4th Feb 2016 08:29
LONDON (Alliance News) - Noricum Gold Ltd shares rose on Thursday after the initial drill results from one of two priority targets at the Bolnisi project in Georgia supported the company's aim to kick-start gold production in the second half of 2016.
Noricum shares were up 10% to 0.116 pence per share on Thursday morning, one of the best performers on the London market.
The drill results have come from the Kvemo Bolnisi target, which is one of two outcropping mineralised targets at the project which Noricum believes can be fast tracked into production.
The first batch of drill results have provided intersections of 4.2 metres at 5.91 grammes of gold per tonne of ore and 4.8 metres at 1.05 grammes of gold per tonne of ore.
"These excellent initial results from our ongoing drill programme at Kvemo Bolnisi continue to highlight the potential for early stage low cost production at the first of our starter pit targets," said Chief Executive Greg Kuenzel.
Noricum will continue to drill on the project over the coming weeks and will then turn its attention to drawing up the pit design and mine plan which Noricum is hoping will lead to production starting in the second half of the year.
"With little or no stripping, this shallow secondary quartzite gold mineralisation presents a unique opportunity for us to leverage off the existing infrastructure and heap leach operation owned by our local partner," said Kuenzel.
In addition to that work, Noricum is also looking at the development of copper mineralisation at the surface of the project, adding a copper target to the project's two priority gold targets.
"With much high impact activity underway, this is an exciting period for the Company, one which we are confident will result in the near term transformation of Noricum Gold into a low cost producer generating material cashflows that can be reinvested into the multiple development opportunities we have already identified at Bolnisi," said Kuenzel.
By Joshua Warner; [email protected]; @JoshAlliance
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