CAG cuts gold at Novodneprovskoe

Central Asia Goldfields (CGZ-M) has released drill results from three holes collared at its Novodneprovskoe gold property in Kazakstan.

Hole 1 intersected 14.8 metres (from 132.6 to 147.4 metres) grading 5.6 grams gold per tonne (or 6.8 grams gold uncut), including 7.7 metres (from 132.6 to 140.3 metres) of 10 grams (or 12.3 grams uncut) and 3 metres (from 134 to 137 metres) of 22.7 grams (28.7 grams uncut).

Hole 2 intersected 7.8 metres of core (from 150.8 to 158.6 metres) grading 1.3 grams, both cut and uncut.

Hole 3 intersected 7 metres (from 183.5 to 190.5 metres) of 10.8 grams (4,042.8 grams uncut), including 2.3 metres (from 185.2 to 187.5 metres) of 31.1 grams (12,302.6 grams uncut).

The Novodneprovskoe property is 15 km north of CAG’s Raigorodok North gold deposit.

Soviet-era exploration efforts outlined five mineralized zones in an area measuring 2 by 1.5 km. CAG’s drilling was restricted to zone 2, over a strike length of 150 metres.

The gold mineralization occurs in intense zones of silicification, with quartz veining which appears to be restricted to highly altered, sheared sedimentary blocks enclosed in intrusive rocks.

CAG holds 60% of Raigorodok and Novodneprovskoe as part of the Goldland joint venture; local company Crystal holds the remainder.

CAG is still stinging from the Kazakstani government’s termination of its Gold Pool joint-venture, which was managing three gold mines in northern Kazakstan (T.N.M., Aug. 25/97).

The Gold Pool joint venture was a formed between CAG, which held a 25% interest, and Kazakstan Goldfields (KGFC-C), which held the remainder.

The Gold Pool joint venture, in turn, owned a 50% interest in the Kazakstani company Gold Pool LLP (which still holds the management contract), with the Kazakstani firm PSB holding the other half.