More gold and copper at Varvarinskoye

European Minerals (EPM.U-T) has recently completed infill drilling on the periphery of proposed open pits at its Varvarinskoye project, 130 km southwest of Kustanai, northern Kazakhstan.

Highlights of the drilling include one 7.4-metre intersection that graded 7.68 grams gold and 0.38% copper at a down-hole depth of 19.6 metres. Another hole intersected 11.4 metres that graded 4.25 grams gold per tonne and 0.1% copper at 18.6 metres down-hole.

Six other holes intersected zones of mineralization from 3-23 metres in width that graded from 0.53-2.42 grams gold and 0.02-0.17% copper. One of these holes intersected, in addition to a lower grade intercept, one metre that graded 11.1 grams gold per tonne.

The Varvarinskoye deposits are on the eastern side of the northeast-striking Varvarinsky fault zone. Gold is associated with sulphide, primarily chalcopyrite, pyrite and pyrrhotite, in garnet-pyroxene skarn, or stockwork veins in volcanic rocks. In addition there is significant supergene oxide mineralization.

A total of 5,300 metres has been drilled since April. About 2,500 metres were drilled in condemnation holes. This confirmed the absence of mineralization in areas that are proposed for mine facilities, waste dumps and tailings.

Last year the Varvarinskoye reserves were estimated at 54 million tonnes grading 1.35 grams gold and 0.28% copper. In addition there is a measured and indicated resource of 39 million tonnes grading 0.97 gram gold per tonne and 0.17% copper. This scenario calls for six pits to be mined with a stripping ratio of 3.7 to 1. The proven and probable reserves total 2.2 million oz. gold and 255 million pounds of copper.

A bankable feasibility study is expected in September. Following this, mining consultants, Metallurgical Design Management of Johannesburg, have agreed to enter into a fixed-price turn-key lump sum contract for the construction and development of the project.

JSC Varvarinskoye holds the right to develop the deposits on the 3-sq.-km mining licence. It is 86%-owned by European Minerals and 14%-owned by JSC Acier. The company also holds a 220-sq.-km exploration licence surrounding this.