RWE Australian Business News
August 21, 2006 Monday 11:54 AM AEST
Iberian Resources fast tracking Armenian gold program
Sydney Monday, August 21
Iberian Resources (IBR) is implementing a program to fast track the
expansion of the resource base at the Lich Gold Project in Armenia.
A large exploration drilling programme will commence in the near term,
says managing director Matthew Wood.
He believes the Lichkvaz Gold Project is a world class gold project
that has not been explored for more than 20 years.
Mineralisation comprises an extensive swarm of more than 12
sub-parallel epithermal veins.
The majority of the current +1 million ounce resource is contained
within just one of these veins.
The other veins are known to be well mineralized, but only minimal
exploration has been undertaken on them previously.
A diamond core drilling rig and a reverse circulation drilling rig
have been contracted and are being mobilized to site.
The company will also commence drilling with its own underground core
drilling rig.
It is expected that exploration drilling will continue at the Lichkvaz
Gold Project for at least 12 months, the report to the ASX disclosed.
The company will be seeking to contract additional drilling rigs
during this period.
The company has determined that its expansion strategy in Armenia is
best served by focusing all of its exploration efforts on the Lichkvaz
Gold Project and surrounding exploration licences.
Exploration efforts will be concentrated on increasing resources
and reserves within close proximity to a central expanded stage two
processing plant.
As a consequence of this strategy the Company has withdrawn from its
joint venture in the Marjan Gold Project in central Armenia and will
divert these funds to exploration at the Lichkvaz Gold Project.
Iberian Resources is fast approaching a significant milestone of
first gold production from the Lichkvaz gold project in Armenia.
"The company is well positioned to grow rapidly and to generate early
cash flow by bringing the Lichkvaz Gold Project into production during
an environment of high gold prices.
"The company is also considering a number of potential corporate
strategies to fast track the development and growth of the company,"
Matthew Wood, managing director declared.