Company Information for Ovoca Gold Plc

Company stock charts - 12 Month chart

IEX; OVX View full financial data

AIM; OVG View full financial data

Company Statement

Ovoca Gold is an international precious metals exploration company quoted on the Frankfurt Stock Exchange (OVX), the London AIM Stock Exchange (OVG) and the Irish Stock Exchange (OVX)
 
The company has a portfolio of advanced stage development assets and exploration properties in Russia.  Through its various properties the company has interests in silver, gold, zinc, molybdenum and copper.
 
Ovoca Gold with its varied portfolio and flagship Goltsovoye licence area is on the verge of becoming a major regional producer of precious metals.
 
The company's ethos is simple: the right sites; the right strategy; and the right people.
 

Current Operations

Goltsovoye Licence Area
Ovoca has a 100% interest in CJSC Ayax Prospectors Artel Company ('Ayax'), a Russian company which owns the Goltsovoye silver deposit in the Magadan oblast in Eastern Russia.
 
The Goltovoye project is located in the Omsukchan district of Magadan Administrative Region, Russian Federation. The project is located approximately 575 km by road northeast of Magadan, the regional capital, and 68 km by road south of the town of Omsukchan, the district's administrative centre. Thanks to its long mining legacy, the region's infrastructure is general well established and there are a number of major hard rock and precious metal mining operations in the area.

Ovoca and GBM have completed a study of resources, mining methods, mineable reserves, processing and infrastructure as well as capital and operating costs estimates for a 260,000 tonnes a year underground mine, with a 10 year mine life.
 
The mineral potential at Goltsovoye is significant and there is a high probability that a moderately sized, high grade ore reserve base will be realised. The current mineral resource estimate of 81.33 Moz of silver appears to be reasonable and has been approved by GKZ.
 
The Goltsovoye project has been subject to extensive exploration including surface trenching, diamond drilling and underground exploration development. The mineral reserve estimate is comprised of C1 and C2 category based on the Russian system of resource definition. On a tonnage basis the project mineral inventory comprises 43% in the C1 category and 57% in the C2 category and 48% of the contained silver is in the C2 category. Considering that some of the mineralisation has been explored extensively underground it is likely that some of the mineral reserves could be re-classified to a higher category.
 
Wardell Armstrong completed Phase I of the Bankable Feasibility Study in early 2007, which included the upgraded resource statement.  Scott Wilson Mining is currently completing Phase II of the Bankable Feasibility Study scheduled for delivery by the end of 2007 and the deposit is scheduled to start production in 2009, making Magadan Ovoca's flagship project.


Introduction to the Holdings in the Kola Peninsula
The Kola Peninsular is located in the North-West of Russia near the Finnish border. Ovoca gold holds four exploration licences in the Kola, occupying the best prospective areas along the Kolmozer-Voronya Greenstone Belt. The geology of Finland, Karelia & Kola include extensive Archean greenstone belts, similar to those hosting major gold deposits and platinum palladium deposits throughout the world in places such as Canada, West Australia, Southern & Western Africa and South America, which accounts for over 50% of the world's gold production.
 
Oleninskoye Licence Area
Oleninskoye is Ovoca's most advanced prospect in Kola, north Western Russia. Drilling programmes have indicated that gold mineralisation occurs in quartz lenses of thickness ranging from 2 to 5 metres with an average strike length ore bodies of 85 metres and an overall strike length of the deposit of 5 kilometres for all six mineralised zones so far defined. Drill intersections indicated that the gold mineralisation extends to depths in excess of 100 metres and is open both along strike and in depth. A recent resource estimate calculated by Norplat based on drilling on vein 3 and 7 has outlined 1,020,000 tonnes at an average grade of 13.9 grammes per tonne and gold equivalent to 455,000 ounces of gold. In addition to this gold mineralisation, recent drilling had intersected spatially related platinum mineralisation within the metabasalt and metadiabase host rocks of the gold bearing quartz veins and stockworks with platinum grades of up to 3.2 grammes per tonne over thickness of over 10 metres. It is believed that these host rocks are extensive throughout the licence and assays from reject samples from previous gold exploration, before Norplat's ownership of the licence, indicate the presence of platinum in other gold prospects where assays for platinum were not previously run.

