Tethyan Resources PLC Suva Ruda Update (8773H)

TIDMTETH

RNS Number : 8773H

Tethyan Resources PLC

13 June 2017

13 June 2017

TETHYAN RESOURCES PLC

SUVA RUDA PROJECT UPDATE

Tethyan Resources plc ("Tethyan" or the "Company"), the project developer focused on the Western Tethyan belt, is pleased to announce that it has signed an access agreement with the Municipality of Raska (the "Agreement") for the use of roads, and received regulatory approval for all drilling pads required for the 2017 drilling campaign on the Company's Suva Ruda Project, located in Southern Serbia.

Overview

-- Access permissions have been granted to Tethyan for the use of public roads for drilling rigs and equipment

   --      The Company continues to positively engage with local communities 
   --      The current drilling programme is progressing smoothly, with three drill holes completed 

-- Mapping and soil sampling programmes have commenced at additional exploration targets within the Suva Ruda exploration permit.

Peter Mullens, CEO of Tethyan, commented:

"Tethyan has been working hard on establishing positive relationships with local communities for the last nine months, and the formal documentation for the use and maintenance of public roads is now in place.

"This local support allows Tethyan to progress its 2017 field programme with drilling, Induced Polarisation (IP) geophysics, surface mapping and geochemistry at Rudnitza and elsewhere within the Suva Ruda permit.

"Our community team will continue to regularly engage with local stakeholders and we look forward to an ongoing successful working relationship.

"We expect to have completed our current drilling programme by the end of June and I will update the market in due course."

The Agreement

The aim of the Agreement with the Municipality of Raska and its public utility company is to provide Tethyan, and its contractors, with access permissions where vehicle weights exceed normal limits, such as is the case with drilling rigs and equipment. In addition, it regulates the manner in which the repair of damage to roads, caused by Tethyan, will be compensated for by the Company.

In parallel, Tethyan has provided a signed representation and warranty document to the local community of Rudniza Village in relation to the use and maintenance of local roads, in accordance with, and supplementary to, the issued approval granted by the above agreement.

Tethyan has received surface right agreements with Srbijasume the State Forestry Agency for the 2017 drilling programme for preparing access roads and drilling pads, Rehabilitation work on existing roads and pads not used anymore is taking place.

Community Engagement

The documentation signed is the result of positive engagement between Tethyan, local leaders and surrounding communities, which has been ongoing since September 2016. Community newsletters are regularly prepared and disseminated locally, and policies and procedures regarding land access and damage compensation, grievance management and community support initiatives are publicly disclosed.

Tethyan's Sustainability Policy states that it understands the importance of contributing to the social and economic development in the areas in which it operates. Additionally, it says that Tethyan shall:

-- Build a common platform for dialogue and participation with all stakeholders on projects that benefit the communities associated with its operations

-- Engage with local authorities, community representatives, inter-governmental and non-governmental organisations and other interested parties to support its work

Drilling Programme

The planned drilling, as announced by the Company on 25 April 2017, is currently underway and operating smoothly. It is expected that approximately 2,000 metres of diamond core drilling, at four drill holes, will be completed by the end of June 2017. Three of the drill holes are already completed, the first results of which are also expected by the end of June.

In addition, the Company's geologists are currently mapping and completing stream sediment and soil sampling programmes over additional exploration targets within the Suva Ruda exploration permit. Preparation for a significant TITAN Induced Polarisation ("IP") geophysical survey, to be completed later this summer, is underway, beginning with mapping of land ownership and the calculation of potential compensation requirements where crops or land may be disturbed.

About Tethyan

Tethyan is an AIM quoted junior exploration company exploring for copper and gold within the Tethyan mineral belt. Tethyan has an experienced Board and technical team. Currently Tethyan holds several licences in Serbia and is looking for other copper and gold projects in Eastern Europe, specifically Serbia and Bulgaria. Southern Arc (TSXV: SA), a strategic investor in Tethyan, will hold 29.9 per cent of the Company on completion of the Southern Arc Subscription and the Newmont Acquisition. Southern Arc brings considerable corporate and exploration experience to Tethyan.

For further information please contact:

 
 Tethyan Resources PLC            [phone] 
 Peter Mullens (CEO)              [e-mail] 
 
 Cairn Financial Advisers 
  LLP                             [phone] 
 James Caithie / Sandy 
  Jamieson 
 
 Blytheweigh 
 Tim Blythe / Camilla Horsfall    [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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June 13, 2017 02:01 ET (06:01 GMT)