Vancouver — The first 20 holes of a recently completed 29 hole drill program on
Designed to enlarge the previously defined resource of 79.1 million tonnes grading 1.33 grams gold per tonne, the entire reverse-circulation program comprised 7,600 metres.
The first 20 holes covered the southern and northern limits of the resource known as the B zone, as well as confirming the high-grade core area. Five holes expanded the mineralization to the northeast, south and west, cutting significant mineralization along the southern limits returning intercepts of 232.5 metres grading 1.13 grams gold per tonne, 210 metres grading 1.16 grams gold, 185 metres grading 1.65 grams gold, 330 metres grading 2.08 grams gold and 250 metres averaging 0.64 gram gold, respectively. These intercepts are expected to increase the B zone resource.
Along the northeast, holes GR94, GR95, GR96 and GR97 returned, respectively, 300 metres averaging 2.16 grams gold, 215 metres averaging 1.35 grams, 157.5 metres averaging 1.75 grams, and 162.5 metres averaging 1.38 grams. This mineralized zone dips at 45 to the northeast over a strike length exceeding 200 metres and remains open at depth.
Infill drilling has confirmed the eastern extension of the higher-grade zone, with hole GR96 significantly extending mineralization north and east.
To the northwest, a new extension to the A zone has been intersected in holes GR85, GR86 and GR87 with sections of 40-100 metres in thickness grading 1-1.25 grams gold. This zone remains open to the west.
These interim results would seem to confirm the existing Kisladag resource and provide for expansion of the resource.
Earlier this year, a scoping study proposed a 7-million-tonne-per-year heap-leach operation from which would be extracted 186,000 oz. gold annually. Capital costs are pegged at US$98.7 million; cash operating costs, at US$155 per oz. The project has an internal rate of return of 19% at a gold price of US$300 per oz., and the mine life is projected to be 11.3 years.
The geological resource, cut off at 0.3 gram, came in at 130.6 million tonnes grading 1.1 grams gold per tonne. The provisional pit outline, with a stripping ratio of 0.86:1, surrounds an oxide resource of 21.5 million tonnes grading 1.04 grams per tonne and a sulphide resource of 57.6 million tonnes grading 1.44 grams.
Metallurgical tests indicate an an average gold recovery of around 62%.
The company expects to receive its environmental impact assessment (EIA) certificate by the third quarter; a final feasibility study will follow. Construction is to get under way in mid-2002, with startup slated for late 2003.
Assay results from holes 21-29 are expected by mid-September.
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