Kryso Resources in talks with major Chinese miner over investment
Kryso Resources (LON:KYO) told investors that it is now in talks with a
major Chinese mining company in relation to a potential investment in
the company.
Kryso has entered into an exclusivity period, until
11:59pm BST on Friday 25 June 2010, to discuss the potential investment.
During
the exclusivity period, Kryso cannot carry on or solicit discussions
with any other party in relation to any investment in the company's
shares or the disposal of any of the company's assets. The company
cautioned that: “There can be no guarantee that the potential investor
will make any investment in the company”.
At the company’s
principal operation, the 2.8 million ounce (Moz) Pakrut gold project in
Tajikistan, Kryso is currently finalising an expanded Bankable
Feasibility Study (BFS). Initially, the BFS was slated for completion
this month. However ‘encouraging’ drilling results, which according to
Kryso indicate ‘excellent potential to expand the underground resource
base’, are now being included in the study.
At the end of March,
Kryso told investors that high grade drill results from Ore Zone 1 had
shown that the mineralization widens at depth, sparking a rethink from
the company and BGRIMM. Kryso and the BGRIMM now believe that a more
robust mine development plan will be forthcoming if Pakrut is developed
solely as an underground gold mine to exploit the widening underground
gold structure.
It is anticipated that an underground approach
would deliver superior economics relative to a combination of open pit
and underground mining and would also enable the early exploitation of
higher grade ore found at depth, with lower grade near surface ore
blended in as required to produce optimal feed for the mill,” Kryso
stated.
On 20 April, Kryso reported the most recent, "excellent"
assay results from drilling at Pakrut. The assays, which the company
described as highly encouraging, were intercepted in Ore Zone 1 and Ore
Zone 3. Intercepts from Ore Zone 1 included 25.5m at 7.5 grams per
tonne (gpt) gold, 42.4m at 5.4gpt and 12.0m at 6.4gpt, while Ore Zone 3
assays included 9m at 7.5gpt and 13.5m at 7.5gpt containing 4.5m at a
higher grade of 20.1gpt.
With all other major elements of the
study largely complete, Kryso now expects to complete a fully optimised
BFS, including the new resource model, in August.
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