Kyrgyzstan Lifts Restrictions on Kola Minings Gold Assetsadmin
Kola Mining Corporation announces that according to publicly available information, on September 5, 2008 the Bishkek Inter District Court of the Kyrgyz Republic lifted all restrictions on its wholly owned subsidiary, Bulakashu Mining Company assets, licenses and accounts. The company concludes from this development there are no further impediments to the company’s normal operations in the country. The Court also dismissed the previously imposed prohibition to the Kyrgyz State Agency on Geology and Mineral Resources to issue any additional mineral rights for Bulakashu property. There remains a lawsuit filed against the Company in respect of BMC by Marsa Aktiengesellschaft, which Management continues to consider to be without merit.
Work on BMC’s, Bulakashu Property in Kyrgyzstan was suspended subsequent to the acquisition of the Company’s Souker Project and the filing of the legal actions against BMC. Exploration work previously completed on Bulaskhu Property returned encouraging results from the Severny Copper-Gold prospect where drilling had intersected 40 metres of 1.89 g/t Au in hole 07-17. Three holes have now intersected a gold zone at Severny characterized by long intervals of gold mineralization over 1 g/t Au including drill hole 07-17, 06-06 (see 01/29/07 news release) and 07-09 (see 09/06/07 news release). Drill holes 07-08, 07-23, 07-24, and 07-25 drilled on the fringes of the gold zone intersecting sporadic intervals of gold mineralization above 1 g/t Au. Drilling to date has only defined the northern limit of the gold mineralization and the strongest part of the geophysical and geochemical anomaly defining the gold zone is yet to be drilled.
Drilling on the porphyry copper gold zone has returned sporadic results for gold and only one interval of copper higher than 0.10% Cu. The geophysical and geochemical anomaly appears to have been caused pyrite mineralization associated with a strong porphyry system. However, only sporadic amounts of gold and silver have been encountered in this pyritic zone. Holes 07, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22 were drilled in the porphyry copper-gold zone.
While at this time the Souker project remains the Company’s focus, the results to date at Bulakashu indicate there are opportunities for additional work and management will continue to identify opportunities to realize value from this project.
Bill Tafuri, P.Geol., the Company’s Vice-President of Exploration, a qualified person as defined by NI 43-101, supervised the preparation of the information in this news release.
To find out more about Kola Mining Corp., please visit the company website at www.kolamining.com.