VANCOUVER, BC -- May 24, 2017 -- InvestorsHub NewsWire -- When
Kenadyr Mining (TSXV:KEN)(OTCQB:KNDYF) listed at the
end of March 2017, it gave investors a double opportunity. First,
to own a quality venture that has the potential to confirm massive
historical resources noted by previous drilling. Second, the Kyrgyz
Republic is home to some of the world's largest gold mines,
including the tongue twisting Taldy-Bulak Levoberejny ("TBL") mine,
owned by China's largest mining company, Zijin.
The story gets very interesting quite quickly. Here's the
graphic for context. And the best part is that Kenadyr has begun
drilling, ahead of schedule on those areas potentially connected to
the massive TBL mine. (Uncovered red as opposed to red under
grey)
Zijin's TBL orebody connects to Kenadyr's high grade "South
Zone" its highest priority target. The soviet estimate within a
portion of the south zone (based on 24 drill holes in the area
directly adjacent to the TBL orebody) shows an initial unclassified
historic estimate of 900,000 oz. Au at a grade of 8.3 G Au/T. This
historic estimate is open in all directions and to depth.
Two key facts:
- TBL: Newly built and producing with a cap cost of $296
million, it contains 3.2 M oz. Au in reserves and resources at a
grade of 7.2g Au/T. The mine is designed to produce 125,000 oz.
Au/annum.
- KEN: The Soviet estimate within a portion of the South Zone
(based on 24 drill holes in the area directly adjacent to the TBL
orebody) shows an initial unclassified historic estimate of 900,000
oz. Au at a grade of 8.3 G Au/T. This historic resource is open in
all directions and to depth.
Kenadyr President Bryan Slusarchuk states: "Drilling this type
of high grade gold target anywhere on the planet should be
compelling to investors. Drilling it right next door to a
super-major's operating mine makes it more compelling yet." He
continues; "Poor core recovery during Soviet drilling (averaging
60%) and the use of predominately ICP analysis (versus fire assay)
may have understated the resources and grades at the south and
other zones – comparison of previous soviet drilling results at the
TBL to recent drilling results show a significant increase in
average gold grades. "
The Company makes no conclusions as to deposit or reserves,
actual or inferred. The goal is to prove or exceed the metrics of
previous Soviet drilling, which consisted of the gold zones
identified by Soviet drilling (81,800m in 139 holes) that are
adjacent to Zijin's TBL deposit (using a 1g au/T cut off). The
historic Global Estimate is 6m oz. Au grading 2.3– 4.7g au/T.
There are more legs to the Kenadyr story. CEO Dr. Alexander
Becker's mining provenance in Asia is impressive. Experienced in
the Kyrgyz Republic over more than two decades, he has many
successes including the acquisition of acquiring the gold potential
of the Chaarat deposit in the Kyrgyz Republic (gold resource of 6.5
million ounces). He is primarily in-country and runs the operation
on the ground. His local, industry and government contacts are
peerless.
Dr. Becker, Kenadyr's CEO states "The commencement of drilling
represents the start of an exceptional period for Kenadyr and our
shareholders. The current drilling is to test and confirm
previously reported high grade historical results. This drilling is
in the South Zone, not the only area of gold mineralization on the
property, but an extremely important zone as it is a large and high
grade target and of course is immediately adjacent to Zijin's TBL
Mine."
The other bit of investor intrigue is the potential that
Zijin could either partner or acquire Kenadyr or claims/land under
its control. Zijin purchased the TBL Mine in 2011 and in
2015:
- 50% of Barrick's Porgera Mine for USD
$298M
- 12,836,826 shares of Pretium at CAD $6.30/share for a purchase
price of CAD $81M
- Zijin purchases 49.5% stake in Ivanhoe's Kamoa copper project
for USD $412M
Drills Turning Now
A full month ahead of schedule, Kenadyr with contractor Quest
Exploration Drilling (QED) has begun drilling on the South Zone to
an anticipated depth of 850 meters.
In addition to initial drilling in the high priority South Zone
it will proceed with bull dozer trenching and sampling cuts on the
SS Zone and SS Trend. As well as drilling, the Company intends to
take approximately 1,250 channel samples and 2,200 soil
geochemistry samples in this area.
Given that KEN has no debt and $7 million in cash, the Company
is in a strong financial position to take advantage of drilling
opportunities and offsets should that be necessary. Drilling
updates are planned over the summer with assay results available in
late Q3, early Q4, 2017.
Conclusion
While still speculative, Kenadyr is intriguing in that it could
well end up greater than the sum of its already interesting
parts.
Aa a KEN investor/shareholder the potentialities are intriguing,
albeit yet to be crystalized. First, KEN is in an area that until
now investment exposure was not available. The actions of Zijin in
the area could well have ramifications for KEN, particularly as the
Company proves up reserve numbers.
The main benefit is for Kenadyr to prove up or exceed the
previous numbers associated with significant Soviet and Malaysian
drilling in the area.
Having historic drill and geological records, couple with
current technology certainly ups the potential to proving up a
significant resource.
Equally important is the presence of those drilling records to
direct and significantly reduce/mitigate the exploration risk.
Couple that with peerless in-country expertise and a look for spec
to spec/conservative investors seems worth some time.
While you might be reluctant to look Kenadyr over when words
like 'Asia' 'Chinese Mining' or the seeming isolation of the
property, these are not material factors.
Infrastructure includes good power, paved roads 100 km to town,
mining friendly jurisdiction and an experienced and willing
workforce.
All in all, most if not all the junior mining investment boxes
are checked; including the important three M's, Money, Moxey,
Management.
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