The only significant exploration work undertaken at Urasar was carried out in the 1950’s through the early 1970’s by Soviet government exploration teams. The work focused on a 250m wide, 7.2km long quartz-sericite-pyrite alteration zone along the Chibukhlu fault and comprised 16 trenches, six adits and several drillholes (the latter not currently located). Three polymetallic precious metal deposits were defined based on Soviet era, non-NI 43-101 compliant resource models, named the Black River, Chibukhlu and Hanqakutak deposits. Other similarly mineralized areas were also identified as part of this work and constitute second order targets in upcoming programs. The figure below shows the location of two of the deposits as well as the prospects defined by this work.
Patany Erkaban LLC based in Yerevan, Armenia, completed a mineral resource estimate for the three deposits in 2008 based on the Russian C1, C2 and P mineral resource categories using the Soviet historical data and including several duplicate drillholes. They estimated that the Black River deposit hosts 209,000 ounces Au in the C1+C2 categories and 334,000 ounces Au in the P category. The Chibukhlu deposit was reported to have good potential for Cu with up to 20,000 tonnes of Cu in the P category as well as 135,000 ounces Au in the C1+C2 categories and 315,000 ounces Au in the P category. The Hanqakutak deposit, which lies mostly outside of the Urasar license boundary, is estimated to host more than 500,000 ounces Au in the C1+C2 and P categories. (Ounces and tonnes have been rounded to the nearest 1,000). A NI 43-101 compliant report is being prepared and is expected to be posted on SEDAR within the next three to four weeks. The report will not include an update of the mineral resource estimate.