11th Apr 2016 11:15
LONDON (Alliance News) - Legendary Investments PLC said Monday preliminary exploration results from its investee company's Sultan Sary gold project in Kyrgyzstan has identified areas for follow-up work, and support its decision to exchange its coal interests for gold interests.
In October, Legendary acquired a 5.5% stake, and an option for a further 4.45% stake, in Manas Resources LLP, in exchange for its interests in Manas Minerals LLP, which has coal interests. Manas Resources holds a licence to explore and mine for gold in Sultan Sary, Narynskaya Oblast, Kyrgyzstan.
Legendary said results from a sampling programme undertaken by Manas Resources in 2015 found the distribution of bedrock in Area 1 of the Sultan Sary site is restricted, especially in the more prospective regions, but said a number of lithochemical anomalies were outlined for follow-up work "which may include trenching, geophysics and more details geochemical profiles".
Legendary added the programme identified a number of lithochemical anomalies for follow-up across the surveyed area Area 2, including a southern region which has a structural corridor favourable for gold mineralisation. This was supported by results of the bedrock sampling in Area 2, with samples returning assays with values up to 4 grams per tonne of gold, the company said.
Legendary said no detailed surveys were carried out at Area 3, which is considered to be the most prospective part of the licence area, but said a reconnaissance survey identified some small boulders in stream beds and gullies, whilst a boulder sample collected close to the southern border of the area assayed 36 grams per tonne of gold.
"We are pleased that the preliminary exploration results we have received so far have already delineated some very focused areas for follow-up work. They support our decision and efforts to exchange the coal asset for the gold asset and subsequently support the exploration of the gold asset," Executive Chairman Zafar Karim said.
"Following these results, the company intends to conduct further work, potentially in collaboration with partners, with a view to outlining a mineral resource," Karim added.
Shares in Legendary were up 33% at 0.352 pence on Monday.
By Hannah Boland; [email protected]; @Hannaheboland
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