iron ore mining project upgrade

A very positive report with more to come from expanded drill program. They are increasing rc drilling to 10000 metres a month from 3-4000pm with2 new rc drill rigs. Very good infrastructure which is close to Chinese and Russian borders and their refineries and smelters.



ASX / MEDIA RELEASE
Registered Office Kyrgyz Republic Office
Level 36 Riparian Plaza, 235/2 Erkindik Prospect, Bishkek
71 Eagle St Brisbane 4000 Kyrgyz Republic 720739
Phone: 61 (0) 7 3121 3206 Phone: +996 312 621 389 www.kentorgold.com.au
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KENTOR GOLD LTD
ACN 082 658 080
Monday 18th August 2008
Khantau IOCG Project Geological Data
Key Points
„h The Ministry of Energy and Mineral Resources in Kazakhstan has granted a consent
to release geological data relating to the Khantau Project.
„h Drilling to date has identified continuous mineralisation over a 400m strike length.
„h Best down-hole intersections:
- 154.5m @ 44.1% Fe203, 0.6% Cu and 1 g/t Au; and
- 81.2m @38.2% Fe203, 0.5% Cu and 1.2 g/t Au.
„h Mineralisation is open along strike and down dip.
„h Drilling to date has shown a good correlation between the magnetite mineralisation
and the magnetic surveys.
„h A magnetic survey has identified 26 magnetic anomalies over a 40km strike
length on the licence area suggesting significant potential for further
mineral discoveries.
On the 31st of July 2008 Kentor Gold Limited (Kentor) announced the proposed Joint
Venture of an advanced Iron Oxide Copper Gold (IOCG) project in the Khantau area of the
Zhambyl Oblast of Kazakhstan. A consent from the Kazakhstan Government was required
prior to release of the geological information and this has now been granted.
Kentor Gold has entered into a Memorandum of Understanding with Arya Overseas Ltd
enabling Kentor to earn up to 51% equity in the Khantau IOCG Project by undertaking an
agreed exploration program and arranging finance for the Project.
Kentor will pay US$30 million in staged payments in exchange for the right to earn up to a
51% controlling interest in to the Project.
Geology
The Khantau Project hosts a cluster of high magnetic intensity geophysical anomalies with
spatially associated geochemical haloes (Au, Ag, Cu, Mo, Pb) over a 40km strike length. It
includes the Khantau, Dalnyee, Oreol and Promez prospects where drilling has identified
IOCG mineralisation.
The Project is located near the regional north-west trending Kordai-Moinkum Suture Zone
(KMSZ). The KMSZ extends from Kyrgyzstan in the south to central Kazakhstan.
The area contains an Ordovician volcanic-sedimentary suite of rocks intruded by the Kordai-
Shatyrkol granitoids
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Skarns of garnet-pyroxene-magnetite have developed along the sheared granitoidsvolcanics
contact. Post-skarn K-feldspar, silica, albite and propylitic alteration is evident in
the prospects. The entire Project area is covered by 220-250m of Mesozoic-Cenozoic cover.
The entire licence area has been covered by a ground magnetic survey (Figure 2). A minor
drilling program was then conducted and intersected copper-gold bearing garnet-pyroxenemagnetite
skarns.
Exploration
In 1993, the Kazakhstan Government conducted 16km of regional stratigraphic drilling
without specifically exploring the magnetic anomalies. The stratigraphic drilling program
results were used to interpret the geology (Figure 1) and delineate geochemical anomalism.
The primary mineralisation of interest at the Khantau prospect comprises iron in magnetite,
copper in chalcopyrite and free gold. Mineralisation of secondary interest includes silver and
cobalt. Other minerals occur in trace amounts and include melnikovite-marcasite, marcasite,
pyrite, cobaltite, sphalerite, galena, bismuthinite, gold and silver tellurides (krenneritecavelarite
type). The mineralisation is of an IOCG type.
Nine diamond holes on 50m sections drilled in 2008 at the Khantau prospect have identified
Fe-Cu-Au mineralisation over a 400m strike length (Figure 3). Two steeply dipping, subparallel
magnetite lodes have been identified. The main lode is up to 30m true-width. The
second lode is narrower and discontinuous. The mineralisation remains open along strike in
both directions and at depth. The best results are presented in Table 1 below.
The primary mineralisation of interest at the Dalnyee prospect comprises gold and copper in
chalcopyrite. Other minerals identified include magnetite, pyrite, galena, hematite, and
uranium-thorianite. Drilling has identified anomalous values for Au, Cu, Ag, Co, Pb, Mo, Sb,
Bi, Ni, Cr, and U on two sections at 3km spacing. The mineralisation is of a veineddisseminated
type. K-feldspar alteration, silicification and albitisation are widespread
through the area. This prospect has yet to receive drilling under the current exploration
program.
The Oreol and Promez prospects occur between the Khantau and Dalnyee prospects and
feature coincident gold and radiometric anomalies identified from drill holes. They have yet
to receive drilling under the current exploration program.
Figure 2 shows the high magnetic intensity geophysical anomalies that are currently
targeted for exploration drilling. The magnetic anomalies are all believed to represent bodies
of magnetite. The results received thus far, early in the exploration phase, indicate the high
potential for further mineral discovery at the Khantau Project