Kryso Resources looks deeper at 2.8 million ounce Pakrut Gold Project

Junior gold outfit Kryso Resources (AIM:KYS) has had a bit of a rethink about the 2.8 million ounce Pakrut Gold Project in Tajikistan.  Pakrut is approximately 112 km north-east of the capital city Dushanbe, and sits in the prolific Tien Shan gold belt which runs through Uzbekistan, Tajikistan, Kyrgyzstan and China.


The Bankable Feasibility Study (BFS) - which is the cornerstone study required before project finance to develop a mine can be secured – was initially looking at a mine development that would see both an open pit and underground mine operating in parallel.

However this afternoon Kryso noted that recent high grade drill results from Ore Zone 1 had shown that the mineralization widens at depth, sparking a rethink from the company and the Beijing General Research Institute of Mining & Metallurgy (BGRIMM) who are consulting on the study.

Kryso and the BGRIMM now believe that a more robust mine development plan will be forthcoming if Pakrut is developed solely as an underground gold mine to exploit the widening underground gold structure. Previous drill results included 123.7 meters at 6.1 grams per tonne gold, 42 meters at 11.2 grams per tonne gold and 50 meters at 5.7 grams per tonne gold. Ore Zone 1 is the largest ore zone identified at Pakrut to date and remains open at depth.

Originally, the BFS was scheduled for completion by the end of 2009, but was pushed back to ‘early 2010’ after a delay in calculating the most recent resource statement (released November 2009).  Shares in Kryso slipped this afternoon after the company confirmed the revision in the BFS study would push the completion date back to the second quarter.

“It is anticipated that an underground approach would deliver superior economics relative to a combination of open pit and underground mining and would also enable the early exploitation of higher grade ore found at depth, with lower grade near surface ore blended in as required to produce optimal feed for the mill,” Kryso stated.

Kryso went on to remind investors that the remainder of the BFS was ‘approximately 80% complete’. BGRIMM are currently finalising capital and operating cost estimates.

`The reorientation of the Pakrut BFS around an underground mine is an essential step towards getting the best out of the Pakrut gold project and the delivery of an optimal mining case is a key precursor to securing financing for the project’, Trevor Davenport, Non-Executive Chairman and interim Managing Director of Kryso added.

http://www.proactiveinvestors.co.uk/companies/news/15113/kryso-resources-looks-deeper-at-28-million-ounce-pakrut-gold-project-15113.html