Noricum Gold (LON:NMG) released an update on its Bolnisi gold-copper project where it continues to find very interesting drill intervals with for instance 23 meters at 2.82% copper and 33 meters of 1.04% copper but starting at surface. Some of the intervals also contain a lower average copper grade but do have some gold credits like the 28 meters at 0.53% copper and 0.56 g/t gold.
These recent drill results allowed the company to update its exploration target at Bolnisi where it’s now expecting to find 50-70 million tonnes of ore at an average grade of 0.3-1% copper and 0.1-1 g/t gold. The targeted grade still has quite a large spread, and the copper content could come in anywhere from 300 million pounds to 1.5 billion pounds of copper with a few hundred thousand ounces of gold as icing on the cake. On top of that, the Bolnisi project also has an oxide zone where the average gold grades that have been encountered so far are 0.5-5 g/t, and Noricum thinks its new processing agreement with RMG will allow it to produce the gold at a cash cost of less than $600/oz, using a pro forma head grade of 1 g/t.
Noricum owns 50% of the Bolnisi project which is located less than 10 kilometers from the Madnueli mine which has processed almost 100 million tonnes at an average grade of 1% copper and 1 g/t gold.