Positive drill results at Mallappakonda Deposit (3886A)
02 Aprile 2012 - 8:00AM
UK Regulatory
TIDMKGLD
RNS Number : 3886A
Kolar Gold Limited
02 April 2012
Kolar Gold Limited
("KGL" or the "Company")
Mallappakonda Exploration Update
Positive drill results at the Mallappakonda Deposit, South Kolar
Licence Area (GP13).
Kolar Gold Limited ("KGL or the "Company"), the Indian focused
gold exploration and development company, today announces
significant results at its Mallappakonda deposit (GML 18) in the
South Kolar licence area (GP 13) in India. Modelling is under way
in preparation for a resource upgrade from a combination of
validation drilling, historic data and new drilling at the
Mallappakonda deposit as part of an 8,000m drill programme
completed over the South Kolar licence area.
Highlights
-- Historic gold resource of 61,527 oz;
-- Drilling at Mallappakonda has validated historic Mineral
Exploration Corporation Limited (MECL) data;
-- Drill Hole KMK-02 intercepted a 21.5m wide mineralised zone from 98m averaging 5.5 g/t;
-- Drill Hole KMK-03 intercepted a 19m wide mineralised zone from 121.5m averaging 2.7 g/t;
-- Modelling is underway in preparation for a gold resource upgrade at Mallappakonda.
Commenting today, Richard Johnson, Chief Operating Officer of
Kolar Gold Limited, said:
"We are very pleased to announce these 2 quality shallow
intercepts at our Mallappakonda deposit. The historic gold resource
at Mallappakonda was 61,527 oz gold as defined by the MECL in 1984.
There remains scope to add additional ounces to the resource
statement and drilling at the deposit will continue once resource
modelling is completed. To date 8,000m of drilling in the South
Kolar block has been successfully completed and we look forward to
updating investors with further operational updates in H1 2012 once
additional assays results are received."
Mallappakonda Gold Deposit
The Mallappakonda deposit ("Mallappakonda") was first identified
during regional exploration conducted by the Geological Survey of
India (GSI) to the south of Kolar Gold Fields in 1975-79. The gold
mineralisation occurs on both limbs of an anticlinal axis and dips
steeply to the west. It consists of multiple zones associated with
banded iron formation within mafic units. Mineralisation occurs
over 800m of strike length at the end of the prominent
Mallappakonda Hill with only 150m having been evaluated with
drilling and three levels of exploration development. Several
prospective ancient workings have also been identified at
surface.
Underground work by MECL and BGML included two adits, three
drives, limited rise development and approximately 380m of
underground diamond drilling. The historical data was sourced from
the original documents by Mining Associates Ltd ("MA" or "Mining
Associates") and entered into a Gemcom Surpac resource and mining
data set with drill and channel sample database, scanned surface
and level plans, digitised mine workings, interpreted resource
domains and resource estimation block model. Higher grade zones are
defined as over 2.5 g/t Au and located in tight isoclinals folds
within a well mineralised area 150m long, 30m wide and to a depth
in excess of 300m.
Other South Kolar (GP13) Exploration Targets
Since the Company joined AIM in June 2011, 8,000m of Reverse
Circulation ("RC") and diamond drilling has been conducted as part
of a two rig 27,000m drill programme over the South Kolar licence
area. With regard to the ongoing exploration programme on the main
targets at South Kolar an intensive data review is underway. This
comprises:
a) An interpretation of all drill data generated during the
Company's current exploration programme combined with historic
data;
b) Detailed mapping of the Chigargunta block (GML 6) with a
focus on detailed structural and alteration interpretation to
understand controls to mineralisation;
c) A complete re-interpretation of all geophysical data
including aster imagery, close spaced ground magnetics and IP
surveys again with an emphasis on structural controls and
alteration footprints;
d) Further mapping and soil geochemistry in the remainder of GP13;
e) The integration of geological, geophysical and geochemical
data sets to assist identification of larger structural anomalies
and mineralisation control trends.
About Kolar Gold Limited
Kolar Gold Limited is an Indian gold exploration and development
company, listed on the AIM market (KGLD), which has an experienced
international board and strong local partners. KGL 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 Mr Andrew J Vigar of Mining Associates
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. KGL commenced exploration on the
first Prospecting Licence in South Kolar in February 2011. KGL 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 J 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 Limited of Hong Kong. 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
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Singer Capital Markets
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Nomad and Joint Broker
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James Maxwell / Jenny Wyllie +44 20 3205 7500
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Ocean Equities Limited
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Joint Broker
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Will Slack +44 220 7786 4370
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Tavistock Communications
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Ed Portman / Lydia Eades +44 20 7920 3150
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This information is provided by RNS
The company news service from the London Stock Exchange
END
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