Kryso Resources Pakrut Gold Deposit License Gets Approvals

Tajikistan Materials 1 September 2011 18:00

Kryso Resources Plc (KYS.LN), a mineral exploration and development company with projects in Tajikistan announced Thursday the environmental, geological, reserve and ministerial approvals for the mining license for the Pakrut gold deposit have been obtained, Dow Jones reported.


-The application is currently awaiting final Tajik government approval at presidential level

-In October 2010 LLC Pakrut, the Company's 100% owned Tajik subsidiary, applied for a mining license for the Pakrut gold deposit.

-LLC Pakrut's current exploration and trial mining license allows it to explore the Pakrut licensed area and to mine at the rate of 300,000 tons per annum until April 2014.

-LLC Pakrut has applied for a license that will allow it to mine up to a maximum rate of 660,000 tons per annum for 20 years.

-The Beijing General Research Institute of Mining & Metallurgy or BGRIMM is in the process of finalizing detailed designs for construction of the Pakrut mine and Kryso is ready to begin mobilizing further equipment to site and upgrading the road to the project.

-In addition, the company has issued a tender for the construction of the mine and received in response proposals from four large Chinese construction companies.

-The company is now in the process of negotiating the terms of the bids with each of the four construction companies.

-The company had anticipated that construction would commence at Pakrut during the second half of 2011 and that production would begin by the end of 2012, however this timetable has been impacted by the fact that it is taking longer than expected to receive the Pakrut mining license from the Tajik government.

-Issue of the mining license is required before the finalization of mine finance and commencement of construction can occur. Further updates in this regard will be provided in due course.

-A total of 18 drill holes have been completed within Kryso's Pakrut licensed area so far this year, and five core drill rigs are currently operating.

-Two holes have been drilled at Pakrut, six holes at Eastern Pakrut, four holes at Central Rufigar and six at Upper Rufigar. Currently three drill rigs are operating at Pakrut, one at Eastern Pakrut and one at Central Rufigar.

-Shares at 1134 GMT down 0.6 pence, or 4.3%, at 13.9 pence.