Kryso Resources

24th Jan '10 by JPGH

5 comments 4752 reads

Short title body here for now. Just need to dump in a Broker Note update from Fox Davies

Despite the delay in starting production, the target price has increased from £0.25/share to £0.28, primarily due to the higher gold prices but also modestly assisted by a weaker sterling exchange rate.

Background: Small AIM miner focused on Pakrut Gold Mine project in Tajikstan.

Website: http://www.kryso.com/default.cfm

About the Pakrut Gold Project

The Pakrut gold project, of which Kryso has 100% ownership, is situated in Tajikistan approximately 112 km northeast of the capital city Dushanbe.

Pakrut has total JORC Code-compliant gold resources of 2,830,104 oz Au (assuming a cut-off grade of 0.5g/t Au) and is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and western China, and which hosts a number of multi-million ounce gold deposits.

Drilling at Pakrut has previously returned numerous exciting intersections, including 123.7m at 6.14g/t Au, 42m at 11.17g/t Au and 50m at 5.67g/t Au.

A bankable feasibility study for the Pakrut project is currently being undertaken by the Beijing General Research Institute of Mining & Metallurgy. The bankable feasibility study is targeted for completion before the end of 2009 (JPGH - Still not completed, Jan 24 2010)

An internal prefeasibility study completed in 2008 envisaged a mining operation at Pakrut producing in excess of 100,000oz Au per annum with cash costs of approximately US$300/oz Au.

Kryso Background

For those who know little about KYS see link below for a good place to start:

http://boards.fool.co.uk/message.asp?source=isesitlnk0000001&mid=10895877&mrr=0.50

Recent resource update:

http://www.investegate.co.uk/Article.aspx?id=20091117070000P9E5C (Increase of approximately 43% in Pakrut's total JORC Code-compliant resources)

KYS also have a separate Ni project (in Tajikistan) but this is not nearly so far advanced as the gold project.

JPGH

Unlock with Email

Unlock with Google

Already have an account?
Login here

ohisay

25th Jan '10

Currently valued at an unbelievably low 10$ per resource ounce.

http://www.24hgold.com/english/listcompanies.aspx?fundamental=datas&data=company&commodity=AU&commodityname=GOLD&sort=resources&ordre=6&vc=1&iordre=1&visu=pops

BFS should be due before end February at the latest which should rerate the price in the right direction.
One of my 3 month competition picks.

23rd Feb '10

Thanks to Tatser in the other place for this.

http://www.bgrimm.com/EnglishWEB/web/new/60.htm

BFS imminent hopefully - like waiting for Godot here.

3rd Mar '10

New presentation on the website.
Still looks exceptionally cheap in advance of the expected BFS.

http://www.kryso.com/content/ir/ir_presentations/ir_presentations_2010/Kryso%20Resources%20plc%20-%20Presentation%20-%20February%202010.pdf

31st Jul '10

BFS finally finally due in August and, in the last few days ,news of Chinese financing.

http://www.proactiveinvestors.co.uk/companies/news/19385/kryso-resources-lands-major-chinese-investor-for-pakrut-gold-project-19385.html

Kryso Resources (LON:KYS) has secured a £10.99m investment from China Nonferrous Metals International Mining (CNMIM) in a conditional placing of 73.27m shares at 15p each. The proceeds will help fund the development, and further exploration, of the Pakrut gold project and further exploration at the Hukas nickel-copper project, both in Tajikistan.

Crucially, the new investor intends to procure debt financing for no less than 70% of Pakrut’s development costs, within three months of the board approval of the bankable feasibility study (BFS). The debt financing would fund the constructing and commissioning of a mine at Pakrut.

CNMIM have also been issued warrants - one for every ordinary share - as part of the placing, with a 21p exercise price. Furthermore, CNMIM will have the right to appoint two directors to the Kryso board. The company also stated that one of these new directors will assume the role of non-executive chairman.

There was an update to the resource level in June with indications that this could be further increased as drilling progresses.

http://www.minesite.com/nc/minews/singlenews/article/kryso-secures-heavyweight-chinese-backing-for-the-development-of-the-three-million-ounce-pakrut-gold/41.html

No question about the quality of Pakrut. The three million ounces are well and truly locked away, and recent drill interceptions of 25.5 metres at 7.5 grammes per tonne, 42.4 metres at 5.4 grammes per tonne, and 12 metres at 6.4 grammes per tonne from what’s known as Ore Zone 1 give a clear indication of the type of orebody that we’re dealing with. It’s good.

The chinese intervention suggests a floor price of 15p for KYS and with the warrants exercisable at 21p the current price doesnt look overcooked at all especially as Natasa Mining recently took a big stake (20% at the time) and might (though I rather doubt it ) be considering a further bid given the resource/market cap metrics.

I'd certainly expect another rise when the BFS is released before the end of August..

1st Oct '10

At last - after the best part of a year - the BFS is finally to be released on the 12th October.

http://www.proactiveinvestors.co.uk/companies/news/21643/kryso-resources-to-publish-eagerly-awaited-bfs-for-pakrut-gold-project-on-12-october-21643.html

In June, Kryso increased the project’s measured & indicated JORC resource by 26%, with a further 353,300oz, taking the total JORC resource to 3.024Moz of gold.

Kryso has recently secured a £10.99m investment from China Nonferrous Metals International Mining (CNMIM) in a conditional placing of 73.27 million shares at 15 pence each to fund Pakrut.

The new investor intends to procure debt financing for no less than 70% of Pakrut’s development costs within three months of the board approval of the BFS.

Kryso Resources

Unlock the rest of this article with a 14 day trial

About the Author

JPGH

5 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...