Kentor Gold's Australian success continues with initial 200,000 gold ounce resource at Gabanintha

With the dust only just settling on the Kentor Gold (ASX: KGL) takeover of the Australian based Jinka Minerals, Kentor has moved these newly acquired projects forward very quickly and has already established a near three quarter of a million gold ounce resource in Australia.

Highlighting the success of the deal - Kentor has established a second JORC Resource in as many weeks, with the Gabanintha Gold Project hosting; 4.5 million tonnes at 1.4 grams per tonne (g/t) for 203,000 gold ounces at a 0.5 g/t cut off.

Better still, there is a high grade component of 1.3 million tonnes at 2.9g/t for 121,000 gold ounces.
The resource estimate is based on historical drilling which was targeting oxide gold resources only, with most of the previous drilling terminated as soon as the holes encountered copper mineralisation.

Boosting the potential - the resource is open down dip in all of the old pits, most of which were only mined to around sixty metres. Gabanintha consists of six pits in total.

Kentor is already targeting gold and copper depth extensions below the pits in a new drilling campaign.

Adding an extra bit of spice, Kentor is already  undertaking a Feasibility Study with the aim of commencing gold production in mid-2012 at the nearby 500,000 gold ounce ATW Gold Corporation (CVE: ATW) Burnakura Gold mine.

With the Gabanintha resource added to Kentor's other Australia projects, the company now holds 730,000 gold ounces locally, and another 680,000 at the Andash operations in the Kyrgyz Republic - for a total of over 1.4 million ounces.

Simon Milroy, managing director, told Proactive Investors today that the major upside for not only the Australian based operations, but also the Kyrgyz Republic, is that all of the company's projects are based on granted mining leases due to historical mining - and therefore are not subject to native title.

Jervois Base metals project - 113,000t copper and 7.6Moz silver

The results from Gabanintha follow hot on the heels from another positive announcement for Kentor in Australia.

Earlier in the month at the Jervois Base metals project in the Northern Territory the company announced a maiden Inferred Resource of; 8.8 million tonnes at 1.3% copper and 26.7g/t silver.

Hellman & Schofield conducted the review, which provides 113,000 tonnes of contained copper and 7.6 million ounces of contained silver.

Better still - the news flow at Jervois is set to pick up in the second half of the year with diamond drilling assays expected within a month, to be followed by a resource upgrade later in 2011.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17937/kentor-golds-australian-success-continues-with-initial-200000-gold-ounce-resource-at-gabanintha-17937.html