5th May 2016 08:13
LONDON (Alliance News) - Noricum Gold Ltd on Thursday said it has launched its drill programme at the Tsitel Sopeli gold target at the Bolsini project in the Republic of Georgia, which should start producing gold in the third quarter of this year.
The 13-hole drilling programme will be targeting the Tsitel Sopeli gold target, the second of two priority targets that the miner wants to exploit.
The drill programme will run in parallel with the metallurgical testwork being carried out, and the infill drilling that is planned for the other target, Kvemo Bolsini, will commence shortly. Kvemo Bolsini is the company's "most advanced" priority target, it said.
Similar to the drilling at Kvemo Bolnisi, Noricum Gold's drill programme at Tsitel Sopeli will target outcropping secondary quartzite gold mineralisation to generate a resource that will enable mine planning to commence at this second starter pit target.
Noricum is hoping to begin delivering a small-scale production operation from the two starter pits based over those two gold targets, whilst it develops a larger project for the longer term. Gold ore production is expected to come from outcropping mineralisation at Kvemo Bolsini in the third quarter of this year, followed by the Tsitel Sopeli target in the fourth quarter.
Beyond those targets, Noricum said there is exploration upside to the east of the targets, and the potential for production to start in the near term is boosted by the company's 30-year mining licence.
"The intention will be to minimise capital costs by using local mining contractors and toll treating ore through its partner's heap leach plant located nearby," said Noricum.
Noricum shares were trading up 11% to 0.228 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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