11th Sep 2007 12:46
Celtic Resources Holdings PLC11 September 2007 FOR IMMEDIATE RELEASE 11 September 2007 Celtic Resources Holdings Plc ("Celtic Resources" or "the Company") Celtic acquires exclusive option for 2.4 million ounce Lobash Gold-Copper deposit Highlights •Exclusive option to purchase 100% of the Lobash gold copper deposit in Karelia, Russia •Celtic to pay US$150,000 and complete a drilling program to confirm possible 2.44 million ounces of gold, to license owner, Promnedra •Payment terms to range from US$5 to US$10 per ounce for proven C1 resources •Option is until 31 December 2007 with a six month extension possible •Unpublished geological resources are 128.94 million tonnes at 0.59g/t gold and 0.15% copper Celtic Resources (AIM: CER) has acquired an exclusive option to assess and purchase 100% of the Lobash gold copper deposit in the central Karelia region of Russia. The option has been granted by the owner of the property, closed jointstock company Promnedra. Principal terms were an option payment of US$150,000 and a commitment by Celtic to complete a mutually agreed drilling program that confirms a minimum of 76 tonnes (2.44 million ounces) of gold in Russian C1 orJORC equivalent category. The term of the option is until 31 December 2007, with a six month extension to be granted, if required by Celtic. Payment terms will range from US$5/oz to US$10/oz for proven C1 resources. Following the discovery of Lobash in 1980 by the "Karelian GeologicalExcursion", 29 holes totalling 6,000m of 64mm diamond drilling were completed.This was based upon 200m x 100m drill spacing to depths of 50m to 350m. This wasfollowed in 1993 with a further 26 infill diamond holes on a 100m x 50m spacingin the centre of the deposit, targeting the higher grade stockwork core and anadditional two extension holes drilled along strike to test mineralisationcontinuity. To date, this drilling has not closed off the lateral, or down dip,potential of Lobash. However, it has confirmed the presence of a higher gradecore zone with gold grades in excess of 1.0g/t gold covering broad mineralisedzones varying between 100m to 200m. Outside of the main stock work core thetabular ore lodes vary in thickness averaging 10m to 20m, but at lower grades. A multi phased drilling program of approximately 20,000 metres is planned byCeltic Resources for 2007-2008 to evaluate several anomalous drill holes and toexplore along the strike to the west and also the northern plunge of thedeposit. The aim is to confirm, to JORC and Russian GKZ standard, the currentunpublished Russian resource data and to identify the extent of high grade orefor future feasibility. Unpublished geological resources at 0.5g/t Au equivalent cut-off stand as follows: C1+ C2 69.787 Mt at 0.52 g/t Au and 0.15% CuP1 59.153 Mt at 0.67 g/t Au and 0.15% CuTotal 128.94 Mt at 0.59 g/t Au and 0.15% Cu Total contained metal of 76.01 t Au (2.44 million ounces) and 193,000 tonnes of copper. Celtic is confident that the planned drilling program will convert much of the existing P1 category resources into the higher categories of C1 and C2. Celtic Resources Managing Director Kevin Foo commented, "The Lobash deposit is a very interesting gold copper prospect in a mineral rich area of Russia. This asset will compliment our activities in Russia and forms part of our long term strategy of becoming a major producer in the FSU." For further information please contact: CELTIC RESOURCES HOLDINGS PLC Tel: +44 (0) 207 921 8800Kevin Foo www.celticresources.comJonathan Scott-Barrett STRAND PARTNERS LIMITED Tel: +44 (0) 207 409 3494Simon Raggett, Chief Executive www.strandpartners.co.uk MIRABAUD SECURITIES LIMITED Tel: +44 (0) 207 878 3362Peter Krens www.mirabaudsecurities.co.uk FOX DAVIES CAPITAL LIMITED Tel: +44 (0) 207 936 5230Richard Hail, Corporate Finance www.fdcap.com CONDUIT PR Tel: +44 (0) 207 429 6606/+44 (0)792 292 3306Leesa Peters, Jane Stacey www.conduitpr.com www.celticresources.com Further Information on Lobash Copper Gold Deposit The Lobash Gold-Silver-Copper deposit lies within the Belmorski administrativedistrict in the central Karelia region of the Russian Federation. It is 40kmwest