 g/t (hole #141597), 15.4 m @ 2.191 g/t (hole #141598), 10 m @ 2.373 g/t (hole #141602), 22.7 m @ 2.499 g/t (hole #141620). See Table 1 for more assay data for the drilled boreholes.
For the complete press release including tables, images and maps see attached document.
För pressmeddelande på svenska se bifogat dokument (Swedish)
Stockholm, July 30, 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 2015-07-30 English.pdf
Kopy Goldfields Pressrelease 2015-07-30 Swedish.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 on 1,963 sq km, of which the Krasny license is held to 49 % and is preliminary forecasted to be in production in 2017. The target for Kopy Goldfields is to become a nearterm 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: +468684 05 800.
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