TIDMKGLD
RNS Number : 3250M
Kolar Gold Limited
15 August 2011
15 August 2011
Kolar Gold Limited
South Kolar licence area - drilling update
Highlights
-- 13 drill holes completed in Chigargunta NE deposit
-- Over 1,749 metres drilled of a 27,000 metres South Kolar
drilling programme
-- Mineralisation includes four contiguous intersections with
visible gold associated with sulphides over 10 g/t Au:
o KCN-02: 4.74m at 24.7g/t gold from 79.74m to 84.48m*
o KCN-05: 0.50m at 160.2 g/t gold from 117.14m to 118.89m
o KCN-10: 1.00m at 12.1g/t gold from 45.65m to 46.65m
o KCN-14: 1.10m at 16.4g/t gold from 45.29m to 46.39m
*previously reported
-- Two previously unidentified gold bearing lodes revealed, key
mineralisation include:
o KCN-05: 3.65m at 4.6g/t gold from 20.54m to 24.19m (HW
lode)
KCN-05: 2.60m at 6.0g/t gold from 134.04m to 136.64m (FW
lode)
Kolar Gold Limited ("KGL" or the "Company"), the Indian focussed
gold exploration and development company, announces that it has
intersected high-grade gold mineralisation after surface drilling
at the Chigargunta NE deposit in the South Kolar licence area (GP
13), India. The 13 holes (totalling 1749 metres) were independently
verified by the Competent Person, Mining Associates Pty Ltd ("MA")
and all work has been conducted under JORC guidelines. The
Chigargunta NE has an indicated resource of 13,200oz at 15.1g/t
based on historic drilling.
The current drilling by KGL has validated the historic results
previously carried out by the Geological Survey of India ("GSI")
and provided fresh geological data on the host rocks and structural
controls to mineralisation.
The mineralisation and alteration within this area appears to be
extensively developed and could represent a substantial
hydrothermal system.
Commenting today, Nick Spencer, Chief Executive Officer of Kolar
Gold Limited, said:
"These are very good drill results following our successful
admission to AIM on 17 June 2011. We have diamond drilled the first
13 holes for 1,749m at the Chigargunta NE deposit in the South
Kolar prospecting licence. It is encouraging that 4 holes
intersected high grades with visible gold assaying up to 160 g/t
gold. We believe we have a large hydrothermal system here with the
potential to make significant discoveries. The Chigargunta NE
deposit represents only the first of more than 10 targets in the
Chigargunta North prospect area which will be drilled as part of
our planned 27,000m drill programme."
The Chigargunta NE deposit is approximately 3km north of the
historic Chigargunta Mine previously operated by Bharat Gold Mines
Limited (BGML). Please click on the following link to view the
geological map
http://www.rns-pdf.londonstockexchange.com/rns/3250M_-2011-8-12.pdf
The deposit at Chigargunta Mine consists of two main lode
systems (west and east) identified over a strike length of about 3
km. Several lodes were developed underground over a strike of
700m.
Gold mineralisation at the western lodes of the nearby
Chigargunta Mine is of a similar style and location to that at the
Chigargunta NE deposit. The western lodes predominantly occur
within the mafic rock units and at times along the contact with
felsic volcanics. The eastern lodes are hosted within the felsic
volcanics (known locally as Champion Gneiss). Gold mineralisation
is localised along shear zones, characterised by strong mylonitic
fabric, profuse quartz veining and hydrothermal alteration.
The lode systems have been traced north from the Chigargunta
Mine lease area for approximately 3km into PL-GP13, in the
Chigargunta North block, by surface mapping, trenching and sampling
with limited geophysics and drilling. All along this 3 kms long
tract, a number of prospects have been identified along the western
and eastern lode system warranting detailed exploration.
The Chigargunta NE deposit is in the same geological setting
typical of the western lodes.
