Palayan Resources Provides An Overview Of 2018 Kokkus Drill Results And Plans For 2020
Windermere, FL, July 21, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Palayan Resources, Inc. (OTC: PLYN) (“Palayan” or the “Company”), an emerging growth gold mining company that engages in the acquisition, exploration, and development of mineral properties, is pleased to provide shareholders with an overview of the 2018 drill results on the Kokkus Project and the Company’s plans for the remainder of 2020.
“2020 has been a year of transition for Palayan,” said James Jenkins, CEO of Palayan. “The Company made the strategic decision to acquire the Kokkus Project, thereby augmenting its property portfolio.”
“A major factor in our decision to move on the Kokkus Project was the available drill results from 2018, which we felt provided a solid foundation for what we believe can be a first-class gold property. With the price of gold rising and investors looking for more security, gold provides a commodity that has historically continued to increase in value,” stated Jenkins. “It is with this backdrop that we decided to pursue and acquire the Kokkus Project.”
*The historical mineral resource estimate (“Historical Estimate”) described and referenced in this release was prepared by and reported in a technical report prepared by Barry Davis, a related party of Palayan by virtue of being Chief Operating Officer and Director. The Historical Estimate is based on a JORC Internal Mineral Resource Estimation Report dated October 2019 detailing the 2018 work on the Kokkus Project. This historical report was prepared by Barry Davis, who, in 2018, was a related party of Scythian Mining Group Ltd. - the parent of SMG-Gold B.V. An independent qualified person has not done sufficient work to classify any Historical Estimate described herein as a current mineral resource or mineral reserve and Palayan is not treating the Historical Estimate as a current mineral resource or mineral reserve. In order to consider the Historical Estimate as current mineral resources or mineral reserves, Palayan needs to retain an independent qualified person to verify historical drilling and assaying methods and validate historical results, add any drilling and assaying or other pertinent geological information generated since the last estimation, and complete an updated resource estimate and a new technical report.
Kokkus Project Highlights
According to an internal, non-independent JORC report based on the 2018 drilling and sampling (the “2018 JORC Report”), the Historical Estimate at Kokkus is estimated to be at least 199,000 ounces Au (JORC indicated and inferred) based on only over 250 meters of Au mineralization on Zone #1, which is now mapped, soil and rock chip sampled and is at least 750 meters long. Also, drilling in 2018 intersected a new Au mineralized zone parallel to Kokkus # 1, which is now identified as Kokkus # 2. The Au mineralization is controlled by a mega fold, which has a length of 2.8 km and width of 900 meters, similar to the Sukhoi Log deposit in Russia, except it is rotated 90º to be flat laying. It is expected that, similar to Sukhoi Log, the bulk of the Au mineralization will be controlled by the axial plane cleavage along the fold hinge. It is believed that there are two populations of gold at Kokkus, free gold, which was in the original sedimentary host rocks, and gold associated with pyrite, which is driven by a massive granodiorite intrusion below Kokkus. This intrusion has remobilised the gold along the axial plane cleavage thus increasing the overall gold grade, by concentrating the original gold as well as adding pyrite rich gold.
Location and Property Description
Kokkus SSRUC (Sub Soil Resource Usage Contract) No. 2068, granted 2006, runs through August 2022. During 2020 and 2021, subject to having sufficient funding available, it is planned to complete drilling to outline a resource to start Au production, and an initial PFS/FS is expected be completed to convert the SSRUC (exploration License) into a Mining Permit in 2021.
The Kokkus SSRUC is located in a rural area with the closest town, Atasu, 107 km to the south-east by a good bitumen road, with the last 15 km being a dirt track. Atasu is 400km west of Karaganda via bitumen road. This is the Oblast (state) capital and closest major airport.
There is a 110Kw power line across the orebody, and abundant fresh water nearby.
Mineral Resource Estimate
During the calculation, the database used was digitized and verified based on primary historical documents, as well as data from holes drilled in 2018 (8 Diamond holes and 4 RC holes) by Scyhtian Mining Group Limited (SMG) and managed in Micromine’s Geobank data management software.
The contouring of ore mineralization was carried out on the basis of sampling data using Micromine software. The cut-off grades used were of 0.3g/t and 0.4g/t Au, the thickness of the internal waste included into the ore mineralization contour was 3 meters, in exceptional cases 4 meters, where a complex geological structure was observed, minimum width of ore was 2 meters. The inverse distance method (IDM) was used to evaluate mineral resources.
The block size used was 5m x 5m x 5m although this may change in the future as more drilling is completed along strike.
