Georgian Mining has reached an agreement with its partner Caucasian Mining Group (CMG) in connection with the development of the Kvemo Bolnisi gold-copper project in Georgia.
Both partners have agreed to equally share the funding responsibilities for the joint venture company Georgian Copper and Gold (GCG) as part of the initiative.
Georgian Mining originally earned its 50% stake in GCG after the company spent $6m towards its operating costs as required under a deal that was signed in 2015.
The partners have adopted a 2018 work programme following the completion of the initial two-year project, which is slated to focus the development of a mining operation at KBE Gold Zone 2 (GZ2).
Georgian and CMG are expected to undertake an in-fill drilling programme for resource definition in order to further develop KB East target (KBE) GZ2 gold oxides.
Simultaneously, the partners will also take up additional test work, as well as environmental and feasibility studies to support the building of a starter mining operation at GZ2.
Georgian Mining managing director Greg Kuenzel said: “The development of the gold oxides, and expansion of the copper-gold sulphides at KBE is a core focus for ourselves and our partner.
“Initial production from the gold oxides will serve as a starter operation and pave the way for the subsequent exploitation of the primary copper-gold sulphide ores at KBE.
“We also firmly believe that KB and the licence area as a whole have excellent potential for a major discovery of large-scale epithermal gold-copper mineralisation, and this is the focus of our wider exploration programme.”
In addition, the work programme will involve further testing and expansion of the JORC compliant copper-gold resources beneath the oxides at GZ2 and Copper Zone 1 (CZ1).
The partners will also undertake further regional exploration at the 860km² licence, which is located on the Tethyan Belt in Georgia.
In a separate transaction, GCG has signed a memorandum of understanding (MoU) with CMG affiliate RMG Gold (RMG) in connection with the mining and processing of ore from the Kvemo Bolnisi East target (KBE).
The agreement is conditional upon completion of the work programme and a positive feasibility study.