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KGL RESOURCES LIMITED AGM Information 2006
65179_rns_2006-05-24_f9e440f7-80c1-41d3-b895-e5a6af4c82b9.pdf
AGM Information
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KENTOR GOLD LIMITED ARN 52 082 658 080
Corporate Office Level 3, 15 Queen Street Melbourne Victoria 3000 www.kentorgold.com Tel: +61 (3) 9621 1344 Fax: +61 (3) 9621 1544 E-mail: [email protected]
Australian Operations
Level 10 9 Sherwood Road Toowong Queensland 4066 Tel: +61 (7) 3217 8708 +61 (7) 3217 8698 Fax: E-mail: [email protected] Kyrgyz Republic 235/2 Erkindik Prospect 720739 Bishkek
Tel: +996 (312) 621 389 Fax: +996 (312) 665 759 E-mail: [email protected]
Chairman's Address to Annual General Meeting - 25 May 2006
Ladies and Gentlemen.
Due to the recent change of the Company's annual reporting period to a 31 December year end, it is only six months since I addressed the initial Annual General Meeting of shareholders in November 2005.
At that time initial drilling of our Akbel prospect in the east of the Kyrgyz Republic was underway. Whilst we believe that based on the geology, geophysical and geochemical work associated with this drilling programme, Kentor's Akbel tenement contains nearly 20 Km of the same geological structure associated with adjacent Centerra owned Kumtor mine we have made little progress in demonstrating that through our program this year.
Drilling was planned to concentrate on the 5 km strike section directly adjacent to the Kumtor lease, and indeed our first hole collared on outcrop was completed without difficulty. However as we again attempted to test the main target under a cover of glacial moraine we have so far been unsuccessful in reaching bedrock.
We now realise that with both the altitude and the difficult ground encountered, the drill rig currently on site has insufficient power to drill the holes we require. David Royle will explain what we are planning to do about this shortly.
It goes without saying that your board is not happy with share price performance since listing. Although it is clearly related to the drilling problems we have encountered we are well aware that the market and indeed our shareholders are looking for results. We are hopeful that our planned work programme to be undertaken by David and his team over the coming months will begin to deliver the results necessary for a greatly improved share price.
Your Board remains convinced as to the quality of Kentor's tenements and the opportunities the Company is pursuing to discover a world class gold and/or copper deposit. We are confident that the market will give due recognition to success of the Kentor's programme at Akbel when success is achieved.
The Kyrgyz Republic is fast becoming a favoured destination for exploration and there are now 14 listed companies exploring in the Kyrgyz Republic. Kentor is confident of success and we believe there are 5 factors which, together, put us ahead of those competitors.
Firstly, our licence areas are in prime locations. Kentor Gold was active in the Kyrgyz Republic well before the current boom began, when only Kentor Gold and Barrick were actively exploring, and this allowed us to select the very best ground, such as the Akbel area adjacent to Kumtor. We also have the Bashkol licence area on the other side of the Kumtor mine, and results to date indicate that Bashkol warrants an intensive exploration effort, that we have planned for this year.
Secondly, we have a joint venture with a competent local partner which has worked well for 8 years. Our local partner, the Kyrgyz Geophysical Expedition, provides invaluable assistance with government relations, access to information, and general local support.
Thirdly, we have local and expatriate staff, led by Orozbai Tohtonazarov and Hugh McKinnon, on the ground, with in-country experience accumulated over many years.
Fourthly, our technical team led by David Royle has a very impressive track record of discoveries in environments similar to the Tien Shan belt.
Finally, Kentor uses state of the art exploration techniques as well as building on the wealth of data accumulated by Soviet geologists in the Kyrgyz Republic.
In conclusion, I should also mention that whilst our exploration endeavours are now focused exclusively in the Kyrgyz Republic, your board and management is aware of the need for a wider approach in pursuing its exploration endeavours for gold and base metals, and the company is ready and alert to pursue appropriate opportunities elsewhere, especially in those Central Asian countries possessing a favourable investment climate.
To give you a better idea of our 2006 work programmes, I will now call on David Royle to make a presentation to you. Prior to doing so, on behalf of the Board I would like to publicly thank our staff, the Kyrgyz Geophysical Expedition, and our contractors for their contributions to our progress to date. We believe we are in the right place with the right people and the right exploration techniques and that time and persistence will bring success.