msr september 2009 quarterly report · 30 october 2009 manas resources limited (asx‐msr) is...

Manas Resources LimitedACN 128 042 606

30 Ledgar RoadBalcatta

AUSTRALIA 6021

P +618 9240 7717F +618 9240 2406

W www.manasresources.comE [email protected]

Manas Resources Limited – September 2009 Quarterly Report of 12

30 October 2009

3 0 O c t o b e r 2 0 0 9

S E P T E M B E R 2 0 0 9 Q U A R T E R L Y O P E R A T I O N S R E P O R T

Fast Facts Corporate – October 2009

Listed ASX 22 July 2008

Shares on Issue 119.3M

Options on Issue 79.2M

Market Capitalisation

at 15.5c $18.5M

Cash at Bank $5.0M

ASX Code ‐ MSR

Directors

Stephen Ross

Francis Harper

Mark Calderwood

Colin Carson

Major Shareholders

Perseus Mining

MSR Directors

Macquarie Bank Limited

BT

Highlights

◆ Gold explorer in the

Kyrgyz Republic

◆ Exploring for Carlin‐style

gold deposits

◆ Total JORC Resource

base 875,000 ounces

◆ Obdilla Resource

485,000 ounces,

Shambesai Resource

390,000 ounces

◆ Drilling has commenced

HIGHLIGHTS

◆ OUTSTANDING HIGH‐GRADE RESULTS RETURNED FROM

INFILL DRILLING AT SHAMBESAI

◆ NEW HIGH‐GRADE NORTHERN ZONE DISCOVERED

◆ OVER 12,000M OF DRILLING COMPLETED

◆ $6M CAPITAL RAISING COMPLETED

Exploration

◆ Outstanding drill results returned from infill and extensional drilling at

Shambesai including ‐

21m at 8.75g/t gold from 55m



◆ Aggressive drilling campaign is continuing – 5 drill rigs now drilling

Shambesai and 2 drill rigs now mobilised to Djilginsai

◆ Results are expected to add to the current Mineral Resource

◆ Total Manas Kyrgyz Republic Mineral Resources up 80% to 875,000

ounces of gold ‐

Obdilla 485,000 ounces and Shambesai 390,000 ounces

Both deposits remain open

Corporate

◆ A capital raising consisting of $4M placement and $2M one‐for‐three

rights issue to shareholders was completed

◆ Free attaching one‐for‐two option issue to all shareholders

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Manas Resources Limited

ACN 128 042 606


30 October 2009

Manas Resources Limited (ASX‐MSR) is pleased to report its activities for the September 2009 Quarter on the

Company’s gold projects in Central Asia’s Kyrgyz Republic.

Shambesai Prospect

During May 2009 Manas reported an inaugural Inferred Mineral Resource of 390,000 ounces of gold for the

Shambesai Prospect, located 7km south of the 485,000 Mineral Resource at Obdilla, for a total gold inventory

of 875,000 ounces. See Tables 1 and 2.

Tonnes

(Millions)

Gold Grade

(g/t)

Contained

Ounces Gold

Weathering

1.56 3.4 170,000 Oxide

2.93 2.3 220,000 Fresh

4.50 2.7 390,000 Total

Table 1 – Shambesai Inferred Gold Mineral Resource

During July 2009 Manas commenced an aggressive infill and extensional drilling campaign of over 100 diamond

drill holes for approximately 15,000m of drilling. To date 82 diamond holes for over 8,000m has been

completed on the Shambesai infill program and 19 diamond holes for over 4,000m has been drilled on the

western extensions. Drilling is scheduled to be completed during the December 2009 Quarter.

Highlights thus far of the current Shambesai infill and extensional drill program include –

1. The intersection of significantly better than expected widths and grades from the infill drilling; and

2. The discovery of a northern zone outside of the current Mineral Resource zone.

Significant results from the infill drilling include –

◆ 21m at 8.75g/t gold from 55m in hole SHDDH099 including 14.9m at 12.2g/t gold from 59m



◆ 21.8m at 4.92g/t gold from 103m in hole SHDDH103A including 7.7m at 7.74g/t gold from 103m

◆ 23m at 4.09g/t gold from 67m in hole SHDDH114

The aim of the current program is to upgrade the resource status from Inferred to Measured and Indicated,

and to increase significantly the Mineral Resource at Shambesai by testing the flanks of the mineralised zone

and wide‐spaced drilled areas within it. Three diamond drill rigs are currently undertaking the infill drill

program with more results expected shortly.

