The Aucu Gold Deposit, Kyrgyz Republic, Central Asia (90%)

March 2018

Project Highlights

  • JORC compliant inferred gold resource of:
    • 1.8 Mt at 5.2 g/t containing 302,000 ounces of gold above a 1 g/t cut-off grade
    • 10.6Mt at 0.41% copper containing 44,0870 tonnes of copper
  • Starts at surface and mineralised structures extend over 4 kilometres
  • Native gold can be panned from faults at surface and from drill chips at depth
  • Less than 5% of mineralised veins and faults have been drilled
  • High average total gold recoveries of 99%
  • Average gravity recoverable gold of 88.6%
  • New resource estimate in progress based on 2017 drilling

The Aucu Gold and Copper project covers 57km2 and is located in Central Asia in the Kyrgyz Republic 350 kilometres west of the capital Bishkek. Access is via all-weather roads and the deposit is located in an active mining region with good infrastructure. The deposit contains both gold and copper mineralisation.

The Aucu gold deposit is hosted in sandstones, conglomerates and minor granodiorites that flank a series of felsic porphyry intrusions considered to be responsible for both epithermal gold mineralisation and copper porphyry mineralisation.

The intrusion of the porphyry into the sedimentary sequence has resulted in tectonic uplift and extensive faulting. As gold bearing fluids flowed away from the central porphyry along faults and shear zones in the sandstones the gold bearing fluids cooled and the gold deposited as native gold associated with quartz veining in the faults and shear zones. Native gold has been extracted for surface outcrops of the quartz veins over an elevation change of 500 metres suggesting that the gold bearing structures have substantial depth extent.

Drilling, trenching and mapping in 2014 -2017 identified multiple mineralised systems that extend more than 3 kilometres and are unexplored beyond this.

Preliminary metallurgical test work has identified a very high gravity gold component resulting in 88% of the total gold reporting to the gravity concentrate. Total average gold recovery is currently 99% based on 182 samples and 69 composites.

The current JORC Compliant resource consists of 1.8Mt at 5.2 g/t containing 302,000 ounces of gold above a cut-off grade of 1 g/t and 10.6Mt at 0.41% copper containing 44,870 tonnes of copper. The Company is currently conducting a new resource estimation based on the 2017 drilling which is expected to increase the resource.

Figure 1 Regional location map showing Aucu gold project and distribution of gold and copper deposits

 

Figure 2: Location map of drilling showing Inferred gold resources (red hatch) that represent less than 5% of the identified mineralised faults. 95% of the mineralised faults identified by rock chip sampling are still to be drilled (dashed blue and green lines).