what is happening with lugansk

Some things appear to have occurred with Lugansk, although no progress with an IPO, despite the apparent commencement of some mining. Given recent prices of gold and silver, one would have thought these matters of some interest to KOR shareholders and a clear update.

For example:

Item 1:

By: Esmarie Swanepoel

29th November 2010

PERTH (miningweekly.com) – Multi-metals explorer Korab Resources on Monday reported that its spin-off subsidiary Lugansk Gold has received a A$20-million capital injection from an unnamed investor.

The investor has signed a letter of intent with Korab Resources which would allow it to participate in a pre-initial public offering (IPO) placement. The strategic investor would also take part in the IPO of Lugansk Gold, subscribing for additional shares.

Lugansk was spun off from Korab during June, and would seek admission to trade on the ASX following an IPO. It was initially planned that the IPO would raise between A$50-million and A$55-million.

However, Korab said in a statement on Monday that following the signing of the letter of intent, parties other than the strategic investor taking part in the Lgansk Gold IPO would be limited to 25-million shares, which were expected to sell at higher than 30c a share.

These new shares would be reserved for Korab shareholders, giving them the priority to subscribe ahead of other applicants. The priority ratio would entitle Korab shareholders to one Lugansk share for every three Korab shares held, or $2 000 worth of shares, whichever was greater


Item 2:



By: Esmarie Swanepoel

4th August 2010



PERTH (miningweekly.com) – ASX-listed Korab Resources has taken full ownership of the Bobrikovo gold mine, in the Ukraine, after acquiring the outstanding 26% shareholding from a Ukrainian investor.

The project was now held by Korab subsidiary Lugansk Gold, which was spun-off in July.

Lugansk would seek admission to trade on the ASX during September, following an initial public offering (IPO) of between A$50-million and A$55-million. Korab shareholders would receive a priority allocation in the IPO ahead of other investors, and were being offered one Lugansk share for every three Korab shares, or A$2 000 worth of shares, whichever was the greater.

The IPO issue price was expected to be around 30c a share.

Korab reported that Lugansk would be developing a one-million ounce gold mine at Bobrikovo, through its subsidiary Donetsky Kryzah (DKL).

A gravity processing plant was being redesigned to increased the mine’s production capacity to 60 000 oz/y, and current definitive feasibility studies have indicated that the mine had the potential to be a low-cost producer, at around $250/oz.

The construction of the plant at Bobrikovo was expected to start shortly, after the successful completion of the IPO, with gold production expected to start in early 2012.

The mine is fully permitted and was currently mining and stockpiling oxide ore.

Bobrikovo has a Joint Ore Reserves Committee-compliant mineral resource of around 20,25-million tons, at 1,55 g/t gold, for more than one-million ounces of gold.


Item 3:



By: Esmarie Swanepoel

25th March 2010



PERTH (miningweekly.com) – ASX-listed precious metals producer Korab Resources has started mining at its Bobrikovo gold mine in the Ukraine, with the initial aim of mining around 40 000 t/m of ore.

In a statement on Thursday, Korab said that it would initially mine oxide ore from the surface to around 30 m or 40 m in depth, and the ore will be stockpiled on site pending the construction of the processing plant. It was anticipated that gold production would start in 2011.

The Bobrikovo project has a Joint Ore Reserve Committee (Jorc) compliant resource base of 960 000 oz of gold in measured, indicated and inferred categories. In addition to the classified mineral resource, Bobrikovo has a substantial exploration potential.

Korab noted that government geologists estimate that the primary ore zone between the 150-m level and the 3 200-m level contains between 2,3-million ounces and three-million ounces of gold, highlighting the prospectivity and development potential of the deposit at depth.

Korab started developing the Bobrikovo gold mine in June of 2008, through its 74%-owned subsidiary, Donetsky Kryazh (DKL). Korab’s equity in DKL is held by its Australian subsidiary, Lugansk Gold.

The remaining 26% interest in DKL is held by Ukrainian investors.

In February, Korab reported that Lugansk was seeking a separate listing on the ASX, following an initial public offering (IPO).

Funds raised by the IPO would be used to cover the capital expenditure associated with the construction and commissioning of the processing plant, as well as for working capital requirements and to repay loans from Korab.

Edited by: Terence Creamer