www.kopygoldfields.com [email protected] Skeppargatan 27, 4floor, 114 52 STOCKHOLM, SWEDEN Kopy Goldfields AB (publ) Press release 9/2017 Stockholm, May 23, 2017 Kopy Goldfields AB: Operational update May 2017 Kopy Goldfields AB (publ) (“Kopy Goldfields” or the “Company”) hereby provides an update of the Company’s operations: • The new 2017 Stage 4 exploration program at the Krasny project is proceeding: 8 drill holes are completed, accounting for 2,262 meters of core drilling. Totally 2,145 fire assay tests for gold have been received. • Gold mineralization at the Krasny Central deposit is now confirmed for 2,000 meters along the strike following the completion of a new hole, drilled on the eastern side of Krasny Central, which extended the Krasny Upper mineralization further for 80 meters. • Results from the recent mineral processing test confirm 85.5% total gold recovery for ore from the Upper structure. • The Pre-feasibility report, which will serve as a basis for decision over construction development on Krasny, is underway and is expected to be finalized within May-June 2017. Preliminary results are positive and in line with expectations. • Micon is proceeding with an update of the JORC resource estimation for the Krasny project. The report is expected in the second quarter of 2017. • Preparation for test mining operations on the Kopylovskoye license is underway with target to start with bulk sample testing in summer 2017. KRASNY CENTRAL AND KRASNY NORTH EXPLORATION RESULTS Exploration activities of Stage 4 exploration program are developing on schedule. A total of 2,262 meters of core holes have been drilled, and 2,145 fire assay tests for gold have been received. During April, the drilling operations within Krasny Central were focused on verification of ore distribution within the central part of the deposit, as well as expansion drilling along the strike, all within the Upper structure. Hole #141845, drilled in Profile 63 on the eastern extension of the Krasny mineralization, intersected the gold mineralization at the depth of 105 meters for 7.5 meters with an average grade of 1.7 g/t. Thus, the Krasny Upper structure is extended for further 80 meters to the east along the strike, compared with the results reported in the previous Operational Update from end of March (see drill plan on Figure 4 and cross section along Profile 63 on Figure 5 in the Attachments). Totally, our drilling has confirmed gold mineralization with the Krasny Central deposit for 2,000 meters along the strike. During April, we tested two new targets around Krasny Central. To the South of Krasny Central, we drilled hole #141713 to the depth of 300 meters, targeting a potential blind mineralization localized within the parallel fold structure which was identified by geophysical survey. Although we intersected sulfide mineralization and confirmed existence of the structure, no commercial gold mineralization was discovered. The similar negative results we received for another potential blind mineralization located immediately to the North of Krasny Central where we drilled the holes #141715 and #141703 (see Figure 3 in the Attachments for the location of the holes). The Investment justification report which was started in October 2016 by TOMS Engineering is close to completion. The report will include drafting of a detailed mining plan and production schedule, justification of the mill capacity, infrastructure layout, detailed CAPEX for mill and pit construction, detailed calculation of OPEX and a NPV-model for gold production. The report will focus on development of the Upper mineralization only and will be used as a basis for taking decision to
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www.kopygoldfields.com [email protected] Skeppargatan 27, 4floor, 114 52 STOCKHOLM, SWEDEN
Kopy Goldfields AB (publ) Press release 9/2017 Stockholm, May 23, 2017
Kopy Goldfields AB: Operational update May 2017 Kopy Goldfields AB (publ) (“Kopy Goldfields” or the “Company”) hereby provides an update of the Company’s operations:
• The new 2017 Stage 4 exploration program at the Krasny project is proceeding: 8 drill holes are completed, accounting for 2,262 meters of core drilling. Totally 2,145 fire assay tests for gold have been received.
• Gold mineralization at the Krasny Central deposit is now confirmed for 2,000 meters along the strike following the completion of a new hole, drilled on the eastern side of Krasny Central, which extended the Krasny Upper mineralization further for 80 meters.
• Results from the recent mineral processing test confirm 85.5% total gold recovery for ore from the Upper structure.
• The Pre-feasibility report, which will serve as a basis for decision over construction development on Krasny, is underway and is expected to be finalized within May-June 2017. Preliminary results are positive and in line with expectations.
• Micon is proceeding with an update of the JORC resource estimation for the Krasny project. The report is expected in the second quarter of 2017.
• Preparation for test mining operations on the Kopylovskoye license is underway with target to start with bulk sample testing in summer 2017.
