Business
Acquisition of Option
Acquisition of Option.
About this update from Cerillion Plc
[{"type":"text","content":"\n Celtic Resources Holdings PLC\n11 September 2007\n\n\n\nFOR IMMEDIATE RELEASE 11 September 2007\n\n\n Celtic Resources Holdings Plc\n (\"Celtic Resources\" or \"the Company\")\n \n Celtic acquires exclusive option for 2.4 million ounce Lobash Gold-Copper\n deposit\n\nHighlights\n\n •Exclusive option to purchase 100% of the Lobash gold copper deposit in\n Karelia, Russia\n\n •Celtic to pay US$150,000 and complete a drilling program to confirm possible \n 2.44 million ounces of gold, to license owner, Promnedra\n\n •Payment terms to range from US$5 to US$10 per ounce for proven C1 resources\n\n •Option is until 31 December 2007 with a six month extension possible\n\n •Unpublished geological resources are 128.94 million tonnes at 0.59g/t gold\n and 0.15% copper\n\nCeltic Resources (AIM: CER) has acquired an exclusive option to assess and \npurchase 100% of the Lobash gold copper deposit in the central Karelia region of \nRussia. The option has been granted by the owner of the property, closed joint\nstock company Promnedra. Principal terms were an option payment of US$150,000 \nand a commitment by Celtic to complete a mutually agreed drilling program that \nconfirms a minimum of 76 tonnes (2.44 million ounces) of gold in Russian C1 or\nJORC equivalent category. The term of the option is until 31 December 2007, with \na six month extension to be granted, if required by Celtic. Payment terms will \nrange from US$5/oz to US$10/oz for proven C1 resources.\n\nFollowing the discovery of Lobash in 1980 by the \"Karelian Geological\nExcursion\", 29 holes totalling 6,000m of 64mm diamond drilling were completed.\nThis was based upon 200m x 100m drill spacing to depths of 50m to 350m. This was\nfollowed in 1993 with a further 26 infill diamond holes on a 100m x 50m spacing\nin the centre of the deposit, targeting the higher grade stockwork core and an\nadditional two extension holes drilled along strike to test mineralisation\ncontinuity. To date, this drilling has not closed off the lateral, or down dip,\npotential of Lobash. However, it has confirmed the presence of a higher grade\ncore zone with gold grades in excess of 1.0g/t gold covering broad mineralised\nzones varying between 100m to 200m. Outside of the main stock work core the\ntabular ore lodes vary in thickness averaging 10m to 20m, but at lower grades.\n\nA multi ph...