Manas Resources (ASX: MSR) has returned a high grade gold intersection of 33.7 metres at 10.74 grams per tonne (g/t) gold from drilling at Shambesai shear zone, at the 100%-owned Shambesai project in the Kyrgyz Republic.
The outstanding results improve the project's economics by substantially increasing its underground potential. The intercept also included 7.8 metres at 28.64 g/t gold.
Stephen Ross, managing director of Manas Resources told Proactive Investors today, "these results fill the gap between the upper and lower sulphide zone, joining the two zones."
"These results will add to the resource and improve the project economics". With that, Manas will now look to drill deeper than the 400 metres that has been done to date.
With six rigs operating at Shambesai, the shear zone containing the high grade mineralisation is actually outside the current resource boundary. Which would imply significant upside in the resource estimate from the current 645,000 ounce Mineral Resource base at Shambesai as Manas progresses the Feasibility Study in 2011.
Within the high grade intersection there are wide high-grade zones and include intercepts of 15.8 metres at 17.81g/t gold from 125 metres, 7.8 metres at 28.64g/t gold from 133 metres and a bonanza 4 metres at 42.03g/t gold from 136 metres.
The wide high-grade intersection from hole SHDDH224 was returned from sulphides in the structural zone separating the Shambesai main and west zones.
Other highlights include:
- 17.45 metres at 2.55 g/t gold;
- 5.1 metres at 4.49 g/t gold; and
- 13.9 metres at 1.79 g/t gold.
The drill results show that the mineralisation continues at depth and demonstrate continuity of the mineralisation on the contact between the limestone and siltstone.
The company has a Mineral Resource base of 1,130,000 ounces of gold at the Obdilla and Shambesai prospects, which are only seven kilometres apart.
A total of 20,000 metres of drilling is to be completed across all exploration sites, and so far only 5,000 metres has been reported.
Currently six rigs are operating at Shambesai and two portable rigs are in use at Pum with 11,000 metres completed on all areas.
The expanded program of more than 12,000 metres of resource and development drilling is aiming to upgrade all resources in the current pit optimisation. More than 9,700 metres of the program has been completed at Shambesai.
It will test areas for further shallow oxide at the edge of the existing resource and the fault zone between the deep and main Shambesai zones.
In addition the program intends to define the zone at the western boundary of the current pit with the goal of substantially increasing the resource and pit extent.
With the current resource base likely to increase in 2011, the future looks bright for Manas and the current valuation looks undemanding.