Sampling data from the following exploration works was used for resource estimate:
Diamond drilling 43 drill holes
RC holes 4 holes
Exploration trenches 29 trenches
All SMG assays were 50g Fire Assay with AAS finish.
Below is Table #1 showing the resource models at both COG of 0.3g/t Au and 0.4g/t Au.
The Historical Estimate at Kokkus is over 199,000 ounces Au @ 1.27g/t Au JORC Indicated & Inferred, using a COG of 0.3g/t Au, and a Wireframe Model and 187,211 ounces Au @ 1.19g/t Au using a Block Model resource calculations, from 47 drill holes down to 140 meters. The Historical Estimate was over a strike length of only 250 meters, with a possible total strike extension of mineralization from mapping, alteration & soil samples being around 8km. The Historical Estimate is shown in Table #1.
|Table 1: Kokkus Resource with both 0.3 & 0.4 g/t Au COG|
|COG 0.3g/t Wire Frame Model|
|Category||Volume||SG||Tonnes||Grade g/t Au||Au Kg||Au Oz|
|COG 0.3g/t Block Model|
|Category||Volume||SG||Tonnes||Grade g/t Au||Au Kg||Au Oz|
|COG 0.4g/t Au Wireframe Model|
|Category||Volume||SG||Tonnes||Grade g/t Au||Au kg||Au oz|
|COG 0.4g/t Au Block Model|
|Category||Volume||SG||Tonnes||Grade g/t Au||Au kg||Au oz|
|If a COG of 0.4g/t Au is applied the grade increases to over 1.5g/t Au in both calculations|
Historical exploration was first carried out at Kokkus during the Soviet period in 1980’s followed by further drilling and metallurgical test work in 1992-93. Testing totaled 29 trenches and 35 diamond drill holes and results of this early work was verified by recent drilling completed in 2018 of 8 diamond drill holes and 4 RC drill holes, all done to JORC QAQC standards. The best drill hole in 2018 was 84.1 meters @ 2.26g/t Au starting at 23m.
Based on historical drilling, testing and sampling, the Kokkus has exploration potential in all directions, depth, width, east and west as only 5% of one zone has been drilled. Three (3) separate zones each 40 meters wide have currently been identified by work in 2018-19. It was last drilled in 2018, as well as mapped in detail, soil sampled, had preliminary metallurgical test work done and a structural model was developed. Before the recent work in 2018, no work had been carried out on Kokkus since 1992-3 when some drilling and metallurgical studies were completed.
“Based on available data, we believe that there is significant potential to expand the Kokkus deposit as the geological model (host rocks, controlling structure, 70% free gold in the oxide zone) are very similar to the giant Russian deposit Sukhoi Log (63 meters oz Au),” concluded Jenkins.
Plans for 2020
Sometime prior to September 2020, Palayan is expected to start an extensive drilling program at Kokkus, which will test the oxide zone extensively with 10,000 meters RC to 60 meters (water table) which are spaced 80 meters apart to give a JORC Inferred resource and further infill diamond drilling around the current resource zone to increase the JORC Indicated resource. The target of this drilling is to increase the oxide resources as well as the length and depth size potential of Kokkus, it is planned to have a JORC Indicated and Inferred resource by the end of 2020, as well as start an initial Pre Feasibility Study (PFS) to determine the most efficient and quickest way to bring Kokkus into production.
The content of this news release was reviewed by Mr. Barry Davis, Palayan’s JORC Component Person, a qualified person with over 35 years’ experience (23 years in Central Asia) in gold exploration & mining as defined by the 2012 JORC code as a member of the AusIMM and AIG. The 2018 report is deemed an internal JORC compliant report as Mr. Davis is an affiliate of Palayan and related person thereby preventing the report from being an independent JORC compliant report.
ABOUT PALAYAN RESOURCES, INC.
Palayan Resources, Inc. is an emerging growth gold mining company that engages in the acquisition, exploration, and development of mineral properties. Management has extensive experience in global exploration and the mining industry. The Company is focused on operating, developing, exploring and acquiring high-quality projects worldwide. Headquartered in Windermere, FL, Palayan Resources is aiming to build a portfolio of low cost, high margin mineral-rich projects.
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This news release contains "forward-looking statements" which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as "anticipate", "seek", intend", "believe", "estimate", "expect", "project", "plan", or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, securing necessary financing, the future of the U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations pertaining to the mining and exploration of mineral properties. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. The Company has no mineral resource or reserve estimate for the Kokkus Project at this time and may not have sufficient funding to thoroughly explore, drill or develop the project. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
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