Gold explorer Palayan Resources is forging ahead with its Kokkus project in Kazakhstan, off the back of drilling data confirmed by MICROMINE’s geological data management solution Geobank, and modelling solution Micromine.
Geobank’s advanced data analysis tools have been used to verify data from historical documents and drill holes, giving Palayan the confidence to proceed with the next stage of exploration at Kokkus.
Palayan Resources is an emerging growth company involved in global exploration, acquisition and development of mineral properties. Kokkus is the company’s first major project. Located in a rural area close to Atasu, 400 kilometres west of the mining centre of Karaganda, the Kokkus gold deposit is secured under Kazakhstan law by a subsoil resource contract covering approximately 16 square kilometres.
In 2018, Palayan undertook drilling and sampling at the Kokkus site to determine the size of the resource returning a mineral resource estimate of at least 199,000 ounces gold.
“A major factor in our decision to move on the Kokkus project was the available drill results from 2018, which we felt provided a solid foundation for what we believe can be a first-class gold property,” Palayan chief executive James Jenkins said.
The contouring of ore mineralisation was carried out on the basis of sampling data using Micromine software. The cut-off grades used were of 0.3 grams per tonne and 0.4 grams per tonne gold, the thickness of the internal waste included into the ore mineralisation contour was three meters, in exceptional cases four meters, where a complex geological structure was observed, minimum width of ore was two meters.
To comply with JORC standards, exploration companies must be able to demonstrate the reliability of their sampling results. The Geobank software delivers this reliability by facilitating the accurate recording, validating, analysing and reporting on data.
Using historic drilling, testing and sampling information, Palayan says Kokkus has exploration potential in all directions – depth, width, east and west – with only 5 per cent of one zone drilled so far.
“Based on available data, we believe that there is significant potential to expand the Kokkus deposit as the geological model (host rocks, controlling structure, 70 per cent free gold in the oxide zone) are very similar to the giant Russian deposit Sukhoi Log (63 million ounces gold),” Jenkins said.
MICROMINE’s Geobank and Micromine products have greatly assisted Palayan in confirming the project’s viability and potential which has given them the confidence needed to move forward.
The company intends to commence an extensive drilling program at Kokkus to increase the oxide resources as well as the length and depth size potential of the project. By year’s end, a JORC indicated and inferred resource should be available and the company plans to start an initial pre-feasibility study to determine the most efficient and quickest way to bring Kokkus into production.