Sydney, Mar 21, 2008 AEST (ABN Newswire) - Tamaya Resources Limited (ASX: TMR)(PNK: TMAYF) advises that it has completed the first stage of the Company's assessment of the Lichkvaz Project, Armenia (TMR 86.2%).
In 2007, Tamaya announced a takeover offer for Iberian Resources Limited ("Iberian"), and at the close of the offer Tamaya had received acceptances representing 86.2% of the issued capital of Iberian. At the time of the offer, Iberian's principal activities were the development of the Lichkvaz gold project in Armenia.
Based on the review of the Lichkvaz Project, the boards of Tamaya and Iberian have decided that the full potential of the project will be better realised through an extensive drilling and comprehensive metallurgical testing program to be undertaken in 2008.
The board of Tamaya has decided that fast tracking the initial commissioning of the Lichkvaz Project would be imprudent prior to determining the full potential of the project. A decision on the revised date of commissioning will be delayed until after an extensive drilling and comprehensive metallurgical testing program has been undertaken. This will enhance the project by providing further certainty as to the mine plan and processing for when the project commissioning is implemented.
Tamaya's decision is based on wanting to develop the orebody and the overall project in a way that will maximise shareholder returns.
In Armenia, Executive Chairman Mr Hugh Callaghan said at a briefing today of management, staff and other stakeholders at the Lichkvaz Project, that as a result of this decision the following actions have been taken:
- the management and workforce in Armenia have been advised that the planned development of commercial production at Lichkvaz will be deferred;
- the focus at Lichkvaz will move to proving-up and testing the current resource, and refining the geological model;
- funding of an initially estimated requirement of US$45 million will not be sought by Tamaya for the project financing of Lichkvaz during 2008; and
- the company will close the small scale mining and processing plant and realign the local workforce to focus on drilling and development activities.
The new business structure will take effect 1 July 2008, and all non-core exploration and capital activities will be scaled back over the June 2008 quarter. 2008 drill campaign commenced Tamaya published its first consolidated Group resource in late 2007. This included a resource statement for the Lichkvaz Project (TMR 86.2%) with an Inferred Resource (JORC) of 3.0Mt at 7.0 g/t Au, 31.5g/t Ag, and 0.5% Cu for 675,166 oz gold, at a cut off grade of 2.0 g/t gold.
The planned 45,000 metre 2008 drilling campaign to extend and upgrade the resource has already commenced, and drilling is scheduled to continue throughout the year. The exploration campaign is designed to both clarify metallurgical variability and the best treatment method as well as deposit size and grade.
An expansive drill program will drill out the open pit position at the top of the Lichkvaz ore system to provide Tamaya with a more detailed insight into the extent and nature of the mineralisation.
The current focus is on surface drilling which is testing for extensions of veins to surface and for any other economic mineralisation, and Tamaya expects that the underground drilling component of the campaign will begin early in the September 2008 quarter.
The estimated Mineral Resources were prepared in accordance with the 2004 Edition of the "Australasian Code for Reporting of Exploration Mineral Resources and Ore Reserves" (the "JORC Code"). The information in this report that relates to Mineral Resources is based on information compiled by Mr. Colin Lutherborrow (who is employed by Zilloc Pty Ltd) and is a member of the Australasian Institute of Mining and Metallurgy. Mr. Lutherborrow has sufficient experience which is relevant to the style of mineralization, the type of deposit under consideration, and the activity that he has undertaking to qualify as a Competent Persons as defined by the JORC Code. Mr. Lutherborrow consents to the inclusion in this report of the matters based on the information that he has provided in the form and context in which it appears.
Contact
Hugh Callaghan
Executive Chairman
Tamaya Resources Limited
Media: Fortbridge
Bill Kemmery
TEL: +612 9331 0655 or 0400 122 449
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