Table 1. Chigargunta NE Drill Results - Intercepts >1.0g/t Au
on all lodes
Depth From To Width Au Lode
BHID XCOLLAR YCOLLAR ZCOLLAR (m) AZIMUTH DIP (m) (m) (m) g/t No
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-01 201,249 1,409,726 797 116.24 270 -50 99.24 100.24 1.00 3.17 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-02 201,237 1,409,787 803 90.24 270 -50 79.74 84.48 4.74 24.69 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-03 201,298 1,409,726 792 175.6 270 -50 145.84 148.59 2.75 2.91 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-04 201,245 1,409,675 792 135.99 270 -55 90.94 91.94 1.00 7.18 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-05 201,237 1,409,775 801 149.54 270 -64 20.54 24.19 3.65 4.62 HW-2
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-05 117.74 118.24 0.50 160.25 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-05 134.04 136.64 2.60 5.98 FW
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-06 201,214 1,409,725 792 91.74 270 -50 no significant intersections
-------- -------- ---------- -------- ------- -------- ---- ----------------------------------------
KCN-07 201,237 1,409,700 795 137.24 270 -50 no significant intersections
-------- -------- ---------- -------- ------- -------- ---- ----------------------------------------
KCN-08 201,229 1,409,809 805 110.04 270 -50 95.54 96.04 0.50 1.80 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-08 97.54 100.04 2.50 3.42 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-09 201,323 1,409,773 798 247.16 270 -50 21.16 23.16 2.00 2.31 HW-1
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-09 190 191 1.00 2.40 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-10 201,220 1,409,650 787 112.15 270 -51 45.65 46.65 1.00 12.10 HW-1
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-10 97.15 100.15 3.00 4.10 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-11 201,210 1,409,800 807 77.24 270 -50 no significant intersections
-------- -------- ---------- -------- ------- -------- ---- ----------------------------------------
KCN-13 201,316 1,409,900 807 182.85 270 -50 no significant intersections
-------- -------- ---------- -------- ------- -------- ---- ----------------------------------------
KCN-14 201,217 1,409,625 784 122.54 270 -50 36.29 37.04 0.75 5.39 HW-1
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
KCN-14 45.29 46.39 1.10 16.41 ML
-------- -------- ---------- -------- ------- -------- ---- ------- ------- ------ ------- -----
*KCN-12 has been excluded as it is not part of the Chigargunta
NE programme
The drilling by KGL has been successful in delineating 3
mineralised zones of which the Main Vein mineralised zone (ML) as
outlined by the results in Table 1 has been traced for 250m along
strike and to a depth of around 150m below the surface with
significant grades. The zone is still open on strike and down dip.
The drilling at Chigargunta NE has:
-- confirmed the reliability of the historical drilling,
-- provided valuable understanding of structural controls to
mineralisation, and
-- confirms the high potential for further discoveries within
the Chigargunta North block subject to ongoing exploration
The company considers that there are a number of targets in this
area that warrant detailed exploration including ground geophysical
IP survey, geochemical exploration and drilling. (Refer Figure 1).
The mineralisation and alteration within the Chigargunta North
block indicates that the area represents a substantial hydrothermal
system although only very limited drilling has been carried out. It
presents KGL with the opportunity for an economic gold discovery as
demonstrated in the historic Chigargunta Mine.
The data acquired during this programme relating to lithology,
structure, alteration styles and base metals as indicators to gold
mineralisation are being reviewed and interpreted. From this, a
geological model js being developed in order to plan the next
campaign of drilling at the Chigargunta NE deposit. A further
drilling campaign is planned to extend the currently delineated
limits of the deposit and to undertake an updated resource
estimate.
About Kolar Gold Limited
Kolar Gold Ltd (KG) is an Indian gold exploration and
development company, listed on AIM London (KGLD), that has an
experienced international board and strong local partners. KG has
rights to explore and develop one prospecting licence and 13
further licence applications in the Kolar Gold Belt, an 80
kilometre long Archaean Greenstone Belt, in Southern India. The
Kolar Gold Belt is one of the most prospective underdeveloped
Archaean Greenstone Belts in the world and is regarded by Mining
Associates Pty Limited, the Competent Person, as comparable to the
Archaean Greenstone Belts of South Africa, Canada and Western
Australia which have similar geology, structure and style of
mineralisation. This project area includes 32 known mineralised
prospects and covers 568 square kilometres in the southern states
of Andhra Pradesh, Karnataka and Tamil Nadu. KG commenced
exploration on the first Prospecting Licence in South Kolar in
February 2011. KG is also jointly pursuing, with the mine employee
unions, the acquisition and revival of the neighbouring historic
Kolar Gold Fields which has produced 25 million ounces of gold at
15.9 grams per tonne over 120 years until closure in 2001.
Qualified Persons
The summary review of geology and drilling results was conducted
by Mr Andrew Vigar who has sufficient experience which is relevant
to the Archaean gold style of mineralisation and deposits under
consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' (Australia) and is a Qualified Person
as defined in NI43-101 (Canada). He is a Fellow of The Australasian
Institute of Mining and Metallurgy (Melbourne) and a Member of the
Society of Economic Geologists (Denver). Mr Vigar is employed by
Mining Associates Pty Ltd of Brisbane, Australia. Mr Vigar
conducted a site visit to the Kolar Gold Projects and adjacent
properties from 28 June to 2 July 2010. Mr Vigar does not have any
interest (current or past) in any of the assets covered by this
report.
For further information please contact:
Kolar Gold Limited
---------------------------- ----------------------------
Nick Spencer +617 3846 0211
---------------------------- ----------------------------
Cenkos Securities plc
---------------------------- ----------------------------
Nomad and Joint Broker
---------------------------- ----------------------------
Beth McKiernan/Ken Fleming 020 7397 8900/0131 220 6939
---------------------------- ----------------------------
Ocean Equities Limited
---------------------------- ----------------------------
Joint Broker
---------------------------- ----------------------------
Will Slack 020 7786 4370
---------------------------- ----------------------------
Tavistock Communications
---------------------------- ----------------------------
Ed Portman/Paul Youens 020 7920 3150
---------------------------- ----------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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