27th Oct 2015 08:26
LONDON (Alliance News) - Noricum Gold Ltd Tuesday said it plans to get some "starter pits" up and running at the Bolsini project in Georgia within the next 12 months after reporting results from its latest work at the site.
The latest results confirmed the presence of significant gold mineralisation after it conducted trenching and short hole diamond drilling at the site.
The results confirm the presence of mineralisation that was discovered from historical work on the project. The results from the latest programme showed 5.5 metres at 5.80 grammes of gold per tonne of ore, 4.0 metres at 6.26 grammes of gold per tonne of ore, 12.0 metres at 7.79 grammes of gold per tonne of ore and 12.11 metres at 3.46 grammes of gold per tonne of ore.
The latest work has been focused on outcropping mineralisation, which have the potential to be mined in the next 12 to 18 months as "starter pits", it said. The project already has a 30.0 year mining licence, meaning the company has less regulatory hurdles to jump to get the project up and running.
"As these results show, Noricum has real short term, low cost opportunities to generate significant cash flow through production. Our 12 month strategy will primarily be focused on these 'Starter Pits' due to their close proximity to existing mining operations owned by our joint venture partner which have spare capacity, and also the presence of an existing mining licence covering these targets, minimising the potential start up time to production," said Chief Executive Greg Kuenzel.
The project already has a non-JORC compliant resource of 980,000 tonnes of contained copper, 6.6 million ounces of gold and 22.0 million ounces of silver. The first job is to convert these resources into a JORC compliant one.
Noricum said it is targeting an initial maiden JORC-resource of around 200,000 tonnes of copper and 1.5 million ounces of gold.
"Once this milestone has been met, we will look to build on this further at both targets before moving on to confirm the resources at the numerous other targets that have already been identified, in tandem with delineating new areas of mineralisation, which exist across the 861 square kilometre tenure," said Kuenzel.
Noricum shares were up 0.7% to 0.151 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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