Akdjol Exploration Area

The Akdjol gold exploration licence is located approximately 3km north of Tokhtazan at an elevation of between 2,700m to 2,800m. The prospect is geologically similar to the Tokhtazan deposit with Palaeozoic sediments thrust over Proterozoic metavolcanics and intruded by diorite however Akdjol contains significant silver grade.

The mineralisation occurs in a 400m long, NNW striking thrust zone. Individual ore bodies are 2m to 5m wide and occur within zones of intensive brecciation and silicification with pyrite and minor galena, sphalerite, malachite and gold. Oxidation is estimated to exceed 80m depth. Five ore bodies have been delineated by a programme of trenching, pitting and the excavation of short adits. Significant gold intersections from historical trenches include: 6.1m at 7.7g/t, 8.9m at 9.1g/t, 2.4m at 26.9g/t and 2.6m at 13.2g/t.

Exploration Update

Within the ongoing 2008 / 2009 exploration programme, the Company performed 3,140m³ of trenching and road cut sampling, with some 2,532 samples collected. In 2008, the works were focused on the Bulderek occurrence located 3.5 km SSW from the Tokhtazan licence. The works included prospecting, trenching and geophysical exploration:

• dipole dipole induced polarisation (“DD-IP”) (interval: 50m, depth: 200m, total: 12.8km);
• magnetic survey (interval: 25m, total: 41.45km);
• gamma-ray spectrometry (interval: 25m, total: 43.3km).

The 2008 works identified a previously unknown Cu-Au anomalous zone.

An exploration programme including trenching, geophysics and drilling, is being implemented for the Akdjol project area.

In 2009, the Company has a work commitment to drill 1,000m within the licence.