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Market:	ASX
Sector:	General Mining
EPIC:	KOR
Latest Price:	0.15 (-3.33% )
52-week High:	0.40
52-week Low:	0.14
Market Cap:	12.76M

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Korab Resources

Korab Resources (ASX: KOR) operates organic phosphate rock and magnesium projects in Australia. Korab also holds shares in two gold mining companies Melrose Gold Mines and Lugansk Gold.

Korab Resources chairman tells AGM, development continuing of gold and phosphate projects

Monday, November 30, 2009

In his address to the AGM in Perth today, Chairman of Korab, Andrej Karpinski painted an upbeat picture of the next 12 months, as the company emerged "unscathed from a stressful 12 month period that caused casualties among the junior resources sector."

Describing it as the most difficult period in the its 11 year history, he said considerable progress had been made with key projects and they are now closer to production.

Highlights achieved included:

- Operations had resumed at Bobrikovo gold and silver mine in the Ukraine
- The Bobrikovo gold mine is to be spun-off from Korab into a new listed entity with dual listing in Australia and Canada. Korab shareholders will be given free shares in the independent listed entity.
- A Copper and nickel anomaly was discovered in the Northern Territory
- Gold exploration will commence at Sundance and Sundance East deposits in the Northern Territory.
- GeolSec organic phosphate operations permitting process is progressing as planned
- A review of the Winchester magnesium project in the Northern Territory has commenced
- Work on the development of Melrose gold project in Western Australia’s goldfields has commenced

Korab plans to construct a small gravity circuit on site to commence production of gold in concentrate. The free cash is planned to be used to gradually expand the production from 15,000 ounces to 40,000 ounces pa.

With the recent strengthening of the gold price, it became apparent that the value of this project could be increased significantly if the first year production could be raised to a range of 40,000 to 60,000 ounces ounces pa, lifting to over 100,000 pa over the subsequent 3 years.

This would however require a much larger processing plant and substantial additional funding.

Korab is intending to continue development of its gold and phosphate projects in Australia and to spin-off its overseas gold project into an independent listed entity which would then continue the development work to bring the project into pro

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