Kolar Gold's JORC compliant resource increases at India mine

AIM-listed miner Kolar Gold reported that the resource at its Indian mine has increased since earlier this year due to improvements at the site and the addition of the underground prospect.

Geomysore Services, which Kolar Gold owns a 22.31% stake in, commissioned Golder Associates to review the drilling programme at the Jonnagiri mine in India and estimated an Australasian Joint Ore Reserves Committee Code (JORC) compliant resource of 351,000 ounces in aggregate at the east and west blocks of the site, a significant increase from the 150,000 ounces found at the east block reported in March.

An economic feasibility study of building a producing open pit gold mine from the east block at Jonnagiri, which Geomysore has a 30-year licence to mine 365,000 tonnes of gold ore per year, is also currently being undertaken by Golder Associates, due to be completed before the end of the first quarter next year.

Chief executive Cameron Parry said: "Kolar Gold continues to progress its threefold strategy; build value in Kolar's Indian gold interests, establish fintech applications that can leverage off Kolar's gold focus in India, and, as recently secured in Finland, develop high grade gold assets in a second jurisdiction."

The JORC resource at Jonnagiri was estimated using a 0.5 grammes per tonne cut off for potential open pit activities and a two grammes per tonne cut off for potential underground activities at the west block.

Shares in Kolar Gold were up 9.66% to 1.59p at 1055 BST.