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30 October 2009

Figure 1 – Long Section of the Shambesai orebody showing drilled and planned holes

The results announced during the September 2009 Quarter are significantly better than expected, with the

widths and grades in many of the infill holes in excess of the average of the nearest previous drill holes.

Subject to final interpretations, the results for the northern extensions (hole SHDDH103A and the infill hole

SHDDH114) when compared to the original resource model are expected to increase the current Mineral

Resource at Shambesai by extending the current zone of gold mineralisation and extending the total width of

the mineralised zones to in excess of 300m.

The intersections in holes SHDDH103A of 21.8m at 4.92g/t gold from 103m and SHDDH106 of 13.3m at

2.17g/t gold from 96m continue to define the new northern zone which occurs outside of the Shambesai

Mineral Resource. This new zone has the potential to add ounces to the Shambesai Mineral Resource.

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30 October 2009

Figure 2 – Drill hole plan with infill drill holes

Current interpretations show the higher grades are associated with brecciated zones and kaolinisation within

the core of the Shambesai mineralised zone, with these types of structures and alteration providing target

zones throughout the entire South Kyrgyz Gold Project.

The northern discovery zone is proving to be a significant discovery as it exhibits wide, high‐grade intercepts

and it is a new zone that shows very little surface expression. This highlights the potential for further

significant ‘blind’ discoveries as the geological factors controlling these brecciated mineralised zones are better

understood.

Three drill rigs are also operating at Shambesai West, with drill pads and roads having been completed for a

distance of 2 kilometres further west from the current western limit of drilling at Shambesai. This program is

designed to extend the western open‐ended Shambesai Mineral Resource by tracing intermittent trench and

gold‐in‐soil anomalies for a distance of approximately 2 kilometres. For

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30 October 2009

Figure 3 – Drill hole Cross Section 250900mE

South Kyrgyz Regional Exploration Program

Regional Soil Sampling

The South Kyrgyz Gold Project covers more than 4,200km2 of semi‐contiguous exploration licences considered

prospective for Carlin‐style gold mineralisation in the south‐west of the Kyrgyz Republic. The project extends

west from the major regional centre of Osh for approximately 300km in a historical Soviet mining region with

excellent roads and grid power.

Exploration in the form of soil sampling and trenching was completed at Aksu, Karavshin, Akbura and Karabulak.

See Figure 4 for details. A sampling program was also completed at the Maly Naryn area.

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30 October 2009

Figure 4 – South Western Kyrgyz Regional Gold Project showing Nurlau Prospect in SE corner of Karabulak

Savoyardy Joint Venture

During the September 2009 Quarter joint venture partner Kentor Gold Limited (ASX‐KGL) proceeded with pre‐

development work and exploration at the Savoyardy project with a view to a development decision being taken

before the end of 2009. A pre‐feasibility study, aimed at potentially bringing the Savoyardy project into

production in 2010 at a rate of 10,000 ounces per annum for three years has been completed and returned

economics of a US$1.2M capital cost and operating costs of approximately US$370 per ounce.

Results of exploration drilling undertaken during the September 2009 Quarter pointed to a longer life and

increasingly robust operation. A program of surface and underground drilling was undertaken with the first

underground drill results providing evidence that the high grade mineralisation at Rudny continues with depth.

Results for UD23 included 2.3m at 19.7 g/t gold, UD24 included 1m at 9.61 g/t gold and 0.9m at 11.3 g/t gold,

and results for UD27 included 3.1m @ 9.83 g/t gold.

Kentor Gold has been granted an option to purchase Manas’s interest in the Savoyardy Project for a total of

US$1.25M plus a royalty. The option to acquire 100% of the project is exercisable by 31 March 2010 upon initial

payment of US$500,000 at that date and US$750,000 12 months later.

