17 November 2009
Kryso Resources plc
(`Kryso' or `the Company')
Pakrut Gold Project Resource Update Increases Total JORC Resources to 2,830,104 oz Au
- Increase of approximately 43% in Pakrut's total JORC Code-compliant resources
- Further increase expected once all results from 2009 drilling are incorporated
- Measured & Indicated resources increased by 165,751 oz Au
Kryso Resources plc (AIM: KYS), the gold exploration and development company
that is advancing its Pakrut gold project in Tajikistan through a bankable
feasibility study (BFS), is pleased to announce that GeoLogix Mineral Resource
Consultants (Pty) Ltd (GeoLogix) has completed an updated JORC Code-compliant
resource estimate for Pakrut.
Pakrut Gold Project - JORC Code-Compliant Resource Summary
Total
Cut-off Tonnes Au Au
(Au g/t) (metric) (g/t) (oz)
0.5 36,029,076 2.44 2,830,104
1.0 32,119,081 2.64 2,725,368
3.0 8,391,870 5.08 1,369,482
Measured
Cut-off Tonnes Au Au
(Au g/t) (metric) (g/t) (oz)
0.5 11,152,663 2.62 940,745
1.0 9,997,240 2.83 909,802
3.0 2,665,946 5.56 476,847
Indicated
Cut-off Tonnes Au Au
(Au g/t) (metric) (g/t) (oz)
0.5 5,838,129 2.09 392,795
1.0 4,799,435 2.37 365,199
3.0 861,179 5.23 144,765
Measured + Indicated
Cut-off Tonnes Au Au
(Au g/t) (metric) (g/t) (oz)
0.5 16,990,792 2.44 1,333,539
1.0 14,796,675 2.68 1,275,000
3.0 3,527,126 5.48 621,613
Inferred
Cut-off Tonnes Au Au
(Au g/t) (metric) (g/t) (oz)
0.5 19,038,283 2.45 1,496,564
1.0 17,322,406 2.60 1,450,367
3.0 4,864,744 4.78 747,869
Dr. Trevor Davenport, Non-Executive Chairman and acting Managing Director of
Kryso, comments:
`I am very pleased to see such a major increase in Pakrut's total JORC
Code-compliant resources, and we expect to achieve a further increase in the
first half of next year following the incorporation of additional results from
this year's drilling into the resource.'
About the Pakrut Gold Project
The Pakrut gold project, of which Kryso has 100% ownership, is situated in
Tajikistan approximately 112 km northeast of the capital city Dushanbe.
Pakrut has total JORC Code-compliant gold resources of 2,830,104 oz Au
(assuming a cut-off grade of 0.5g/t Au) and is located within the Tien Shan
gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and
western China, and which hosts a number of multi-million ounce gold deposits.
Drilling at Pakrut has previously returned numerous exciting intersections,
including 123.7m at 6.14g/t Au, 42m at 11.17g/t Au and 50m at 5.67g/t Au.
A bankable feasibility study for the Pakrut project is currently being
undertaken by the Beijing General Research Institute of Mining & Metallurgy.
The bankable feasibility study is targeted for completion before the end of
2009.
An internal prefeasibility study completed in 2008 envisaged a mining operation
at Pakrut producing in excess of 100,000oz Au per annum with cash costs of
approximately US$300/oz Au.
About Tajikistan
Tajikistan is a secular republic located in Central Asia. The country is a
member of the Commonwealth of Independent States (CIS) and the Shanghai
Cooperation Organisation. Tajikistan hosts numerous operating precious metal
mines as well as the largest aluminium smelter in Central Asia. Kryso's
management team has extensive experience in the mining industry in Tajikistan.
For further information please visit the Company's website (www.kryso.com) or
contact:
Dr. Trevor Davenport/Craig Brown, Kryso Resources plc
Tel: +44 (0) 20 7371 0600
Gavin Burnell, Astaire Securities plc
Tel: +44 (0) 20 7448 4400
Christian Dennis, Orbis Equity Partners Ltd
Tel: +44 (0) 20 3137 1902
Jason Bahnsen, Fox-Davies Capital Ltd
Tel: +44 (0) 20 7936 5200
Notes
The Mineral Resource, as defined by the 2004 Edition of the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the
JORC Code), estimated by GeoLogix has been tabulated above block model cut-offs
of 0.5g/t Au, 1.0g/t Au and 3.0g/t Au. The resource has been classified as
Measured, Indicated and Inferred according to the JORC Code and is based on
mineralization interpretations and data supplied by Kryso.