KRASNY CENTRAL AND KRASNY NORTH EXPLORATION RESULTS Exploration activities of Stage 4 exploration program are developing on schedule. A total of 2,262 meters of core holes have been drilled, and 2,145 fire assay tests for gold have been received. During April, the drilling operations within Krasny Central were focused on verification of ore distribution within the central part of the deposit, as well as expansion drilling along the strike, all within the Upper structure. Hole #141845, drilled in Profile 63 on the eastern extension of the Krasny mineralization, intersected the gold mineralization at the depth of 105 meters for 7.5 meters with an average grade of 1.7 g/t. Thus, the Krasny Upper structure is extended for further 80 meters to the east along the strike, compared with the results reported in the previous Operational Update from end of March (see drill plan on Figure 4 and cross section along Profile 63 on Figure 5 in the Attachments). Totally, our drilling has confirmed gold mineralization with the Krasny Central deposit for 2,000 meters along the strike. During April, we tested two new targets around Krasny Central. To the South of Krasny Central, we drilled hole #141713 to the depth of 300 meters, targeting a potential blind mineralization localized within the parallel fold structure which was identified by geophysical survey. Although we intersected sulfide mineralization and confirmed existence of the structure, no commercial gold mineralization was discovered. The similar negative results we received for another potential blind mineralization located immediately to the North of Krasny Central where we drilled the holes #141715 and #141703 (see Figure 3 in the Attachments for the location of the holes). The Investment justification report which was started in October 2016 by TOMS Engineering is close to completion. The report will include drafting of a detailed mining plan and production schedule, justification of the mill capacity, infrastructure layout, detailed CAPEX for mill and pit construction, detailed calculation of OPEX and a NPV-model for gold production. The report will focus on development of the Upper mineralization only and will be used as a basis for taking decision to
www.kopygoldfields.com [email protected] Skeppargatan 27, 4floor, 114 52 STOCKHOLM, SWEDEN
commence the Krasny mine development. The final report is expected during May-June 2017. In parallel with the Investment justification report, the same TOMS Engineering firm is developing a Scoping study for development of the Lower Mineralization. It will review both open pit and underground mining possibilities and will recommend the most economic and feasible approach. The report is expected during May-June 2017. We are glad to report the following most significant mineralized intervals (at cut-off grade 0.4 g/t) for Stage 4 drilling program on the Krasny: 21 meters with an average grade of 1,41 g/t in the hole #141713, 7.5 m @ 1,70 g/t (hole #141845), 5 m @ 1.66 g/t (hole #141797). See Table 1 in the Attachments for more assay data for the drilled boreholes. Update of the JORC resource statement by Micon International is under way and the result is expected by Q2 2017. The updated JOC resource statement will include all exploration results until early March 2017 from the Upper and Lower structures, as well as the results from Krasny North. Preliminary results from the mineral processing test The mineral processing test of a bulk sample, representing the mineralized ore (oxidized, primary and transition) of the Upper structure is now completed by Irgiredmet engineering company in Irkutsk. The total weight of the processed sample is 3,259 kg with an average gold grade of 1.92 g/t. We have received the test results (summary is shown in Table 2 in the Attachment) but the full draft of the report is expected during May-June 2017. Table 2 in the Attachment summarize the results of five mineral processing tests completed for the ore of Krasny deposit. Ore samples for tests 1 to 4 were taken from the Upper Structure. Ore sample in 2012 was taken from the Lower Structure. Overall, the latest processing test confirmed and improved the previous results and recommendations for the Krasny gold ore treatment processes. The process will involve gravitation and flotation circles with further leaching of gravity and flotation concentrates. All operations will be developed on the Krasny site. The Krasny processing plant will produce gold Dore bars which will be further refined at an external refinery to bankable quality gold bars. The through gold recovery for the ore from the Upper structure is expected at 85,5%. General processing diagram including a description is presented on Figure 6 in the Attachment and a detailed diagram for the processing flow chart will be released later upon completion of the report which is expected in May-June 2017. KOPYLOVSKOYE PROJECT In relation to Kopylovskoye project, the 2017 plans are either to sell the project for cash if the market allows, or to develop pilot mining with a partner. With very strong fundamentals for gold mining in Russia, we see opportunities for both options. We are proceeding with environmental and safety permitting to commence test mining operations. We plan to start with bulk sample testing already in summer 2017. NEXT STEPS We forecast the following events during the next few months:
• Q2 2017 – Release update of Krasny JORC report
• Q2 2017 – Release results of the Investment Justification Study
• Q2 2017 – Make decision over start of mine development for the Krasny project
• Q2 2017 – Scoping study lower mineralization Operation updates will be released on a regular basis.
www.kopygoldfields.com [email protected] Skeppargatan 27, 4floor, 114 52 STOCKHOLM, SWEDEN
For more information, please contact: Mikhail Damrin, CEO, +7 916 808 12 17, [email protected] Tim Carlsson, CFO, + 46 702 31 87 01, [email protected]
This information is information that Kopy Goldfields is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.45 am CEST on May 23, 2017.
