Mining Investments Resources PLC Update to Investment Activities (8612Z)

TIDMMIR

RNS Number : 8612Z

Mining Investments Resources PLC

13 March 2013

Mining Investments Resources plc

Update to Investment Activities

Mining Investments Resources plc ("MIR" or the "Company") is pleased to provide an update regarding its direct investment activity. MIR's emphasis over the last few months has been to seek, evaluate and enter into negotiations to acquire interests in projects in the Khabarovsk and Primorsky regions in Far Eastern Russia.

The current focus of the Company is on the following two projects:

Primorsky Silver Project

MIR is in negotiations to invest in a company which has a controlling interest in a silver mine in the Primorsky region of Russia and three exploration licences located in the vicinity of the mine. A letter of intent has been entered into which is conditional on due diligence and negotiation of an investment agreement, which will define the terms of the transaction.

The investee company has represented that the mine operated during the period 1991 to 1996 and produced 220,000 tonnes of ore at a grade of 405 gms/tonne resulting in 2.8 million ozs of silver. The ore was processed though a small mill which has a capacity of approximately 70,000 tonnes per year and produced a concentrate which was sent to a smelter. The average silver recovery during the period 1991 to 1996 was 78.4%.

The business plan presented to MIR envisages that the mine can be placed back into production within a year at a cost of less than $1.5 million and also outlines plans for further exploration activity and expansion of the mill capacity. The business plan still has to be verified by MIR.

According to information reviewed by the Company, the remaining reserves of the mine, based on Russian classifications, have been estimated at A, B, C1 and C2 resources of 756,000 tonnes grading 386 gms/tonne containing 292 tonnes (approx 9.1 million ozs) of silver and 318 kilogrammes (approx 9,900 ozs) of gold of which C1 reserves are 219,000 tonnes grading 604 gms/tonne containing 132 tonnes (approx 4.1 million ozs) of silver. The exploration potential is illustrated by resource estimates in the Russian Prognosticated P1 category that are estimated at 1,238,000 tonnes at a grade of 334 gms/tonne providing contained silver of 413 tonnes (12.9 million ozs) and 1,639 kilogrammes of gold (50,000 ozs) and total prognosticated resources are estimated at around 900 tonnes (28 million ozs) of contained silver.

Khabarovsk Gold Exploration

MIR has progressed discussions with Artel Vostok relating to the Strategic Alliance Agreement announced on 5 November 2012. Following a review of geological work undertaken by Artel Vostok in 2012, an area adjacent to one of the main rivers which Artel Vostok are mining for alluvial gold has been selected for further investigation. The river has been a prolific source of alluvial gold and was the source last year of the largest gold ingot found in the Far East of Russia (7.6 kilogrammes) which is currently in the jewellery collection of the Kremlin.

Artel Vostok is applying for an exploration licence in the area selected and the Strategic Alliance Agreement envisages that MIR will acquire an interest in the licence once it is granted. The exploration work would be undertaken by Artel Vostok.

Next steps

MIR intends to undertake technical due diligence prior to progressing either of these investments and provide an evaluation in the form of a competent person's report.

Other projects

In addition to the projects above, MIR has also evaluated six other precious metals investment opportunities in the Far East of Russia and is in various stages of discussions in relation to some of these projects.

Russian Resource Estimates

Russian resource estimates are not directly comparable to western resource estimates and investors cannot assume that the Russian resources quoted in this announcement will be converted to resources when calculated using JORC standards.

Qualified Person

The Information contained in this announcement has been reviewed and approved by Dr Pavel Kepezhinskas on behalf of MIR. Dr Kepezhinskas is a Qualified Professional Geologist, as defined by the Toronto and Vancouver Stock Exchanges.

Michael Nosworthy, Chairman of MIR commented, "we believe the Primorsky Silver Project would provide MIR with an opportunity to invest in a high grade silver mining project which could be quickly put into production at a low capital cost. The project offers considerable upside potential to prove up additional high grade resources and is located in an area of Russia with good access and infrastructure. The Khabarovsk gold project has resulted from ongoing cooperation with Artel Vostok, an important and well respected company in the region, and offers the potential to find significant gold resources which are believed to be the source of gold for one of Russia's prolific alluvial rivers."

Enquiries

 
                        Mining Investments 
Michael Nosworthy        Resources plc         +33 675657274 
 
                        Mining Investments 
Steve Roberts            Resources plc           07812043436 
 
 
                        Northland Capital 
                         Partners Limited 
Luke Cairns / Matthew    (Nomad and Joint           020 7796 
 Johnson                 Broker)                        8800 
 
                        Peterhouse Corporate 
Peter Greensmith         Finance Limited            020 7469 
 / Eran Zucker           (Joint Broker)                 0932 
 
Jonathan Anderson       Investor Relations       07950410680

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAADAFSXDEAF

Mining Inv Re (LSE:MIR)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024