-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. 6,183 meters have been drilled as per September 7, 2015.
- 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 drill results confirm an extension of the mineralization along the strike to the West.
- In general, the preliminary results from the current metallurgical bulk sample processing tests for gold recovery follow the results from previous processing tests in 2012.
- These intermediate results are part of the exploration Stage 2, which will be finalized by the end of September.
This operational update further develops the information provided in press release 13/2015, dated July 30, 2015 and 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 September 7, 2015, 40 drill holes were completed, totaling 6,183 meters of core drilling out of the total 7,601 meters that are scheduled for Stage 2 (see Figure 4 in attachment 1 for details). All drill holes for engineering and water flow testing, 860 meters in total, have been completed. With two drill rigs in operation, Stage 2 exploration drilling is forecasted to be finalized by the end of September 2015.
We proceed with metallurgical bulk sample processing tests for gold recovery. In February 2015, we 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 in September 2015. The preliminary results in general follow the previous processing test of 2012, which recommended gravitationflotationleaching technology. We have now identified a commercial volume of oxidized rock, forming the upper part of the gold mineralization to the depth of 80120 meters, and currently we investigate if we can use it to our benefit. A cheap heap leaching technology however cannot be applied due to the presence of carbon in the rock.
We have also completed water flow tests within the projected open pit on the Krasny deposit and proceed with drafting a hydrogeological study report which shall be part of reserve report and Feasibility Studies (FS).
We proceed with drafting of 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 FS and construction. The first production is preliminary estimated during 2017.
In total, the Stage 1 and Stage 2 exploration costs for the Krasny project are significantly lower than the initially budgeted cost, mostly due to the sharp Ruble depreciation during 20142015. This will leave us with funds in the Joint Venture to proceed with the Feasibility Studies immediately after Stage 2.
Intermediate results
Based on the 5,336 assay tests received from the Stage 2 drilling, we see that the new exploration results strongly confirm the existing geological model. Some new mineralized intervals discovered increase the upside potential.
By September 7, drilling in profiles #37, #38, #39, #41, #42, #43, and #44 (see Figure 4 in attachment 1) has been completed and drilling (and sampling) along profiles #40, #45 and #48 was in process. Cross sections along profiles #37, #38, #41 and #42 are presented in Figure 5 and 6. Cross section along profile #37 represents the most western drill line along the strike. From this cross section #37 it can be seen that the mineralization should extend further to the West along the strike. From all 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 (at cutoff grade 0.4 g/t) include 27 meters with average grade 2.172 g/t in the hole #141581, 17 m @ 1.403 g/t (hole #141584), 37.9 m @ 1.521 g/t (hole # 141589), 19.2 m @ 1.775 g/t (hole #141592), 20.3 m @ 1.468 g/t (hole #141593), 18.1 m @ 1.847 g/t (hole #141595), 8.7 m @ 2.189 g/t (hole #141595), 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), 18.4 m @ 1.596 g/t (hole # 141601), 10 m @ 2.373 g/t (hole #141602), 22.7 m @ 2.499 g/t (hole #141620), 30 m @ 1.445 g/t (hole #141622), 15.5 m @ 2.35 g/t (hole #141623), 23.9 m @ 1.581 g/t (hole #141623), 18.4 m @ 1.598 g/t (hole #141630), 24.5 m @ 1.535 g/t (hole #141657). 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, September 10, 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 2015-09-10 English.pdf
Kopy Goldfields Pressrelease 2015-09-10 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 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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