Georgian Mining discovered 'increased potential' at GZ2 site

Exploration and development firm Georgian Mining has wrapped up an exploration programme on the edges of its GZ2 mineral resource.

After stepping out 80 metres west from the previously discovered mineralisation at GZ3, itself 150 metres to the west of GZ2, Georgian saw results from its new step-out holes turn in high-grade polymetallic gold mineralisation, indicating that a "significant mineralisation" was open at depth.

Further near-surface gold oxide mineralisation was intersected on the periphery of GZ2, significantly extending the interpolated mineralisation and potentially representing "yet another epithermal centre" on its Kvemo Bolnisi license with a discrete feeder breccia pipe at depth.

Mike Struthers, Georgian's chief executive, said, "Drill results continue to expand the footprint and validate the new geological model we have put in place for Kvemo Bolnisi, specifically the presence of a large scale epithermal gold-copper mineralisation system with multiple mineralising centres."

"Mineralisation remains open in various directions, and it will be very interesting to see how the scale of this system expands with further drilling, including the potential link across to Kvemo Bolnisi West," Struthers added.

By Monday afternoon, Georgian shares had lost 13% to 11p.