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KGL RESOURCES LIMITED — Capital/Financing Update 2007
Dec 9, 2007
65179_rns_2007-12-09_c15b9e68-7101-4cd0-b651-c3045afb4898.pdf
Capital/Financing Update
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10th December 2007
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KENTOR GOLD LTD
ACN 082 658 080 Registered Office Level 3, 15 Queen Street, Melbourne Victoria 3000 Australia Phone: (03) 9621 1344 Email: [email protected]
Kyrgyz Republic Office 235/2 Erkindik Prospect, Bishkek Kyrgyz Republic 720739 Phone: +996 312 621 389 Email: [email protected]
ASX Announcement
New Exploration Licence Granted for Kentor in Kyrgyzstan
Chunkei licence area prospective for high grade lead and base metals.
Kentor Gold Limited’s (KGL’s) 80% owned Kyrgyz subsidiary, CJSC Kentor, has been granted a Prospecting Licence (1488 MP) over an area of 149 square kilometres for lead, zinc and other minerals in the central Naryn Oblast of the Kyrgyz Republic. The primary exploration target within the licence area is a carbonate-hosted base metal deposits indicated by a series of high grade lead occurrences with accompanying zinc, copper, and silver.
The best known of the occurrences is Chunkei, consisting of 5 vein-like galena-barite bodies in Palaeogene conglomerate adjacent to a contact with Palaeozoic sediments (Figure 1). The bodies at the Chunkei occurrence are confined within a zone 100 metres long and 15 metres wide. On surface they range from 8 to 10 metres in length, and from 0.2 to 3 metres in width and average around 20% lead.
A second high grade lead occurrence (Berkut-Ya) was mapped by Soviet geologists one kilometre to the south-west of Chunkei in a similar geological setting along a structure that appears to include the old Kulja-Bashat mine a further six kilometres to the south-west (not in KGL’s licence area) which is recorded as having produced 32,000 tonnes of lead in the years up to 1930 from high grade ore. Two further occurrences are recorded within KGL’s licence area ten kilometres to the north-east of Chunkei along the same geological trend on the northern bank of the Naryn River.
There is a hot spring on the south bank of the Naryn River near the Chunkei occurrence indicating an active hydrothermal environment. The exploration model is that the surface occurrences in Palaeogene and Neogene sediments are recent re-mobilisations of sulphides from a deeper carbonate-hosted base metal deposit. KGL plans to test this concept by using geophysics along the geological trend to explore for additional sulphide targets which will then be tested by drilling during 2008.
The area is of moderate relief at an altitude of 2,200 metres which will allow for an extended field season. The surrounding district is well developed with good road access.
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Figure 1 Chunkei Exploration Licence
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Figure 2 Location Plan.
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This report is based on information compiled by Simon Milroy, who is a member of the Australasian Institute of Mining and Metallurgy and a full time employee of Kentor Gold Limited. Mr. Milroy has sufficient experience which is relevant to the style of the mineralisation and the type of deposit under consideration and to the activity to 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. Mr. Milroy has consented to the inclusion of this information in the form and context in which it appears in this report.
For further information contact:
Mr Simon Milroy Managing Director Phone: (03) 9621 1344 or 0448 851575 Email: [email protected]
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