Encouraging gold grades for the Kavkaz-license


Kopy Goldfields AB (publ) (First North: KOPY) is happy to announce encouraging drilling results within Kavkaz license, with intercept 1.0 meters at 3.38 g/t gold, 10 meters at 2.79 g/t gold and 2.8 meters at 2.94 g/t gold. The structure is open in all directions.

This is the first out of a sequence of results from the various projects that have been carried out during the exploration season 2011 and will be reported within the coming weeks.

Within Kavkaz- license ("Kavkaz"), Figure 1 and license no 2 on the map below, Kopy Goldfields has explored two areas in 2010-2011. Encouraging goldgrades were shown in several holes (Table 2 and 3), which was different drill targets comparing to the historical Russian resources, see Table 1. The first gold mineralization (Table 2) was traced down to the depth of 180 meter and along the strike for 1,090 meter within the boundaries of Kavkaz license along the Milliony Fault Structure ("MFS", no 2 in Figure 1). The thickness of the gold mineralization reaches 16 meter. The structure is open along strike and to depth, see figure 1 below. A second gold mineralization (Table 3) was traced along the Central Anticline Structure ("CAS", no 1 in Figure 1) for the strike of two kilometers.

Exploration during 2011 has been done through ten core holes (HQ and PQ diameters) of total 1,602 meters and eight Reversed Circulation (RC) holes (127 mm) of total 948 meters. The spacing between the holes has been from 80 to 160 meters. All samples were fire assay gold tested in Alex Stuart Lab in Moscow. However, it was at this stage not possible to make mineral resource estimate within the JORC code as the spacing between drill holes is not close enough to be reported in Inferred or Indicated resources.

The drilling results on MFS (figure 1 and 2) will be in addition to the historic gold resources (no 3 in Figure 1) for Kavkaz.The historic Russian resources for Kavkaz are reported for only for high grade quartz vein. Kopy Goldfields did not carry out any additional work on the mineralization reported in historical Russian estimations.

The company's strategy is to consider the two areas within Kavkaz as targets for cluster mining together with the Uspenskoye- project on the Prodolny-license. The company will review further exploration plan for the area in 2012 after getting all analytical results from adjusted areas.

Mikhail Damrin, CEO of Kopy Goldfields, commented the results:
- We have now finalized the exploration season and are receiving results from Alex Stewart Lab in Moscow from our six current projects. We will consider further exploration on Kavkaz during 2012. Our aim together with SRK Consulting was to develop a model of the gold structure and develop a 3D block model (Figure 1), in order to estimate potential scale of mineralization. The exploration has confirmed that the mineralization extends beyond Kavkaz boundaries into Uspenskoye- project. Further drilling will be required before mineral resources could be reported within the JORC code. However, now we have a good understanding over the resource potential for the structure and we are satisfied with the first results.

The technical information in this press release was reviewed by Alexander Mikhailov, from Kopy Goldfields AB. Alexander is an exploration geologist with 28 years of professional experience in the gold exploration. Graduated from the Moscow Mineral Exploration Institute (The leading Soviet mineral exploration training establishment) in 1982. Fellow of the London Geological Society (1008536) and Society of Exploration Geochemistry.

For the complete press release including tables, images and maps see attached document.
För pressmeddelande på svenska se bifogat dokument (Swedish)


Stockholm, November 2, 2011

For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17
Anna Sandgren, Vice President IR, +46 709 73 71 31
Kjell Carlsson, Chairman of the Board, +46 70 588 21 49

The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2011-11-02 (English).pdf
Kopy Goldfields Pressrelease 2011-11-02 (Swedish).pdf

Mer information från beQuoted
Nyhetssida Kopy Goldfields (Swedish)

About Kopy Goldfields AB
Kopy Goldfields AB (publ), listed at NASDAQ OMX First North in Stockholm is a gold exploration and production company operating in one of the most gold rich areas in the world; Lena Goldfields, Bodaibo, Russia. The company holds 100% of seven bedrock exploration- and production licenses. The long term target is to develop a gold exploration and production company with resources of 5 Moz supporting annual gold production of 0.2 Moz.

Kopy Goldfields AB applies International Financial Reporting Standards (IFRS), as approved by the European Union. Mangold Fondkommission acts as Certified Adviser and Liquidity Provider, contact number: +46 8-503 015 50.

The share
Ticker: KOPY
www.nasdaqomxnordic.com/firstnorth/
Outstanding shares: 9 327 193


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