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

June 2018

Project Highlights

  • Gold and Copper Inferred Mineral Resources (JORC compliant):
    • 484,000 ounces of gold (3Mt at 5.1 g/t Au) above a 1 g/t cut-off grade
    • 64,000 tonnes of copper (17.2Mt at 0.37% Cu) above a 0.25% cut-off grade
  • Clean and Simple Metallurgy:
    • 98% average total gold recovery
    • 88.6% average gravity recoverable gold
    • Visible (native) gold can be panned from faults at surface
  • Scale and Growth Potential:
    • Starts at surface and mineralised structures extend over 4 kilometres
    • Less than 5% of mineralised veins and faults have been drilled
    • Multiple gold, copper and base metals anomalies
    • Multiple porphyry intrusions with anomalous copper values
    • 3 kilometres of alluvial river terraces containing placer gold

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.

High Grade Gold Resource starting at Surface

The current JORC Compliant resource consists of 3Mt at 5.1 g/t containing 484,000 ounces of gold above a cut-off grade of 1 g/t and 17.2Mt at 0.37% copper containing 64,000 tonnes of copper.

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.

Clean Metallurgy and High Gold Recoveries

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 98% based on 278 samples and 83 composites.

Extensive Outcropping Mineralisation to Grow Resource Base

Drilling, trenching and mapping in 2014 -2017 identified multiple mineralised systems that extend more than 4 kilometres and are unexplored beyond this. Drilling has only tested 5% of the mineralised structures identified to date.

Native gold has been extracted from surface outcrops of the quartz veins over an elevation change of 500 metres suggesting that the gold bearing structures have substantial depth extent.

The Project also contains multiple gold, copper and base metal anomalies and has the potential to host additional porphyry copper deposits, skarn copper deposits, epithermal gold deposits and base metal accumulations along the porphyry contact.

The project boosts 14.3 kilometres of alluvial river terraces where trenching and test pits have identified alluvial gold.

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).