Kenadyr Mining Corp. (TSX-V: KEN) (the "Corporation" or "Kenadyr") is pleased to announce it has finalized a drill contract with Quest Exploration Drilling ("QED").
Kenadyr is in a strong position to embark on this upcoming program, having a strong balance sheet, no debt nor significant payments owing, a strong institutional shareholder base and a management team with extensive in-country operational experience, and merger and acquisition expertise.
QED and its predecessor company have a 30 year history and QED has grown their business to be an industry leader in the provision of drilling services to varied clients. QED's services includes diamond drilling, reverse circulation (RC) drilling, RC grade control, geothermal, geotechnical drilling, water boring and slope stability solutions. QED acts as a drill contractor for multiple public and private companies around the world including major, mid-tier and exploration focused companies.
Drilling is expected to commence within the next 90 days and the updated contract with QED reflects a focus on high impact areas of the project. The drill program will include both core drilling and reverse circulation drilling. A focus of the initial drill program is to establish correlation between extensive previous historical Soviet drilling and modern drilling. Drilling at the Borubai project has the potential to increase both the size, and the grade, of the mineralization (from historic numbers) as a result of increased core recovery and modern drilling and assaying (Fire Assay versus ICP analysis) techniques. Core recovery during Soviet drilling averaged only 60%.
In addition to initial drilling in the high priority South Zone, an area of mineralization directly adjacent to the Zijin Mining Group Co Ltd.'s ("Zijin") Taldy-Bulak Levoberejny ("TBL") mine, Kenadyr will undertake drilling, bull dozer trenching and sampling cuts on the SS Zone and SS Trend. As well as drilling, the Corporation intends to take approximately 1,250 channel samples and 2,200 soil geochemistry samples in this area.
Kenadyr's Bourbai project comprises a 100-per-cent-owned exploration licence covering a contiguous 164-square-kilometre land package that encircles the Zigin/Kyrgyz/Altyn newly constructed and operational TBL mine, which was built at a cost of $296-million (U.S.), 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.