Georgian Mining subsidiary enters agreement and focuses on gold project

Georgian Mining Corp announced that its subsidiary company Georgian Copper & Gold (GCG) has entered into a memorandum of understanding (MOU) relating to a project in southern Georgia.

The agreement at the Kvemo Bolnisi (KB) gold-copper project specifically concerns the mining and processing of ore from the Kvemo Bolnisi East target (KBE) and has been entered into by Georgian Mining’s 50% owned subsidiary GCG and RMG Gold.

RMG Gold is the production company of Georgian Mining’s partner Caucasian Mining Group (CMG).

Georgian Mining’s drilling programme for the year will focus on developing a mining operation at KBE gold zone 2, with ore being taken to RMG’s nearby processing plants at Madneuli and Sakdrisi as per the MOU.

Greg Kuenzel, managing director of Georgian Mining Corp, said: "Initial production from the gold oxides will serve as a starter operation and pave the way for the subsequent exploitation of the primary copper-gold sulphide ores at KBE. We also firmly believe that KB and the licence area as a whole have excellent potential for a major discovery of large-scale epithermal gold-copper mineralisation, and this is the focus of our wider exploration programme."

Drilling at KBE is expected to last for two months and will commence in April, while additional bulk sampling, metallurgical testwork, site investigation and environmental studies will continue alongside the drilling.

"With an agreed path towards development of the KBE operation, a strengthened relationship with our partner and further regional exploration planned across the Licence, 2018 promises to be a pivotal year as we look to build a portfolio of significant copper-gold assets in the prolific Tethyan Belt," said Kuenzel.

As of 0822 GMT, Georgian Mining Corp’s shares were up 5.70% at 10.57p.