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India-focused gold miner Kolar Gold (LSE:KGLD) Limited said Wednesday their JORC-compliant gold resource more than trebled, following a completion of an 8,000-metre drill programme in the South Kolar licence area.
In a statement released to the public and the financial authorities, the new resource estimate now stands at 195,000 ounces of gold at an average grade of 1.7 grams per tonne (g/t) recoverable from 3.46 million tonnes ore, compared to the 61,527 oz. historic gold resource defined by Mineral Exploration Corporation Limited (MECL) in 1984.
“The new resource is derived from a combination of historic underground channel samples, historic Mineral Exploration Corporation Limited (“MECL”) drilling and new validation drilling by KGL as part of a 8,000m drill programme completed over the South Kolar licence area,” Kolar Gold stated.
Mallappakonda Deposit
The Mallappakonda Deposit, part of the South Kolar licence Kolar Gold acquired, was discovered in the 1970’s during an exploration conducted by the Geological Survey of India.
Kolar Gold set aside £3.3 million to fund the exploration and evaluation activities in the area located in the Mallappakonda Hill south of the historically gold producing Kolar Gold Fields operated by Bharat Gold Mines Limited, until it closed in 2001.
Total measured and indicated resource reached 117,000 oz. of gold at an average grade of 1.80 g/t and a further 79,000 oz. at an average grade of 1.72 g/t was inferred, totalling the resource to 195,000 oz.
COO Comments
Kolar Gold Limited’s Chief Operating Officer, Richard Johnson, commented on the development, saying:
“I am very pleased to announce Kolar’s maiden resource statement at our Mallappakonda deposit since the Company was admitted to AIM last year… There remains considerable scope to add additional ounces to the Mallappakonda deposit and resource drilling will continue as part of the Company’s new 160 hole drill programme at South Kolar. We look forward to providing investors with further operational updates once additional assay results are received.”
Company Spotlight
Kolar Gold Limited is a newly listed gold exploration and development company with interests in India.
The company was incorporated in the UK and its shares trade on the Alternative Investment Market of the London Stock Exchange.
Shares of Kolar Gold were up 6.2% 8.625 pence a share at 12:30 GMT, following the disclosure.
