A technical report and mineral resource estimation has been filed for the Kyzyl Ompul Licence for Powertech Uranium Corp, Azarga Resources and UrAsia in Kyrgyzstan LLC.
The report was prepared by Stephen Hyland and Samuel Ulrich of Corvidae as trustee for Ravensgate Unit Trust. It provides scientific and technical disclosures relating to the uranium and rare earth deposits and prospects of the Kyzyl Ompul Licence which are on the licence held by UrAsia. Azarga holds an 80% interest in UrAsia.
The licence is about 125km east of Bishkek and about 20km by road from the regional city of Balykchy. The project consists of one exploration licence with an area of approximately 42,379 hectares. The licence is valid until December 31, 2015 and permits exploration for uranium, thorium, iron, titanium, phosphate, rare earth elements (REE) and feldspar.
The technical report includes a summary of the mineral resource estimates prepared by Ravensgate for the Kyzyl Ompul Licence. The mineral resource estimation has been undertaken for the Kok Moinok zone of the licence in accordance with the mineral resource reporting guidelines outlined in JORC (2012) and NI 43-101.
The total inferred resource for Kok Moinok is 15.25 million tonnes @ 225.2ppm U3O8 at a lower cut-off of 100ppm for 7.51 million pounds.
The Kok Moinok Main Zone of the licence is approximately 700 metres along strike (east-west) by 600 metres perpendicular to strike (north-south) by 10-30 metres in depth (thick). The input data is comprehensive in its coverage of the mineralization and does not favour or misrepresent in-situ mineralization. The mineralization is contained in a structurally defined shallow dipping zone.
The definition of the mineralized zones was relatively constant from section to section and based on a good level of geological understanding producing a robust model of mineralized domains. The validation of the block model shows good correlation of the input data to the estimated grades.
An assessment was made of two exploration target zones identified at Kok Moinok, which were based on historic Soviet Era drilling data. This historic drilling is not immediately verifiable, and therefore the authors of the report downgraded the relative confidence of any estimates carried out for target reporting purposes. Ravensgate used initial assumptions of the extent of mineralization based on a relatively conservative half average drill-section spacing to help construct some mineralized zone wire-frame volumes.
The Kyzyl Ompul project is at an early stage of evaluation and Ravensgate understands that presently no major environmental, permitting, legal, taxation, socio-economic or marketing factors have been identified which would materially affect the resource estimate. There is no guarantee that measured or indicated mineral resources will be delineated on this project in the future or that the project will prove to be economically viable.
On April 2, 2014, UrAsia acquired two additional licences for subsoil use for the purposes of geological prospecting for uranium in the Kyrgyz Republic, namely the Shyrgy Licence and the Arsy Licence, both of which are valid until April 2, 2019. Shyrgy covers about 23,600 hectares and is in the Issyk-Kul region, Ton district. Arsy covers about 19,600 hectares and is in the Naryn region, Kochkor district.
On February 26, 2014, Powertech announced that it had entered into a share purchase agreement with Azarga pursuant to which it will acquire all of the issued and outstanding common shares of Azarga. Upon completion of the transaction, Azarga would become a wholly-owned subsidiary of the company and current Azarga shareholders would become Powertech shareholders holding approximately 77% of the Powertech shares. In addition, if the transaction is completed, the company will hold an indirect 80% interest in the Kyzyl Ompul, Shyrgy and Arsy licences through Azarga.