Comet Resources is set to acquire Kyrgyz Gold and three drill-ready gold exploration licences in the Kyrgyz Republic’s Tien Shan gold belt.
This region hosts a number of world-class Orogenic-Type gold deposits including the 26 million ounce Kumtor site and the world’s largest open pit gold mine – the 190 million ounce Muruntau gold deposit which has annual gold production is about 2 million ounces.
Kyrgyz Gold holds the option to acquire 90% of the three licences from Warrior Resources for $1.25 million of which $250,000 must be paid in cash and the remaining $1 million in cash or shares of an ASX-listed company.
Surface trenching undertaken over the Ashutor licence in the northeast of the Kyrgyz Republic has identified high grade gold mineralization with notable surface trenching results of 50 metres @ 20 grams/tonne gold and 30 metres @ 15.8 grams/tonne.
Comet’s exploration manager Tony Cooper says this makes the licence prospective for the discovery of a near-surface high-grade gold deposit “The other two licences, Jetymbel and Chakyrkorum, occur along strike (15km) from the Kumtor deposit owned by Centerra Gold, with Jetymbel abutting the Kumtor Mining lease.
“Previous exploration including mapping combined with surface and trench sampling, has verified the presence of Kumtor-style mineralization with several geochemical defined drill ready targets. These results, geology and structure show that this area has the potential to host significant, large tonnage gold deposits,” he says.
All three licences have identified drill ready targets, offering Comet the opportunity to rapidly upgrade the projects. The company will undertake six months of due-diligence over the licences before a decision needs to be made to exercise its option.
The remaining conditions of the acquisition include Comet paying Kyrgyz Gold shareholders either $485,000 in cash, of which $460,000 must be reinvested in Comet through a share placement of 4.6 million shares, or $255,000 in cash with no reinvestment requirement. It will also have to issue 5 million shares to Kyrgyz Gold shareholders as well as 5 million options.