Celtic Resources Holdings PLC
12 June 2007
FOR IMMEDIATE RELEASE 12th June 2007
Celtic Resources Holdings Plc
("Celtic" or "the Company")
Dostyk farm out agreement signed with Cigma Metals Corporation
Celtic today announces that an agreement has been signed between Eureka Mining
Plc ("Eureka") and Dostyk Gold LLP, its 100% owned subsidiaries, and Cigma
Metals Corporation ("Cigma") which will allow Cigma to earn up to 90% of Dostyk
Gold LLP.
Dostyk Gold LLP is the holder of the license of the 14,000 km2 Dostyk mining
area, located in northern Kazakhstan. It is Cigma's intention to convert the
current resource estimates into JORC compliant resources.
Summary:
• Cigma has made an initial payment of US$300,000 to secure 51% of the
project. These funds will be used by Dostyk LLP to fund the working
programme in accordance with the license conditions;
• Four diamond drilling rigs are currently operating on Dostyk's Berezky
and Quartzite copper and gold prospects, with 1,300 metres drilled to date.
• Cigma has the right to acquire a further 20% following a second payment
of US$700,000 increasing it's percentage participation to 71%;
• A third and final option to acquire a further 19% on payment of
US$1,000,000 in 2008 will increase Cigma's percentage participation to 90%,
upon which Eureka will maintain a 10% carried interest.
For further information please contact:
Kevin Foo / Jonathan Scott-Barrett Leesa Peters / Jane Stacey
Celtic Resources Holdings Plc Conduit PR
Tel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6666 / + 44 (0)781 215 9885
Investors@celticresources.com leesa@conduitpr.com
www.celticresources.com
Dostyk
The Dostyk mining area is situated in northern Kazakhstan between the cities of
Semipalatinsk and Karaganda, in a well developed industrial region of Kazakhstan
. Dostyk's properties comprise the Mykubinsk exploration and mining licence (MG
785) covering an area of 14,189 km(2) and the Central Kazakhstan exploration and
mining licence (MG 612) covering an area of 4,917 km(2). Both licences were
granted in 1995 for a period of 25 years with minimum expenditure commitment of
US$5 million for each licence.
The geology of the Dostyk properties comprises mainly volcanic and sedimentary
rocks varying in age from Carboniferous to Ordovician. Both licence areas are
traversed by the central Kazakhstan deep fault and a number of complimentary
fault systems. Granitoid intrusives are also seen in the area. There are
numerous known occurrences of VMS, porphyry, epithermal/mesothermal gold and
sedex style mineralisation located by soviet regional exploration activity. Many
of these occurrences require further work and Eureka has prioritised five areas
for future exploration work.
Cigma has started drilling on 2 of the 5 areas aiming to convert the deposits
into JORC compliant Resources. A program of approximately 20,000 metres of
drilling has been planned and budgeted.
Cigma Metals Corporation
Cigma Metals Corporation is a mineral exploration company focusing on the
exploration and development of its 3 exploration properties totaling 740 square
kilometers in the Tomsk Oblast region of Siberia in Russia, and approximately
14,000 square kilometers in the Dostyk region of Kazakhstan. All the project
areas were selected based on their proximity to a well-developed infrastructure,
known mineral occurrences and from historical records of gold and base metals
production. Cigma Metals Corporation's stock trades on the following exchanges
under the symbol "CGMX.PK" on the NASD OTC Pink Sheets in the United States of
America, and under the symbols "C9KA.F" on the Frankfurt Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
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