Kentor Gold Takes Control of Jinka Minerals Limited
• Targeting early gold production at Burnakura & Gabanintha, W.A.
• Drilling to establish copper-lead-zinc-silver Resource at Jervois, N.T
Kentor Gold Limited (“the Company” or “Kentor Gold”) is pleased to advise that as of close of business on 11 May 2011, Kentor Gold held a relevant interest of 93.78% in the ordinary shares of Jinka Minerals Limited (Jinka)
The current directors of Kentor Gold have been appointed as directors of Jinka. The current Jinka directors will resign with the exception of Dr Ruane who will remain on the board until the end of the take-over process.
Jinka’s advanced gold and copper projects provide Kentor Gold with strong growth avenues in Australia including early gold production opportunities.
Burnakura and Gabanintha are advanced gold and copper projects south of Meekathara, with the potential for early gold production.
Both are former gold mines. Burnakura produced 216,250 oz gold from open cut operations at a head grade of 3.8 g/t and 50,637 oz gold from underground at an average of 5.95 g/t. Gabanintha produced over 180,000 oz gold from an open pit at 3.23 g/t.
Both projects have good road access and other infrastructure. A processing plant at Burnakura currently under Care and Maintenance can be re-commissioned at minimal cost and expanded to process ore from both projects which are only 20km apart. Also at Burnakura are a 90-person camp, offices and workshop.
At Burnakura additional mineralisation will be targeted near existing pits. At Gabanintha, recent exploration has intersected high grade gold and copper.
At Jervois, extensive exploration has established is a large, complex multi-metal prospect extending over a 12km strike length.
Kentor Gold’s near term plan for the Jinka assets is to:
• Review all historical drilling data from the Burnakura, Gabanintha and Jervois projects with the aim of estimating JORC Resources for each of the three deposits. This work should be completed progressively over the next three months
• Commence a diamond and RC drilling program at the Jervois project to infill and expand known mineralisation to produce a JORC Resource. The diamond drill core will be used to commence metallurgical test work for both the copper mineralisation and the adjacent silver lead zinc mineralisation
• Commence a drilling program at Burnakura to test geophysical targets to the north of the historical mining areas
• Commence a geophysical survey at Gabanintha to define further base metal targets for future exploration drilling.
• Commence a feasibility study at Burnakura to investigate expanding and recommissioning the CIL plant to treat oxide gold resources amenable to open pit mining.
Kentor Gold Managing Director Simon Milroy said the Andash Gold Copper project is still clearly the main focus for Kentor, however the Jinka purchase was in line with the key Kentor Gold strategy of acquiring advanced projects.
“With the Jinka assets, we have the benefits of potential early development and production, the potential to expand to larger scale operations that Jervois and the other projects present, and geographic diversification from central Asia,” he said.
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