of the Borovoi train station, which is connected to the major city ofPetrozavodsk some 461km away. In addition, 105km by road to the east is the seaport of Belomorsk. The Karelia region is renowned worldwide for its wealth of mineral resourcesrich in diamonds, gold, silver, copper, nickel and molybdenum. Lobash is hostedwithin the Karelia Composite Terrane, which was formed during the earlyProterzoic era, as the Achaean terranes collided and eventually amalgamated withearly Proterzoic rocks. The Achaean greenstone belts are comparable to modern island arc assemblagesconsistent with the progressive westward accretion of successive island arcs,above eastward dipping subduction zones, separated by granite and gneiss. Morethan 20 major greenstone belts, up to 100 - 150km long have been recognisedwithin the Karelia Composite Terrane, as well as many smaller splintersseparated by various intrusions. Four main tectonic zones exist, each withdifferent composition and ages of volcanic rocks, combined with varying degreesof metamorphism and deformation. Locally, the Lobash deposit is hosted within the Lobskaya anticline along thecontact between Lower Proterzoic, Karelian Complex terrigenous sediments of theSumisk suite and Upper Achaean greenstone, Lopean Complex meta-volcanics of thePebozerskaya suite, overlaying later Achaean massive biotitic graniticintrusives. Gold, silver and minor copper mineralisation at Lobash consists of coarse freegold grains less than 0.8mm in size, combined with chalcopyrite, sphalerite andpyrrhotite sulphide ore occurring within a sulphide-quartz-vein stock worksystem associated with zones of hydrothermal and metasomatic biotite andsericite alteration. Outside of the central higher grade core stock work, broadmineralisation is developed along tabular plagioporphyry intrusives. Following the discovery of Lobash in 1980 by the "Karelian GeologicalExcursion", 29 holes totalling 6,000m of 64mm diamond drilling was completed.This was based upon 200m x 100m drill spacing to depths of 50m to 350m. This wasfollowed in 1993 with a further 26 infill diamond holes totalling 5,200m on a100m x 50m spacing in the centre of the deposit, targeting the higher grade coreand an additional 2 extensional holes drilled along strike to testmineralisation continuity. To date, this drilling has not closed off thelateral, or down dip, extents of Lobash, but it has confirmed the presence of ahigher grade core zone with gold grades in excess of 1.0g/t Au covering broadmineralised thicknesses varying between 100 to 200m. Outside of the main stockwork core the tabular ore lodes carry thickness averaging 10 to 20m, but atlower grades. A multi phased drilling program of approximately 20,000 metres is planned byCeltic Resources for 2007-2008 to evaluate several existing holes and to provideextensional drilling along the strike to the west and the northern plunge of thedeposit. The aim is to confirm, to JORC and Russian GKZ standard, the currentunpublished Russian resource data and to identify the extent of the high gradeore for future feasibility. Current geological resource estimates provided by Promnedra and reviewed byResource Evaluations Pty Ltd, Celtic's reserve consultant company, are shownbelow in Tables 1 and 2. ---------------------------------------- Table 1 Ore Resource 0.3 g/t - cut off Ore Tonne Metal Metal Au g/t Cu % ('000) Au (t) Cu (t) ------------ -------- ---------- ---------- ---------- ----------C1 0.59 0.13 35,441 20.36 44,408C2 0.30 0.13 61,266 17.06 77,314C1+C2 0.50 0.13 96,707 37.43 121,722P1 80,962 40.481 105,250C1+C2+P1 Total 177,669 77.91 226,972------------ -------- ---------- ---------- ---------- ---------- Table 2 Ore Resource 0.5 g/t - cut off Ore Tonne Metal Metal Au g/t Cu % ('000) Au (t) Cu (t) ------------ -------- ---------- ---------- ---------- ----------C1 0.79 0.15 25,499 19.9 37,881C2 0.40 0.15 44,288 16.48 66,960C1+C2 0.67 0.15 69,787 36.38 104,841P1 0.67 0.15 59,153 39.63 88,730C1+C2+P1 Total 128,940 76.01 193,571------------ -------- ---------- ---------- ---------- ---------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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