19th Nov 2007 07:02
Ovoca Gold PLC19 November 2007 Ovoca Gold plc ("Ovoca" or the "Company") Operational Update and Approval of Resources Ovoca Gold Plc (AIM: OVG; IEX: OVX) ("Ovoca" or the "Company") announces that on16 November 2007 it received, from the Russian Government Commission for NaturalResources ("GKZ"), protocol stating that GKZ has audited and approved theresource classification for the Company's Goltsovoye silver deposit located inthe Magadan Oblast of north-east Russia. The total resource for Goltsovoye, asaudited and approved by GKZ, now stands at 81.33 million ounces of silver and46,438 tonnes of lead. GKZ has approved the new C1+C2 resources of 1,775,700 tonnes of ore with gradesof 1,025.28 grams per tonne silver and 2.7% lead plus an additional P1 resourcesfor the whole Goltsovoye ore field. This is summarised in the table below andamounts to a total C1 + C2 + P1 approved resource of 81.33 million ounces ofsilver and 46,438 tonnes of lead (equivalent to 87.99 million ounces of silverin value). Goltsovoye GKZ 2007 Resource Statement Area Resource Category Tonnes Silver Lead* Silver Lead* Silver Equivalent (000s) (g/t) (oz/t) (%) (t) (000ozs) (t) (000ozs) Zone1 C1 853.1 1212.9 39.0 2.8 1 034.7 33 267 23 793 36 677 C2 461.5 832.3 26.8 1.9 384.1 12 349 8 994 13 638 Subtotal C1+C2 1 314.6 1 079.3 34.7 2.7 1 418.8 45 616 32 787 50 315 P1 146.7 627.1 20.2 - 92.0 2 958 - Subtotal C1+C2+P1 1 461.3 714.6 54.9 2.7 1 510.8 48 574 32 787 53 273 Zone2 C2 417.6 854.9 27.5 3.2 357.0 11 478 13 651 13 434 P1 703.5 376.7 12.1 - 265.0 8 520 - Subtotal C2+P1 1 121.1 554.8 17.8 3.2 622.0 19 998 13 651 21 954 Zone 1 & 2 Subtotal C1+C2 1 732.2 1025.2 33.0 2.7 1 775.8 57 095 46 438 63 749 Subtotal C1+C2+P1 2 582.4 825.9 26.6 2.7 2 132.8 68 572 46 438 75 227Zone 1-A, 3, 4, P1 957.6 414.5 13.3 - 396.9 12 761 - 5 All Goltsovoye Total C1+C2+P1 3 540.0 714.6 23.0 2.7 2 529.7 81 333 46 438 87 987 *- Lead not estimated for P1 resources Note: Lead price used: 0.65 $/lb Silver price used: 10 $/oz Goltsovoye Zone 1&2 JORC Resource Statement by Wardell Armstrong February 2007 Area Resource Category Tonnage Silver Lead Silver Lead Silver Equivalent (000s) (g/t) (oz/t) (%) (t) (000ozs) (t) (000ozs) Zone 1 Measured 334 1293.4 41.6 2.55 432 13 891 8 521 15 112 &2 Indicated 1 027 927.0 29.8 2.83 952 30 611 29 055 34 775 Measured + Indicated 1 361 1 016.9 32.7 2.76 1 384 44 502 37 576 49 887 Inferred 128 601.6 19.3 4.69 77 2 476 6 005 3 337 Zone 2 Indicated 116 715.5 23.0 2.60 83 2 669 3 019 3 102 Inferred 792 760.1 24.4 2.24 602 19 357 17 738 21 899 Zone 1 Measured 334 1 293.4 41.6 2.55 432 13 891 8 521 15 112 &2 Indicated 1 143 906 29.1 2.81 1035 33 280 32 074 37 876 Measured + Indicated 1 477 993.2 31.9 2.58 1 467 47 170 40 595 52 988 Inferred 920 738.0 23.7 2.75 679 21 833 23 743 25 235 Total 2 397 895.3 28.8 2.69 2 146 69 003 64 338 78 224 Note: Lead price used: 0.65 $/lb Silver price used: 10 $/oz The above tables show that the Russian "C1, C2 and P1" resources for all Zoneshave a contained 87.99 million of silver equivalent ounces (converting the leadvalues to equivalent ounces of silver) compared to the Wardell Armstrong "Measured, Indicated and Inferred" resource for Zones 1 and 2 of 78.22 millionounces. As part of Phase 2 of the Bankable Feasibility Study, which is expected to becompleted by the end of the year, Scott Wilson Mining is converting the Zone1Measured and Indicated Resources into minable reserves and designing a 260,000tonne per year mine. Goltsovoye Water Supply Based on hydro-geological studies two new water well holes have been drilled andequipped for both process and potable water supplies for the mine. The report onnew water resources has been submitted to authorities for approvals. Leonid Skoptsov, CEO of Ovoca Gold plc, said "We are pleased with the approvalof these resources which is a milestone in the development of the Goltsovoyeproject. In terms of new GKZ approved resources, the potential of Goltsovoye israther underestimated by international auditing and further study of Goltsovoyeore field should bring new discoveries." The above information has been reviewed and verified by Roger Turner, Directorand Chairman of Ovoca, for the purposes of the Guidance Note for Mining, Oil andGas Companies issued by The London Stock Exchange in March 2006. Mr. Turner with41 years of mining engineering, management and consulting experience, graduatedas a mining engineer from the Cambourne School of Mines and has an M.Sc degreein Economic Geology from Leicester University. He is a member in good standingof the Institute of Materials, Mining and Metallurgy and is a UK CharteredEngineer. Ovoca Resources Plc is an international exploration company with dual listing in London (OVG.L) and Ireland (OVX.IR), exploring for Precious and base metals in Russia. For further information please visit www.ovocagold.com or contact: Leonid Skoptsov - Ovoca Gold Plc Alex Buck / Nick Bias - Buck Bias (UK PR)Tel + 7 (0)495 648 2646 Tel: +44 (0)7932 740 452 / +44 (0)7887 920 530Email: [email protected] Email: [email protected] / [email protected] John Frain - Davy John O'Connor - Ovoca Gold PlcTel : +353 (0)1 679 6363 Tel: +353 (0)1 633 0523Email: [email protected] Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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