Georgian Mining Corporation has agreed to a 2018 Work Programme with its partner Caucasian Mining Group (CMG) to proceed with the development of the Kvemo Bolnisi gold-copper project and to perform further regional exploration at the 860km2 licence located on the Tethyan Belt in Georgia.
In line with this, Georgian Mining’s 50% owned subsidiary, Georgian Copper & Gold JSC (GCG), has entered into a Memorandum of Understanding (MoU) with RMG Gold LLC, (RMG), CMG’s sister production company, relating to the mining and processing of ore from the Kvemo Bolnisi East target.
The Agreement required GEO to contribute US$6 million towards the operating costs of GCG in return for its 50% stake while CMG transferred the licence into the JV in return for its 50% holding. Following completion of the initial two year work programme, GEO and CMG will now fund the development of GCG on a 50/50 basis.
While the negotiations in relation to the various agreements have been underway, GCG has focussed on expanding its knowledge of the extended licence area with a comprehensive soil sampling programme as well as metallurgical testing and desktop work on the JORC resource at KBE.
Following the successful completion of the initial two-year work programme and the satisfaction of the commitment of US$6 million, and in light of the progress made at Kvemo Bolnisi, CMG and GEO have now put in place a 2018 Work Programme and Budget. The focus will continue to be on the further development of KBE GZ2 gold oxides, initially with an in-fill drilling programme for resource definition and, in parallel, further testwork and environmental and feasibility studies to achieve the target of a starter mining operation at GZ2. The Work Programme also includes further testing and expansion of the JORC compliant copper-gold resources beneath the oxides at GZ2 and Copper Zone 1 (‘CZ1’), which contribute significant value to the future operation.
Georgian Mining Corporation Managing Director, Greg Kuenzel commented that the development of the gold oxides and expansion of the copper-gold sulphides at KBE are a core focus.
“Initial production from the gold oxides will serve as a starter operation and pave the way for the subsequent exploitation of the primary copper-gold sulphide ores at KBE. We also firmly believe that KB and the licence area as a whole have excellent potential for a major discovery of large-scale epithermal gold-copper mineralisation, and this is the focus of our wider exploration programme.
“With an agreed path towards development of the KBE operation, a strengthened relationship with our partner and further regional exploration planned across the Licence, 2018 promises to be a pivotal year as we look to build a portfolio of significant copper-gold assets in the prolific Tethyan Belt, and in the process generate value for our shareholders.”