Sydney, Dec 11, 2007 AEST (ABN Newswire) - Kentor Gold Ltd (ASX: KGL) recently announced it has received further assay results from diamond drilling at its Savoyardy Gold Project in the Kyrgyz Republic. How significant were these intersections? Has your first drilling campaign at Savoyardy met expectations? Can you summarise your geological understanding of the project, particularly with the grade and width of intersections, the depth and orientation of mineralisation and the lateral extent of the mineralisation?
MD Simon Milroy
The results from the drilling to date have been very significant as it provides us with confirmation of the results achieved by the Soviets during the seventies. The results have allowed us to commence forming a detailed geological model of the prospect which is showing the gold to be contained in a number of discreet near vertical high grade structures which are showing continuity along strike and good mining widths.
The results have also confirmed that the grade of the ore body is continuing to improve with depth. The ore body remains open both along strike and down dip.
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How many of the assays have you received? What results are outstanding and what could you reasonably expect from them given the geological model you are developing?
MD Simon Milroy
We have now received assays for the first six holes of the 14 holes drilled at Savoyardy. We expect to continue to report good results as they become available from the laboratory. The remaining results are expected to be received over the next six weeks.
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What is the forward exploration program at Savoyardy? What advantages do you expect from the underground exploration adit you are redeveloping?
MD Simon Milroy
The rehabilitation of the existing adits will be completed this month. The miners will then work on an additional 100m of development to provide cuddies for diamond drilling from underground. Underground drilling on the Savoyardy project has a number of advantages over drilling from surface including; better access, shorter hole lengths, cheaper drilling costs and importantly it gets us out of the weather which will mean that we will not need to halt operations in the winter months.
The new drill cuddies are located midway between the gold and antimony drives. This will mean that the structure containing high grade antimony can also be tested by diamond drilling from the same locations.
We are also planning to resume diamond drilling from the surface in May 2008 to test additional targets along strike towards the Chinese border.
The results to date certainly justify an acceleration of the exploration at Savoyardy. We are currently planning a total of 4,500 metres of drilling at Savoyardy in 2008.
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Can you outline the status and your geological understanding of the Akbel project? When do you expect to commence drilling and what is the program aimed at?
MD Simon Milroy
Diamond drilling at Akbel is planned to commence this month. We plan to drill four 250m deep diamond drill holes targeting Induced Polarisation (IP) anomalies located near the lease boundary with the Kumtor mine. The gold at Kumtor is hosted in carbonaceous shales which respond well to IP. Kumtor is a 12 Moz gold ore body and the planned drill program is directly along strike and located in the same formation.
The hole collars are all located in areas of shallow moraine cover to avoid the difficulties which have affected earlier drilling programmes on the Akbel tenement. The contract has been signed with the drilling contractor. The mobilisation of the first diamond drill rig will be commencing on the 17th December. This will then be followed by a second drill rig as soon as the first rig has commenced drilling.
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Previously you announced the Memorandum of Understanding (MOU) with Panax Geothermal on four geothermal energy licences in the Kyrgyz Republic. Can you update the status of these projects?
MD Simon Milroy
Panax Geothermal Pty Ltd successfully merged its geothermal interests with Uranoz Limited. Bertus De Graaf is now the managing director of Uranoz, which is still in the evaluation period of the MOU with Kentor Gold.
Uranoz has been busy collecting and analysing historical data on the licence areas in the Kyrgyz Republic. They have also measured rock temperatures within an adit on the Inylchek licence area which confirmed the reported rock temperature of 75 degrees centigrade which indicates a geothermal gradient in excess of 100 degrees C per kilometre.
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Kentor recently announced two new exploration licences had been granted in the Kyrgyz Republic. Can you tell us a bit more about these new licences?
MD Simon Milroy
We have just been granted the Yangidavan and Chunkei exploration licences in the Kyrgyz Republic. At Yangidavan, Soviet geologists discovered a zone of oxide and sulphide mineralization outcropping over a 1.2 km strike length with an average width of 8.7m. The prospect has been explored on surface only by shallow trenching. A pit was excavated into the sulphide zone which returned 8 metres grading 14.6% lead, 1.7% copper and 272.9 gpt silver. A number of trenches were also excavated into the outcropping oxide zone and reported high grade lead and silver. When the Soviet Union collapsed, work stopped at the site. No drilling has ever been conducted on the deposit.
Soil sampling results also indicate that the mineralization appears to extend for an additional 1.2 km on the south side of the river.
At Chunkei, high grade lead mineralisation occurs at five separate locations within a 16km length of a north east trending structure. Historical mining of 32,000 tonnes of lead took place in the 1930's at a site located on this structure approximately 5 kilometres from our lease boundary.
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What plans do you have to advance this project?
MD Simon Milroy
We plan to spend the winter collecting and analysing the extensive historical information on these licence areas. When the snow clears at Yangidavan we plan to take in portable diamond drilling rigs with the aim of proving that the high grade mineralization extends at depth.
At Chunkei, we are planning to initially do some IP surveys to identify sulphide conductors which will then be targeted with diamond drilling. The elevation is low and the access is good so we expect to be able to work year round at Chunkei.
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Can you summarise the expected news flow for Kentor over the next few months?
MD Simon Milroy
Kentor has a busy period ahead. We expect significant news flow over the coming months. This includes further drilling results from Savoyardy, mapping and resampling of the underground adits at Savoyardy and the commencement of drilling from the Savoyardy underground.
We also expect the commencement of diamond drilling at Akbel and progress on the Geothermal Energy projects.
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Thank you Simon.
About KGL Resources Ltd
KGL Resources (ASX:KGL) is an Australian mineral exploration company focussed on increasing the high grade Resource at the Jervois Copper-Silver-Gold Project in the Northern Territory and developing it into a multi-metal mine.
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