11th Aug 2009 07:00
11 August 2009 Kryso Resources plc (`Kryso' or `the Company') Appointment of Beijing General Research Institute of Mining & Metallurgy to Complete Bankable Feasibility Study for the Pakrut Gold Project
Kryso Resources plc is pleased to announce that it has appointed the Beijing General Research Institute of Mining & Metallurgy (`the BGRIMM') to complete the Pakrut gold project bankable feasibility study (`the BFS'). The BFS is targeted for completion before the end of 2009.
About the BGRIMM
The BGRIMM is a highly reputable Chinese consulting group active in the fields of mining engineering, mineral processing and metallurgy, and has completed substantial work for well known international companies including Kazakhmys, El Dorado Gold, SinoGold, ArcelorMittal and Griffin Mining. The BGRIMM is ISO9000 certified.
In completing the Pakrut project BFS the BGRIMM will build on work previously completed by other consultants to Kryso including GeoLogix Mineral Resource Consultants (resources), GBM Minerals Engineering Consultants (metallurgical test work review and preliminary process design), Prime Resources (social and environmental), Scott Wilson Group (tailings dam design), SGS Group (metallurgical test work) and Turgis Mining Consultants (mining and infrastructure).
Trevor Davenport, Non-Executive Chairman and acting Managing Director of Kryso Resources plc, comments:
`The appointment of the BGRIMM, which has an excellent track record of assisting with the development of significant mining projects in a wide range of countries, will enable Kryso to complete a high quality BFS for Pakrut project in a timely and cost effective manner.'
About the Pakrut Gold Project
A bankable feasibility study for the Pakrut gold project based on a mining operation producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au is currently in progress, and is targeted for completion before the end of 2009. First gold production at Pakrut is targeted for 2011. An internal pre-feasibility study for the project was completed in early 2008, with highly positive results. Estimated cash costs under the internal pre-feasibility study were US$291/oz Au.
The Pakrut gold project's total JORC Code-compliant resources comprise: resources of 21,383,902t estimated across Ore Zones 1, 2, 3 and 7 at an average grade of 2.53g/t for 1,739,029oz Au, assuming a cut-off grade of 0.5g/t; and resources of 5,015,285t estimated across Ore Zones 5, 6, 7, 14 and 16 at an average grade of 1.52g/t for 245,243oz Au, assuming a cut-off grade of 0.5g/t. Total contained gold is therefore estimated to be 1,984,272oz Au.
Total JORC Code-compliant resources of 13,412,109t at an average grade of 2.71g /t for 1,167,789oz Au, assuming a cut off grade of 0.5g/t, fall into the JORC Measured and Indicated categories.
The total resources of the Pakrut gold project under the Russian classification system stand at 26,211,495t at an average grade of 2.44g/t for 2,055,047oz Au, assuming a cut-off grade of 0.5g/t. This includes total reserves of 14,910,748t at an average grade of 2.65g/t for 1,257,454oz Au, assuming a cut-off grade of 0.5g/t.
For further information please contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc.
Tel: 020 7371 0600
Brett Miller, Ruegg & Co Limited.
Tel: 020 7448 4498
Christian Dennis, Orbis Equity Partners Ltd.
Tel: 0203 137 1902
Jason Bahnsen, Fox-Davies Capital Ltd.
Tel: 020 7936 5200
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