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30 October 2009

Corporate

During the September 2009 Quarter Manas completed a capital raising of just under AUD$6M at $0.10 per

share through the issue of approximately 60 million fully paid shares. The capital raising consisted of a $4M

placement and $2M one‐for‐three rights issue to shareholders. Blackwood Capital Limited and Patersons

Securities Limited were appointed Joint Lead Managers to the $4M Placement Issue and each underwrote the

Rights Issue to a limit of $500,000.

The Placement and Rights Issue was completed with demand from institutional and professional investors well

in excess of the Placement amount of $4,000,000.

A bonus one for two option issue was completed in September 2009.

The proceeds of the July capital raising are to be utilised primarily for increasing the current 875,000 ounce

resource base via ‐

◆ Infill and extensional drilling at the 390,000 ounce Shambesai resource area and the Shambesai West

extensions;

◆ Infill drilling at the 485,000 ounce Obdilla resource area;

◆ Drilling along the 3km long Shambesai western corridor;

◆ Exploration drilling of the 10km long Tolubay corridor;

◆ Commencing metallurgical studies for the combined resource areas; and

◆ Increased exploration throughout the entire 4,400km2 portfolio.

See Figure 5 and 6 for details.

At 30 September 2009 the Company had cash reserves of approximately AUD$5.834M.

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30 October 2009

Figure 5 – Prospects within 8km of Shambesai and 2009 Planned Exploration Programmes

Figure 6 – Prospects within 30km of Shambesai

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30 October 2009

Details of the Manas Resources 100% owned Kyrgyz Gold Projects can be found at the Company’s

comprehensive website www.manasresources.com

For further information ‐

Stephen Ross

Managing Director


Telephone +618 9240 7717

www.manasresources.com

COMPETENT PERSONS STATEMENT

The information in this report that relates to exploration results and mineral resources is based on information compiled by Mr

Stephen Ross. Mr Ross is the Managing Director of Manas Resources Limited. Mr Ross is a Member of The Australasian Institute of

Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under

consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the

‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ross consents to the inclusion in the

report of the matters based on information in the form and context in which it appears.

Information in relation to activities carried out at the Savoyardy Project has been provided by the farm‐in/joint venture partner, Kentor

Gold Limited, who has consented to the inclusion of that information in this report in the form and context in which it appears.

Statements regarding Manas Resources’ plans with respect to its mineral properties are forward‐looking statements. There can be no

assurance that Manas Resources’ plans for development of its mineral properties will proceed as currently expected. There can also be

no assurance that Manas Resources’ will be able to confirm the presence of additional mineral deposits, that any mineralisation will

prove to be economic or that a mine will successfully be developed on any of Manas Resources’ mineral properties.

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30 October 2009

Manas Resources Limited ‐ South Kyrgyz Gold Project

Company Overview

Manas Resources Limited is an Australian based company focused on exploring and developing its 100%

owned gold projects in the Kyrgyz Republic. The Company has a Mineral Resource base of 875,000 ounces of

gold at the Obdilla and Shambesai prospects, which are only 7 kilometres apart.

The main focus for Manas is exploring for Carlin‐style gold deposits on seven projects collectively called the

South Kyrgyz Gold Project covering over 4,200km2, with a number of these projects already at an advanced

stage of exploration. Manas technical staff located in the Kyrgyz Republic are working on defining resources

and developing these gold projects. Manas have a joint venture on the high‐grade Savoyardy project with

ASX‐listed Kentor Gold Limited.

The Kyrgyz Republic straddles the Tien Shan gold belt which stretches from eastern China through into

Uzbekistan and Tajikistan. This mineral province is considered to be highly prospective for ‘World‐Class’ gold

deposits and it hosts the +100 million ounce Muruntau gold mine in Uzbekistan.

See Figures 7 and 8.

