Breaking News: Kenadyr Announces Partial Drill Results from Drill Hole DHSZ-1-17 at the South Zone

Kenadyr Mining (Holdings) Corp. (OTCQB: KNDYF) (TSX-V: KEN) (the “Corporation” or “Kenadyr”) is pleased to announce that drilling at the South Zone of Kenadyr’s  100% owned Borubai License, Kyrgyz Republic, has intersected widespread  gold mineralization including 40 meters at 6.17 g/t Au.

The  South Zone is directly adjacent to Zijin Mining Group Co Ltd.’s  (“Zijin”) Taldy Bulak Levoberejnyi (“TBL”) Mine deposit, currently in  production.

Initial  drilling was designed to intersect an area which was previously drilled  by the Soviets between 1970 and 1990, and which intersected significant  gold mineralization. The current drill hole provides support for the  validity of the historic Soviet results and indicates that widespread  gold mineralization may exist on Kenadyr’s license directly adjacent to  (within 100 meters of) the TBL Mine.

The  South Zone is open in three directions and to depth, and there are  strong indications that it connects to the TBL deposit. Core recovery is  >95% and all intervals have been assayed using fire assay methods at  an internationally accredited laboratory (ALS Global).

The  hole has reached its target depth of 850 meters and the remainder of  the hole is being split by diamond saw and prepared for assay.

Partial Assay Results received to date are listed in the table below:

From To Intervals
(meters)
Grade
Au g/t
598 m 615 m 17 meters 1.76 g/t Au 638 m 678 m 40 meters 6.17 g/t Au 714 m 719 m 5 meters 5.8 g/t Au 719 m 850 m 131 meters assys pending

Readers  are cautioned that the results from a single drill hole may not be  representative of the mineralization on the Borubai Project. Complete  drill results will be announced once they become available.

Kenadyr  is in a strong position having a robust balance sheet, no debt nor  significant payments owing, and a supportive institutional shareholder  base. The management team has extensive in- country operational  experience, and merger and acquisition expertise.

Dr. Alexander Becker, Kenadyr Chief Executive Officer, states, “Partial  results from our initial 2017 drill hole at Borubai have exceeded our  expectations. Based on the geometry of the adjacent TBL orebody, it is  the Corporation’s interpretation that these intersections are close to  true widths. Subject to obtaining additional drill results, the  Corporation believes that the mineralization encountered in our initial  drill hole validates and supports the findings reported in historic  drilling and indicates that the mineralization being mined at the  adjacent TBL Mine may continue onto Kenadyr’s Borubai License.”

Kenadyr’s  Borubai project comprises a 100-per-cent-owned exploration licence  covering a contiguous 164-square-kilometre land package that encircles  the Zijin/Kyrgyz/Altyn newly constructed and operational TBL mine, in  northern Kyrgyz Republic.

Zijin,  the majority owner of the TBL mine, is one of China’s largest gold  producers, second- largest copper and zinc producer, as well as a major  producer of tungsten and iron ore. In 2015, Zijin’s sales revenue and  net profit attributable to the parent company reached $11.44-billion  (U.S.) and $255-million (U.S.), respectively, ranking first and second,  respectively, among 14 major global public gold miners (source: Zijin  website). According to a news release published by Zijin. on Aug. 15,  2011, the national resources table of Kyrgyz Republic stated that the  TBL field contains (C1 plus C2) 8,906,100 tonnes of gold ore (the  average grade is 7.23 grams per tonne) and the gold metal volume is  64,420.5 kilograms, among which the C1 grade (initial mining reserve) is  4,949,754 tonnes of gold ore (the average grade is 7.02 grams per  tonne) and the gold metal volume is 34,754.6 kilograms. The TBL mine is  designed to produce 125,000 ounces of gold per annum. The TBL mine  deposit is directly adjacent to Kenadyr’s initial drill target, the  South Zone, which was previously drilled by the Soviets, with drilling  on the Bourubai License exceeding 98,000 meters.

Readers  are cautioned that the resource and reserve estimates relating to the  TBL mine do not extend to the Borubai project. Kenadyr has not  independently verified the information with respect to the TBL mine  provided in this news release and it is not necessarily indicative of  the mineralization on the Borubai project. Kenadyr is not aware of the  resource and reserve categories, or the key assumptions, parameters and  methods used to prepare the estimates on Zijin’s TBL mine.

Kenadyr’s  Borubai project, which surrounds the TBL mine, has been the subject of  extensive historic exploration including drilling (98,200 metres in 184  diamond drill holes), trenching (13,800 cumulative metres), bulldozer  cuts (33,400 cumulative metres), geologic mapping at 1:25,000 and  1:50,000 scales, ridge, spur and grid soil geochemistry for  multi-elements (14,200 samples), rock geochemical sampling (2,320  samples), pan concentrate sampling (790 samples), 100 metres of adits,  and 184 metres of underground raises. Additionally, the entire area has  been subject to airborne magnetic, radiometric and gravity surveys, as  well as ground-based resistivity and induced polarization surveys.  Additional high grade gold targets exist throughout the Borubai license.  The entire license has been subject to extensive geochemical and  geophysical surveys, with follow up trenching and drilling on only a few  of the identified anomalies.

 

Disclaimer

 

Leave a Comment