Celtic searches for moly in Kazakhstan

Celtic Resources has been awarded licences for three molybdenum prospects in Central and Northern Kazakhstan. They are principally molybdenum deposits, with ancillary copper and gold at one deposit. Significant exploration work has already been completed including geochemical, trenching, geophysical surveying, core drilling and initial resource estimates. Each project has good access to infrastructure including power, water and rail. Initial exploration expenditure of $3million is planned to define resources.

The Akkuduk deposit is located in the Shetski region of Karaganda, central Kazakhstan and occurs as stockworks and mineralized granite porphyry intrusives in volcanic stratigraphy. Selected drill results gave 69.4 m at 0.12% Mo, 26 m at 0.10% Mo and 33.4 m at 0.12% Mo. A P1 resource potential is presently estimated at 12,000 t of Mo.

The Zhilandy deposit is near Kurchatov in the Pavlodar region, in northern Kazakhstan and occurs as Mo and Cu mineralization associated with a porphyry intrusive system within volcanic host rocks. The intrusives also carry gold, silver, lead and uranium. Significant molybdenum intersections include 8 m at 0.11% Mo, 0.5 m at 1.0% Mo and 2.5 m at 0.8% Mo. Gold mineralization intersections included 15 m at 2.23 g/t Au and 27 m at 0.2-9.7 g/t Au.

Itmuryn deposit is located 155 km from Stepnogorsk in northern Kazakhstan, where Celtic Resources’ Shorskoye molybdenum ore is treated. The mineralization is hydrothermal stockwork in volcanics that has been extensively altered and covered with 18-24 m of sediments. Limited shallow core drilling was completed but a single drill hole of 167 m intersected molybdenum mineralization over almost its entire length. Selected intersections were 4.3 m at 0.106% Mo, 3.6 m at 0.199% Mo and 2.7 m at 0.136% Mo.

Commenting on the licences, Kevin Foo, Managing Director said, “Our success at the Shorskoye molybdenum project and the buoyant prices of molybdenum has provided the incentive to seek other opportunities that utilise our experience in the FSU. These acquisitions are reasonably well advanced exploration properties that may be fast tracked to production if the planned resource definition programme meets our expectations.”

All three licences are valid for three years of exploration. There are minimum expenditure obligations which vary between the licenses, as detailed below, and total up to $3 milllion in total over the three-year period. At any time during this period an economic discovery may be declared and a mining and exploitation license obtained.

Molybdenum mineralization, with ancillary copper and gold was discovered at the projects in porphyry systems during exploration by Kazakh geologists in the 1970s and early 1990s. The style of mineralisation is similar to that at the Celtic Resources Shorskoye molybdenum mine which was successfully developed in 2005.

Celtic has planned an extensive exploration programme aimed at target and resource definition. Field programmes will commence in 2008 after completion of all licensing and permitting requirements The preliminary estimate of exploration expenditure required is $3 million comprising core drilling, RC drilling, trenching and geophysical surveys.