Development Plan

The Company holds two contiguous licences located in the south west of Kyrgyzia – the Aprelskoe and Karachokinskaya licences.

The Aprelskoe (green rectangle) and Karachokinskaya (red polygon) exploration licence locations in local and regional context

The Aprelskoe license comprises five main deposits and these have been the focus of historical exploration, including surface trenching, underground channel sampling and diamond drilling. The Karachokinskaya licence contains numerous gold shows within two mineralisation zones, which historically have been explored by geophysical and geochemical methods.

A four phased approach is now being adopted for the development of the two licences. The ability to advance to each subsequent phase is contingent upon positive results being achieved in the previous phase. The four phases are:

  1. a mineral resource delineation programme;
  2. a scoping study;
  3. a feasibility study; and
  4. production.

The Company’s priority is to initiate an intensive drilling exploration programme in the Aprelskoe deposits to test target areas in order to increase the mineral resource base within the areas covered by the Aprelskoe Licence. The mineral resource base is targeted to increase from the current JORC inferred mineral resource of 48.3 koz, at a grade of 1.58 g/t Au, to a JORC indicated mineral resource of 400-500 koz at a grade of 2-3 g/t Au. Upon the successful completion of the drilling programme, the Company plans to commission a series of studies which are expected to lead to the completion of a feasibility study, conducted to bankable standards.

In phase one the aim of the exploration programme is to delineate and define extensions to the current mineral resources at the Aprelskoe deposits. This will focus on targeted exploratory drilling around the known mineralisation deposits. The programme will include a combination of infill drilling in the areas that are currently inferred and exploring for extensions to those zones.

Early stage prospecting, including the study of satellite and aerial images and surface examination and trenching, has also been carried out on the Karachokonskaya Licence. This indicates that this licence lies on the same geological trend as the Aprelskoe deposit and covers a number of geological anomalies that may be indicative of further gold resources.

In the longer term and assuming that the necessary resource can be established the Company plans to commence production at Aprelskoe and use a proportion of the net profit from that site to explore and as appropriate develop the wider Karachokonskaya Licence.

Chief geologist Sergey Bezberodov and translator Vladimir Fartushny reviewing drillhole site grid map references.

Construction of access roads

Access roads to drilling pads

Preparation of drill pad

Moving drilling rig into position

Drilling rig in position