The data used for the resource estimation is comprised of diamond drilling,
surface trenching and channel sampling. GeoLogix has reviewed the drilling and
sampling data underlying the resource estimate and can verify that the data is
of sufficient quality to support the resource classifications applied.
The ordinary kriging and inverse distance cubed estimators were used to
estimate gold grade into a wire-framed volume model filled with orthogonal
blocks reflecting the interpreted geology. Where appropriate, grade capping was
applied prior to estimation. Search ellipses and ranges used in the estimation
reflect the spatial continuity and the mineralization trends of each of the
four mineralized domains.
GeoLogix has based the resource classification upon a number of criteria,
including the geological confidence, the integrity of the data, the spatial
continuity of the mineralization as demonstrated by variography, and the
quality of the estimation. The parts of the resource that were estimated by
utilizing half the distance of the variogram range, above 400m below surface
and estimated with a minumum of 10 samples have been classified as Measured.
The parts of the resource model that were estimated up to the distance of the
variogram range, above 400m below surface and estimated with a minimum of 5
samples have been classified as Indicated. All other areas of the resource and
in some cases where the data density is deemed too low have been classified as
Inferred Resources. An average in situ density of 2.57 t/m3 has been applied to
the oxidized zone of the mineralization and 2.62 t/m3 has been applied to the
fresh zones of the mineralization. The in situ density values reflect the
average value of the determinations made from the diamond core collected by
Kryso.
The information in this report that relates to Mineral Resources as defined
under the JORC Code is based on information compiled by Mr Deon van der Heever,
Mr Dave Briggs and Dr. Trevor Davenport.
Mr Deon van der Heever (Pr.Sci.Nat) is the Executive Director of GeoLogix and
produced the resource estimate based upon the interpretations provided by
Kryso. Mr Van der Heever has sufficient experience relevant to the type of
deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined under the JORC Code. Mr Van der Heever
consents to the inclusion in this report of the matters based on his
information in the form and context in which it appears.
Mr Dave Briggs (Pr.Sci.Nat) is a Director of GeoLogix and contributed in
producing the resource estimate based upon the interpretations provided by
Kryso. Mr Briggs has sufficient experience relevant to the type of deposit
under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined under the JORC Code. Mr Briggs consents to the
inclusion in this report of the matters based on his information in the form
and context in which it appears.
Dr. Trevor Davenport (B.Sc, M.Sc, Ph.D, MIMM, C.Eng) is Non-Executive Chairman
and acting Managing Director of Kryso Resources plc and provided geological
interpretations and the drillhole and trench database for Mineral Resource
estimation. Dr. Davenport has sufficient experience relevant to the style of
mineralization and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined under the
JORC Code. Dr. Davenport consents to the inclusion in this report of the
matters based on his information in the form and context in which it appears.
Glossary
Au - The chemical symbol for gold.
Bankable feasibility study - A study of the economic viability of the mining
and production of base or precious metals or other minerals in such form and
containing such detail as is customarily required by a bank or other financial
institution engaged in mining project finance to enable it to determine whether
to finance the development of a commercial mining operation.
Cut-off grade - The grade used to separate ore and waste such that only
material classified as ore will be treated in order to recover the economic
metal or mineral of interest.
Grade g/t - Grams per tonne.
Jack-Knifing Analysis - A general non-parametric method for estimation of the
bias and variance of a statistic using only the sample itself.
JORC Code - The 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves.
Kriging - A statistical technique used with variograms, or two-point
statistical functions that describe the increasing difference or decreasing
correlation between sample values as separation between them increases, to
determine the value of a point in a heterogeneous grid from known values
nearby.
m - Metre.
oz - Troy ounce.
Resource - An estimated tonnage and grade of mineralisation in the ground.
t - Metric tonne.
Variogram - A two-point statistical function that describes the increasing
difference or decreasing correlation or continuity between sample values as
separation between them increases.