About Kopy Goldfields AB Kopy Goldfields AB (publ), listed at NASDAQ First North in Stockholm is a gold exploration and production company operating in one of the most gold rich areas in the world; Lena Goldfields, Bodaibo, Russia. The company holds 12 bedrock exploration- and production licenses and one alluvial license covering in total 2,049 sq km, of which the Krasny licenses (2 bedrock and 1 alluvial) are held 49% by the company. The target for Kopy Goldfields is to become a near-term gold producer in cooperation with a producing partner under JV agreement. Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Aqurat Fondkommission acts as Certified Adviser, contact number: +46-8-684 05 800.
The Share Ticker: KOPY http://www.nasdaqomxnordic.com/shares/microsite?Instrument=SSE77457 Outstanding shares: 79,866,054
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Attachments
Figure 1. Map of Kopy Goldfields gold properties and location of operating mines near the Krasny deposit
Krasny
Sukhoy Log
GV Gold projects
Poluys Gold projects
Northern Territories
Kopylovskoye
www.kopygoldfields.com [email protected] Skeppargatan 27, 4floor, 114 52 STOCKHOLM, SWEDEN
Figure 2. Map of Krasny license area
The boundaries of alluvial licenses owned by third companies are marked in yellow.
Krasny North
Target
Krasny Central
Target
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Figure 3. Map of Stage 4 exploration program for the Krasny deposit, 2017. Locations of new drill holes are marked with black dots and trenches are marked with green dots
Krasny North
Krasny Central
141845 141713
141715
141703
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Figure 4. Plan view of the exploration activities on the Krasny deposit, Central part as for May 5, 2017
Profile 63
Hole # 141845
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Figure 5. Geological cross section along Profile 63 on the eastern flank of the Krasny Central deposit, with location of former and new drill holes, boundaries of the projected open pit and outline of gold mineralization
Profile 63
New significant drill intersections
Hole #141845
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Figure 6. Principal operations of the Krasny gold ore processing flow diagram
The Krasny ore processing flow diagram includes the following principal operations:
• RoM crushing till the fraction size of -250+0 mm;
• grinding in two stages till the fraction size of -0.071 mm (85%) with self-grinding in the first stage and ball milling at the second grinding stage with classification in hydro cyclones;
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• gravity concentration of the first- and second-stage grinding mill discharge in jigging machines, with cleaning flotation of the concentrate produced on shaking tables, with the gravity concentrate and gravity middling production;
• additional grinding of the middling of shaking tables in the second ball mill till the fraction size of -0.071 mm (85%) with gravity processing of the mill overflow on shaking tables;
• intensive cyanidation of the gravity concentrate with electrolytic gold recovery from solutions and cathode deposit production;
• flotation processing of the ground material with two rougher, one scavenger, two cleaning operations and one middling flotation. The flotation tails are delivered to the tailings impoundment;
• flotation concentrate and gravity middling thickening with transportation of the thickened product to the preliminary lime treatment and transportation of the thickener overflow to the return line;
• sorption leaching of the thickened pulp after lime treatment;
• decontamination of sorption leaching tails with further filtration;
• gold stripping from saturated carbon and gold-stripped carbon regeneration;
• electrolytic gold recovery from solutions with cathode deposit production;
• smelting of cathode deposit.
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Table 1
Mineralized intervals with gold grades above cut off 0.4 g/t intersected during Stage 4 exploration program 2017 (the intervals which are referred to in the text of the press release are marked with light red color)
# Hole From (m) To (m) Length (m) Au (average grade), g/t
141713 6,00 9,00 3,00 0,70
141713 27,50 45,00 17,50 1,02
141713 55,00 76,00 21,00 1,41
141713 79,00 95,00 16,00 1,28
141713 99,00 112,00 13,00 0,82
141713 119,00 121,20 2,20 1,30
141713 153,00 156,00 3,00 0,88
141845 105,50 113,00 7,50 1,70
141797 40,00 41,00 1,00 2,33
141797 47,00 53,00 6,00 1,44
141797 69,00 75,00 6,00 0,55
141797 79,00 83,00 4,00 0,56
141797 112,00 117,00 5,00 1,66
141797 124,00 134,00 10,00 1,25
Table 2 Summary results of all mineral processing tests for the Krasny deposit. Ore samples for tests 1 to 4 were taken from the Upper Structure. Ore sample in 2012 was taken from the Lower Structure.
