Kryso Resources Plc (AIM: KYS), the mineral exploration and development company currently developing the Pakrut gold project ("Pakrut Gold Project" or the "Project") in the Republic of Tajikistan, today announces details of an Independent Technical Report ("ITR") completed by SRK Consulting China Limited ("SRK") containing an upgraded JORC Code compliant mineral resource estimate (the "Upgrade") and an estimate of contained ore reserves at the Pakrut Gold Project.


The ITR also endorses the revised capital and operational expenditure estimates, as a result of the proposed final production capacity increasing from 2,000 tonnes per day ("tpd") to 4,000 tpd, as outlined in the updated Bankable Feasibility Study ("BFS") compiled by the Beijing General Research Institute of Mining and Metallurgy ("BGRIMM").


A full copy of the ITR is available on the Kryso website at www.kryso.com


Highlights:
  • Significant increase to Measured and Indicated JORC Code compliant mineral resource estimates compared to previous resource estimate compiled by Snowden Mining Industry Consultants (Pty) Ltd ("Snowden") and announced by the Company on 9 May 2012

o Measured resources estimate at Pakrut now 1.9 million ounces ("oz") at 3.16 g/t gold at a 0.5 g/t cut-off (previously 1.76 million oz at 3.00 g/t gold at a 0.5 g/t cut-off)

o Indicated resources estimate now 660,000 oz at 2.05 g/t gold at a 0.5 g/t cut- off (previously 449,000 oz at 1.83 g/t gold at a 0.5 g/t cut-off)

  • Proved ore reserves of approximately 1.55 million oz at 3.1 g/t gold at a cut-off of 1.0 g/t
  • Probable ore reserves of approximately 222,258 ounces at 2.5 g/t gold at a cut-off of 1.0 g/t
  • ITR endorses updated BFS capital and operational expenditure estimates

o Phase I - total capital expenditure of $176.5 million, of which approximately $15 million has already been incurred, to bring the project into production at an initial capacity of 2,000 tpd; operational cost of $38.64 per tonne

o Phase II - total capital expenditure of $46.5 million, which will be funded from operating cash flow from the Project once in production, to increase the project's production capacity to 4,000 tpd; operational cost of $32.77 per tonne

o Sustaining capital and operational expenditure throughout the Project's 19 year mine life of $32.7 million - funded from operating cash flow from the Project once in production

  • SRK: the Pakrut Gold Project, as outlined in the updated BFS, is "technically and economically feasible and viable"


Kryso's Managing Director, Craig Brown, commented:"I am delighted that SRK's report outlines a higher JORC Code compliant mineral resource estimate in the Measured and Indicated categories. This is further proof of the substantial potential of the Pakrut Gold Project.


"The SRK report outlines that SRK believes that the development plans proposed in the updated BFS are sound and that the project is economically and technically viable. This is a great achievement for the Company as we look to progress with construction work and move towards production.


"The updated production cost figures produced by BGRIMM, and as verified by SRK, combined with the newly published reserve and resource estimates, demonstrate the economic viability and substantial potential profitability of the Pakrut Gold Project."


Independent Technical ReportKryso commissioned SRK to provide an ITR on the Pakrut Gold Project operations located in Vahdat Region, Republic of Tajikistan. The ITR reviewed the updated BFS produced by BGRIMM and provided an updated JORC Code compliant mineral resource estimate and maiden JORC Code compliant reserve estimate.


Kryso intends to include this ITR in the documents that it plans to submit to the Main Board of the Stock Exchange of Hong Kong Limited ("HKEx") as part of a proposed future listing. In compiling the ITR SRK undertook three site visits to the Project and also utilised data provided by the Company.


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