Kazax Minerals intends to extend its current drilling program at the Lomonosovskoye Iron Project in Kostanay Oblast with a further 11 exploration holes. Six of these holes will be within the envelope of two adjacent projected pits and five holes will be outside this boundary. They will target magnetic anomalies and the presence of copper and zinc mineralization.
The decision to extend the program is a result of further data processing of Soviet-era information, which was located in 2013 through government library information services and previously unknown to the company.
Out of the six holes to be drilled within the pit boundary, five are targeting a zone between the two pits previously thought to be potentially barren. The historic Soviet data demonstrates interesting mineralization and magnetic anomalies lying between these two areas. This could positively influence pit design work being conducted as part of the bankable feasibility study (BFS) process. The examination of this historical information has been running concurrently with the current drilling program.
Drilling began in September 2013 with 9141 metres completed of a planned 10,360 metre program by the beginning of February. Of the completed drilling, more than 1200 samples of drill core have been delivered to an independent lab - ALS at Ust-Kamenogorsk in Kazakhstan. Assay results are expected by May 2013.
Kazax benefits from the availability of historic drilling information linked to the Soviet era. This comprises 412 boreholes drilled between 1956 and 1982, totalling 131,441 metres. The results of this historic data are still being reviewed. The company has already sent to ALS lab in Ust-Kamenogorsk more than 800 powder samples not previously tested as part of this review.
The company anticipates completion of the initial drill program by March 2014 and the extended program by May 2014. It expects to produce a revised technical report in compliance with NI 43-101 upon announcing the results from this drill program.
Kazax continues to advance work towards the completion of its BFS, including detailed infrastructure and cost model improvements.
Kazax has this month completed the third and final tranche share payment due to Safin Element GmbH under the terms of the acquisition of a 74.99% interest in the Lomonosovskoye Limited Liability Partnership. In connection with the acquisition, the company has issued an additional 39,270,000 common shares to Safin.