Kenadyr Mining has entered option agreements with Realgold Resources for the acquisition of nine mineral exploration licences in the Kyrgyz Republic. The licences cover approximately 1200sqkm of the most prospective gold ground within the Middle Tien Shan carbonaceous shale belt.

The licences occur within a strike length of 800km from west to east. They contain approximately 80% of the exposed Upper Proterozoic black shales found in the Kyrgyz Republic that are not within a protected area.

Under the terms of the agreements, Kenadyr, through its Kyrgyz subsidiaries, is required to advance as secured loans an aggregate of more than US$552,000 to certain subsidiaries of Realgold.

Upon completion of the advances and subject to compliance with all applicable Kyrgyz laws, Kenadyr will be eligible to exercise its option to acquire the licences.

During the period of the option, Realgold’s subsidiaries will use the funds advanced under the option agreements to conduct exploration activities on the licences and to maintain the licences in good standing under Kenadyr’s oversight.

Kenadyr is in possession of a complete data set, compiled during the Soviet era, for all licence areas. This dataset includes all data from thorough regional, with follow up local, exploration programs.

The dataset includes all geological and geochemical maps, maps of soil sediment geochemistry, stream sediment and pan concentrate geochemistry, airborne and ground geophysical surveys, compiled geologic reports and maps of all rock chip and channel sample locations and results as well as all known mineral occurrences.

During the 2017 field season, the three licences east of the operating Kumtor mine were examined by an academic reconnaissance team.

Anatoly Gibsher, from the Novosibirsk Institute of Geology and Geophysics, and a well-known expert on gold deposits within the Asian and Siberian Upper Proterozoic carbonaceous shale formations, was the leader of the team.

He stated: “The geological setting is very similar to that at Kumtor. Within the licences, and extending for many tens of kilometres are intensively altered and pyritised carbonaceous shales which belong to the same formation that hosts the Kumtor deposit.”

In the northwest of Kyrgyzstan, Kenadyr has acquired the option to the licences surrounding the Chaarat gold deposit and the Kuru-Tegerek gold deposit. The licences also cover the outcropping carbonaceous shales which occur on strike to the east of the Chaarat deposit.

Kenadyr Mining owns the Borubai project which hosts both the South Zone and East Zone. These Zones are directly adjacent to the TBL Mine operated by Zijin.