PRESS RELEASE. RG Gold, Kazakhstan-based gold producer, completes exploration drilling program and defines next steps to develop the project

September 23rd, 2016, Akmola oblast, Schuchinsk. RG Gold LLP, Kazakhstan-based gold producer (hereinafter - the “Company”), is pleased to announce drilling completion of the last exploration borehole as part of the Company’s reserves appraisal program. The program for 2014-2016 included 476 boreholes with total depth of 116,000 meters. Obtained geological information will enable the Company to estimate gold reserves for South and North Raygorodok deposits under local and international standards, State Reserves Committee (GKZ) and JORC, respectively. Results of the reserves estimation are expected in 1Q 2017, the gold reserves approval process with GKZ will be launched afterwards.
Preliminary drilling results show that deposits remain not delineated both on flanks and at depth. Deep drilling showed increase in average gold grade with increasing depth, which shows high potential of the deposit. RG Gold’s shareholders decided to continue exploration drilling until May 2017 in order to better understand the geology of South and North Raygorodok deposits and potentially increase gold reserves.
Company’s management will decide on capacity of the gold processing plant and project development format upon completion of the JORC reserves report. Current plan implies construction of a 2 million tonnes per annum gold processing plant. As per preliminary reserves estimation, volume of ore suitable for processing at the plant is expected to increase several times, which allows considering building the plant with processing capacity of up to 4 million tonnes of ore per annum.
Serik Syzdykov, CEO, RG Gold LLP” “We expect our geological exploration program to help us increasing the gold reserves by several times. Reserves estimation and approval procedures with state authorities take certain time; therefore results of additional drilling will not be included into the reserves report, but will help to delineate our deposits and understand their geology better. JORC reserves report will help us understand the volume of economic reserves and develop deposits in the most effective way.”
Davron Rustamkulov, Chief Investment Officer, Verny Capital: “We are impressed with results of the exploration program and see significant potential for further exploration both on flanks and at depth. Should we confirm the reserves, we will be happy to announce the discovery of a large new gold deposit with free-milling ores. RG Gold team and their consultants are actively working on assessment of the deposits and efficient ways of its development.”
Additional information:
RG Gold LLP (former name Raygorodok LLP) – mining company working in Burabay region of Akmola oblast on the Novodneprovskiy contract territory which includes Novodneprovskoye, North and South Raygorodok deposits. Total area of contract territory amounts to 67.7 km2. Approved gold reserves of the deposits amounts to 36 tonnes, including 11 tonnes in oxide ores. As of today, the Company extracts oxide ore at North Raygorodok and South Raygorodok open cast mines and processes it using the heap leaching technology. RG Gold LLP is solely owned by Verny Capital.
Verny Capital is one of the largest groups in Kazakhstan specializing in making direct equity investments in private companies. By acquiring a controlling or significant minority stake in private companies in Kazakhstan and in other CIS countries, Verny Capital is actively involved in their strategic and operational management. The Group was founded in 2006. Verny Capital has more than US$4 billion in total assets under management. Portfolio companies of the Group are involved in the natural resource, telecommunications and media, consumer goods and services, transport and logistics, building materials, real estate and hotel business sectors. For many years, Verny Capital has successfully cooperated with international strategic investors by facilitating their access to the capital and markets of Kazakhstan and the CIS and by contributing experience and expertise to the success of its partnerships.