Table 2 – Summary of Mineral Resource Estimates

Shambesai and Obdilla

Tonnes

(Millions)

Gold Grade

(g/t)

Contained

Ounces Gold

Category Prospect

4.50 2.7 390,000 Inferred Shambesai

6.30 1.8 353,000 Indicated Obdilla

2.90 1.4 132,000 Inferred Obdilla

Shambesai is reported at a gold cut‐off grade of 0.5g/t gold.

Obdilla is reported at a gold cut‐off grade of 1.0g/t gold. Notes pertaining to Obdilla resource estimate which was calculated in December 2007 can be found at

www.manasresources.com and in the Manas Resources Limited prospectus dated May 2008.

Notes pertaining to Shambesai resource estimate which was calculated in May 2009 can be found at

www.manasresources.com and in the Manas Resources Limited Announcement dated May 2009.

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30 October 2009

Figure 7 – Location of the Kyrgyz Republic in Central Asia

Figure 8 – Manas Resources Project Locations

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30 October 2009

TABLE 3 – SIGNIFICANT INTERCEPTS FROM SHAMBESAI PROSPECT HOLE EASTING

m

NORTHING

m

LENGTH

m

AZIMUTH

˚ INCL

˚ FROM

m

TO

m

INTERVAL

m

GOLD

g/t

SHDDH098 250900 4440350 75.5 0 ‐70 41 72 31 4.26

including 43 58.1 15.1 7.69

SHDDH099 250900 4440430 110.0 180 ‐70 55 76 21 8.75

including 59 73.9 14.9 12.2

SHDDH097 250985 4440340 50 0 ‐70 11 18 7 1.81

SHDDH100 250985 4440270 81.8 0 ‐40 NSI

SHDDH101 250900 4440270 120.4 0 ‐65 12 20 8 2.15

SHDDH101 39 41 2 3.16

SHDDH102 250900 4440350 120 180 ‐70 46 52 6 2.31

SHDDH104 250900 4440430 98.7 0 ‐80 72 83 11 1.68

Including 73 76.7 3.7 3.69

SHDDH105 250985 4440400 98.6 180 ‐80 31 51 20 6.40

including 33 48.2 15.2 8.25

SHDDH109 250900 4440430 121.1 0 ‐60 107 108 1 0.53

SHDDH103 250900 4440500 90.7 0 ‐65 80 83.3 3.3 1.22

SHDDH107 250985 4440460 190 0 ‐50 109 118 9 9.34

and 129.9 134 4.1 1.26

SHDDH110 250985 4440400 100.4 0 ‐65 48 56.2 8.2 2.68

SHDDH113 250900 4440500 148.9 0 ‐50 98 133 35 2.24

including 106 113.7 7.7 5.50

SHDDH103A 250900 4440500 150 0 ‐65 83 92.4 9.4 1.07

and 103.3 125.1 21.8 4.92

including 103.3 111 7.7 7.74

SHDDH106 250985 4440520 137 0 ‐60 96 109.3 13.3 2.17

including 97 103 6 4.29

SHDDH108 250985 4440400 88.2 0 ‐65 37 38 1 1.16

SHDDH111 250810 4440460 185.4 0 ‐65 NSI

SHDDH112 250810 4440530 167.8 0 ‐50 NSI

SHDDH114 250985 4440460 133.7 0 ‐75 67 90 23 4.09

SHDDH115A 250810 4440460 110.8 180 ‐85 113 123 10 3.56

NOTES TO TABLE 3 – SHAMBESAI DIAMOND DRILLING

1. All holes are drilled by diamond drilling.

2. All drill results are for an average 1m interval crushed half core samples.

3. All sample results are reported from Alex Stewart Laboratory in Bishkek, Kyrgyz Republic using industry‐standard 30g fire assay.

4. All results of duplicate samples are routinely monitored to be within acceptable limits for the type of assay method used.

5. All assays are quoted to two decimal places.

6. All intercepts are greater than 1 gram metres and are quoted using a 0.5 g/t lower cut‐off, no high cut‐off grade and up to 4m of

internal dilution (< 0.5 g/t gold).

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msr september 2009 quarterly report · 30 october 2009 manas resources limited (asx‐msr) is...

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