Hansa Announces Acquisition Of Zhumba Gold Property In Eastern Kazakhstan
Vancouver, Canada - Hansa Resources Ltd. ("Hansa" or the "Company") (TSXv-HRL; Frankfurt-3F2) Mr. John Nugent, President, announces the finalization of agreements for the acquisition of the Zhumba gold project in the Kokpektinsky and Ulansky districts in Eastern Kazakhstan.
The Zhumba property consists of two claims covering 259.76 km sq and is located in the southeast continuation of the West Kalba gold belt hosting a number of producing gold mines including the world class Bakyrchik deposit. The regional center of Ust Kamenogorsk is located 200km from Zhumba along a paved road.
Zhumba is an orogenic gold system characterized by intensive multi-stage mineralization within an area of 2km by 4km with three main styles of mineralization present.
- Historically, gold-quartz-sulphide veins have been identified from 1m up to 6.5m thick with an average around 1.5m and strike lengths up to a few hundred meters.
- Gold has also been identified in disseminated gold-sulfide mineralized zones which are tens of meters wide. Due to an historical focus on the narrow veins style, the broader disseminated style of mineralization has not been systematically tested. Gold is associated with pyrite and arsenopyrite (total content 2-3% sulfides).
- A zone of weathering and oxidation above primary sulfide mineralization has been developed at the property to a depth of 30m-40m and has not been systematically explored.
Zhumba was discovered in 1871 as a placer deposit and since then there has been ongoing small scale placer produciton in the region. In 1984-89 a local company explored and consequently mined the Yuzhnaya zone of Zhumba by open pit to the depth of 70m producing 60,000 t of ore with an average grade of 5-6g/t Au from quartz veins.
In 1985, the Soviet Geological Survey (the "Survey") drilled 4 drill diamond holes and completed 50 trenches which delineated a total of 26 mineralized bodies at cut off of 2g/t Au. The Survey estimated a resource in Russian C1 category, for 5 mineralized bodies of 192,000 oz of gold at an average grade of 4.4g/t Au, which were described as steeply dipping, an average of 1.5m wide and 200m-600m long.
The historical resource estimate quoted above is based on reports by the Soviet Geological Society between 1984-89. The C1 category is broadly similar to the CIM definition "inferred". Data is historical in nature and was compiled prior to the implementation of N1 43-101 report standards. Hansa has not completed sufficient exploration to verify the estimates. Hansa is not treating these resources as National Instrument defined resources or reserves verified by a Qualified Person, and the historical estimates should not be relied upon. Hansa does not have, and is not aware of, any more recent resource estimates that conform to the standards set out in National Instrument 43-101.
Initial work planned by Hansa will include compilation of all historical data, reconnaissance sampling of three styles of mineralization including metallurgical testing, geological and structural mapping, restoration and sampling of exploration adit, sampling of open pit walls and further delineation of mineralization geometry by means of trenching and channel sampling.
DETAILS OF THE AGREEMENT
The Company has concluded an agreement with Altynor Mining Ltd. ("Altynor"), a private BVI company, for the effective acquisition of 81% of the shares of Altyn-Komir Ltd. ("Komir"), the owner of the Zhumba gold property. The Company will, on completion of conditions precedent, issue 10 million common shares of the Company to Altynor. The controlling shareholder of Altynor is Dr. Vladimir Benes with a 42% shareholding.
The Company has also concluded an Agreement with the owner of Komir for effective acquisition of a further 9% interest in Komir for the consideration of $200,000 to be paid in cash.
The Zhumba gold property was acquired by the vendors directly from the government by way of a public bid process. The Company will assume all underlying commitments made by Komir in relation to the property which include expenditure commitments over six years of US$4,700,000 with no minimum annual commitment. There is a $50,000 cash signing bonus to be paid to a local government authority on completion of conditions precedent.
On closing Hansa will own 90% of Zhumba and have 67,413,317 common shares issued and outstanding of which 14.83% will be held by Altynor. The Company is adequately funded and no immediate financing is required in order to complete this acquisition.
The Agreements are subject to the approval of the TSX Venture Exchange. In addition approval by the Ministry of Industry and New Technology of the Republic of Kazakhstan for waiver of pre-emptive right to purchase subsoil rights and permission to transfer subsoil rights is also required.
Mr. Nugent states "The Zhumba gold property lays the foundation for Hansa's exciting new strategy and alliance with Altynor. The alliance brings together the potential for a pipeline of outstanding gold targets in world class gold belts of Central Asia and a highly experienced international management and technical team."
Dr. Benes, President of Altynor notes, "We are excited about pulling together Altynor's technical and management skills on the ground with Hansa's knowledge of capital markets and financing of exploration projects. Hansa is now located in one of the best endowed gold and copper regions of the world, with an excellent infrastructure, mining culture and strong support from the local community. Our first exploration project carries all characteristics and footprint of an exciting orogenic gold prospect and we look forward to applying modern exploration methods to test it for the first time".
On closing of this acquisition, Dr. Benes will be appointed President and Chief Executive Officer of the Company. Dr. Benes has over twenty years experience in mineral exploration and mining including eleven years from 1995 with Barrick Gold Corporation ("Barrick") initially as Regional Exploration Manager and ultimately as Vice President Exploration and Corporate Development for Russia and Central Asia responsible for all exploration activities and instrumental in the discovery of the PGE-Ni deposit Fedorova at the Kola peninsula in Russia and the gold deposit Unkurtash in Kyrgystan.
During 2008 - 2011 Dr. Benes was Vice President Exploration with Northland Resources in Sweden and Finland, responsible for the discovery of the Pellivuoma iron deposit and the preparation of five IOCG deposits for feasibility studies up to mine development.
Currently Dr. Benes is President and CEO of Altynor Mining Ltd. It is anticipated that on closing of the Agreement Altynor's exploration team will be retained by Hansa.
Dr. Benes is the qualified person (as defined by the CIM) in accordance with NI 43-101 responsible for verifying that the information presented in this press release is an accurate summary. Dr. Benes is a fellow member of the Australasian Institute of Mining and Metallurgy (Member #300308).
ABOUT HANSA RESOURCES LTD.
Hansa Resources Limited is a TSX-V and Frankfurt, listed Canadian mineral exploration company engaged in the acquisition, exploration and development of base and precious metal properties. Hansa Resources is committed to building shareholder value through minimizing risk and maximizing potential value of the Company's projects, utilizing Hansa's highly experienced, flexible and successful Board of Directors and Management.
On behalf of the Board,
John Nugent, President
For further information, please visit www.hansaresources.com
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.