In addition to this gold mineralisation, recent drilling has intersected spatially related platinum mineralisation within the metabasalt and metadiabase host rocks of the gold bearing quartz veins and stockworks with platinum grades of up to 3.2 grammes per tonne with thicknesses of over 10 metres.

Nyalm I and II Licence Area
The mineralised stockwork at Nyalm I has a currently delineated surface area of 50 metres by 160 metres, with an overall average grade of 1.2 grammes per tonne gold with areas within the stockwork zones where the overall thickness exceeds 6 metres and average grades exceed 4 grammes per tonne gold. The quartz veins dip steeply to the north-east at 70º to 75º, having an average true thickness of 1.5 metres to 2.0 metres and with grades up to 16 grammes per tonne gold. The current defined strike extent is 160 metres, but this is open in both directions. The down dip extent has been demonstrated to be at least 210 metres.

Following the discovery of platinum mineralisation at the Oleninskoye prospect the occurrence of similar potential host rocks, the analysis of core from future drilling will include assays for platinum and palladium.

Leshya Licence Area
The 2004 Ovoca geochemical survey outlined a strong gold anomaly 4 kilometres to the northeast of Oleninskoye in the north of the licence area, north of the Lagernoye Lake and close to several copper and molybdenum geochemical soil anomalies. Four drill holes have since been completed on the anomaly, now known as the South Leshaya Deposit. The results from three of these holes suggest that this vein system could be as significant as Oleninskoye.

The Leshaya area has been subjected to geochemical sampling and several anomalies had been highlighted in the search for nickel in the 1950s. The results of this early work delineated an area of anomalous 0.3% nickel and the Norplat sampling programme in 2004 confirmed the anomalous nickel grades and also returned anomalous gold and slightly anomalous platinum values.
 
Pellapahk Licence Area
The Pellapahk molybdenum-copper deposit is located 3 kilometres northwest of Oleninskoye and is characterised by anomalous copper and molybdenum concentrations associated with minor amounts of gold, silver, rhenium, selenium and tellurium in a granite porphyry.

In 2004 Norplat drilled three holes on the Pellapahk deposit. Assay results from these holes confirmed the Russian grades. The gold-quartz vein mineralisation at Pellapahk is similar to that seen at Oleninskoye and is considered to be an extension of the shear zone hosted quartz veins and silicified amphibolite zones bordered by greenschists. As with Oleninskoye, the mineralisation is associated with several sulphidation zones characterised by the presence of pyrrhotite and arsenopyrite and suggests a north western extension to the Oleninskoye gold deposit.

Meshen Licence Area
Meshen is located on the northeastern flank of the Kolmozero-Voronya greenstone belt and is an extenson of the two sub-parallel Nyalm structures. The geology at Meshen comprises of meta-sedimentary and meta-volcanic rocks intruded by younger gabbro-amphibolites, metagabbroic diabase, meta-pyroxenite and small stock-like intrusive bodies of gabbro diorite and plagio-granite intrusion, the location of which are strongly influenced by the intersection of sub-parallel strike faults and cross faults.

The prospect was previously explored, prior to Norplat, by trenching, geochemical mapping and heavy mineral concentrate sampling, and two profiles of shallow drilling. The best result gave 30 grammes per tonne gold from a grab sample from trenching. Drilling results were less spectacular and remain below 2 grammes per tonne gold.

Lun Mudchechaive Licence Area
Lun Mudchechaive is located on the eastern extension of the Oleninskoye-Pellapahk mineralised zone where it is intersected by a system of cross faults. The host rocks are amphibolites, crystalline schists and acidic volcanics (rhyolites) of lower Archaean age and a thick dyke-like body of metagabbro plus a small stock of metagabbroic diorite. The hydrothermal metasomatic alteration zone is from 0.8 to 2.0 kilometres long.
 
Lun Mudchechaive was explored by the Russians by trenching and drilling (8 profiles), which have shown 33 low grade poly-metallic mineralised intersections from 1.4 to 9.2 metres thick, with silver grades up to 40 grammes per tonne, copper up to 0.3%, zinc up to 0.5% and gold up to 4 grammes per tonne. A small number of analysed channel and core samples with gold grades, exceeding 1 gramme per tonne were collected from silicified metagabbroic diorites and the outer contact zones, suggesting a similarity with the mineralisation at Nyalm.

Geographical Spread

Ireland, Sweden and Russia

Board of Directors and Key Management

Major Shareholders

Related News

Most Recent Statement