Company and Mining

13 June 2017

Chanach Image 13.06.17

Looking northwest towards Quartz Zone- bull dozer completing access track


Heavy spring flooding and snow melt initially hampered project access during May but the exploration camp has now been established. The bulldozer and excavator have completed the access road between the camp and the high grade Quartz Zone and are currently completing drill rig access tracks at 50 metre intervals along the untested 200+ metre strike extension of the Quartz Zone (Figure 1). The Company expects the tracks to be completed in the next few weeks. The bulldozer will then clear multiple drill pads in preparation for drilling.

The Quartz Zone appears to extend at least 200 metres further south east of the existing drilling. Outcropping mineralised shear zones occur in a track cutting 50 metres southeast of the existing drilling with channel sample assay results of 2 metres at 5.4 g/t and 1 metre at 0.7 g/t gold within sandstone. Quartz veins outcrop a further 100 metres southeast of the channel samples.

Phase one drilling at the Quartz Zone consists of 15 holes (~1200 metres) of RC drilling. The drilling is targeting the Quartz Zone structure along strike from the existing drilling which defined an inferred resource of 244,000 tonnes at 9.5 g/t containing 75,000 ounces. Once the strike extent of the Quartz zone has been defined the Company will drill a series of deeper holes to test the mineralisation at depth.

The Company is currently finalising a drilling contract with contractor Geostandart LLC which has a 15 year history in the Kyrgyz Republic and is a substantial provider of drilling services to varied clients including several western domiciled exploration companies. Geostandart’s services includes diamond drilling, reverse circulation (RC) drilling, downhole surveying, directional drilling, mining related earthworks and road construction for multiple public and private companies in the Kyrgyz Republic. Geostandart is one of only two drilling companies in the Kyrgyz Republic able to conduct reverse circulation drilling.

For further information, please see the link below to today’s ASX announcement.

ASX Announcement