Kolar Gold Limited Jonnagiri Mining Lease Granted (5018R)
28 Ottobre 2013 - 8:01AM
UK Regulatory
TIDMKGLD
RNS Number : 5018R
Kolar Gold Limited
28 October 2013
28 October 2013
Kolar Gold Limited
Jonnagiri Mining Lease Granted
Kolar Gold Limited (AIM: KGLD, referred to as 'KGL', 'Kolar
Gold' or the 'Company') is pleased to announce that the Jonnagiri
Mining Lease has been granted by the Andhra Pradesh Government to
the Company's partner Geomysore Services India Private Limited
("GMSI"). As announced on 19 August 2013, the Company holds a 30%
equity interest in GMSI and therefore all its gold projects,
including the Jonnagiri Gold Project in India.
GMSI is a leading exploration company in India with a
well-established office in Bangalore and a strong gold exploration
team of experienced geologists. Over the last 15 years GMSI has
secured the project rights and preferential rights under
application to 49 gold projects, including Reconnaissance Permits,
32 Prospecting Licences and six Mining Leases covering 11,066km2
across India with 1.36Moz JORC resources defined.
GMSI secured a Reconnaissance Permit in 2008 and since then has
undertaken exploration including, geochemical sampling, structural
mapping and core drilling, while also conducting public hearings
and completing all necessary approval steps to proceed with mine
development upon granting of the Mining Lease. GMSI first applied
for the Mining Lease in 2006.
The Jonnagiri Greenstone Belt lies in the Eastern Dharwar Craton
and the project is located in the Kurnool district of Andhra
Pradesh. The region is recognised as being highly prospective with
many indications of ancient mining. The Geological Survey of India
commenced a detailed investigation between 1991-1994 involving
3,298m of core drilling, which led to the identification of two
mineralised blocks. The project also has good access to
infrastructure being located close to the Bangalore - Hyderabad
national highway.
As part of Kolar Gold's due diligence, the Company engaged
Mining Associates in 2012 to produce a competent persons report on
the Jonnagiri deposit, the result was a validated 720koz JORC
Resource and an exploration target of 2-5Moz. Mining Associates
confirmed an open pittable resource at the Dona East block of
190koz @ 2.1g/t and 530koz @ 4.3 g/t in an underground resource at
the Dona Temple block which demonstrated wide intersections of
22.7m @ 7.5g/t at a depth of approximately 300m.
The Board believes this is an excellent opportunity for GMSI and
KGL and the immediate plan is to mobilise drilling rigs to
undertake further exploration drilling to extend and upgrade the
JORC Resource. Planning is underway for the development and design
of the open pit and the necessary shaft sinking and underground
development work. The awarded Jonnagiri Mining Lease is a 30 year
licence with an option to extend for a further 20 years. The
Company is not obligated to fund the development of the GMSI gold
projects but the Board may decide to do so in the future depending
on the commercial rationale.
CEO Nick Spencer commented today: "We are delighted that GMSI
has received final State Government approval for the Jonnagiri
Mining Lease. This is a rare event in a complex and bureaucratic
licence regime and therefore a major step forward for the
companies. We now look forward to working closely together to
develop the project with the intention of building one of India's
first private gold mines and realising its significant resource
potential for the benefit of all stakeholders, including the local
population, GMSI and our shareholders."
Enquiries:
Kolar Gold Limited
Nick Spencer / Chris Clowes +617 3846 0211
N+1 Singer (Nomad and Joint Broker)
James Maxwell / Jenny Wyllie +44 20 7496 3000
Ocean Equities Limited (Joint
Broker)
Guy Wilkes / Will Slack +44 20 7786 4370
Tavistock Communications
Edward Portman / Nuala Gallagher
Churchgate Partners +44 20 7920 3150
Sumir Bhadwaj +44 7768 696 760
-END-
This information is provided by RNS
The company news service from the London Stock Exchange
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