NEW YORK--(BUSINESS WIRE)--Śląsko Krakowska Kompania Górnictwa Metali Sp. z o.o. (“SKKGM”), a Polish geological exploration company majority owned by U.S.-based investment firm The Electrum Group (“Electrum”), today announced the start of its latest drilling program at the Bolesławiec-Iłowa and Osiecznica-Nowiny (collectively known as “BON”) concessions in the Kupferschiefer Basin. SKKGM also commenced further drilling in early November at the Myszków mining concession in the Będusz fields within Silesia, Poland.
The program at Myszków will begin with an initial six-hole infill and confirmatory diamond drill campaign. The project is in the early stages of exploration and aimed at identifying and mining molybdenum, copper, and tungsten. The Myszków concession is approximately 211 square kilometers and hosts one of the ten largest molybdenum deposits in the world. It has the potential to be the first producing molybdenum deposit in Europe.
“There is a phenomenal opportunity for resource expansion in Poland, not only due to the country’s rich mineral history, but also because of the country’s position as one of the strongest economies in Europe,” said Ambassador Mark Wallace, CEO of Tigris, a New York City-based investment, advisory and asset management firm that focuses on the natural resources sector through its Electrum Group of Companies. “We are excited about working in Poland.”
Electrum is a U.S.-based private investment management firm that focuses on the natural resources sector, engaging in strategic hands-on resources investing, global resources exploration and development. In March 2011, Electrum Strategic Metals III LLC, a member of The Electrum Group, acquired 55 percent of the outstanding shares of SKKGM. Strzelecki Metals Ltd. owns the remaining 45 percent of the company.
“SKKGM looks forward to further developing the resource in the Myszków deposit and in identifying a resource at BON,” said Bart Bogacz, SKKGM’s Director. “By partnering with the internationally renowned Electrum Group, we can reenergize SKKGM’s work and benefit from the strong financial backing of Electrum and its vast technical and geological expertise. We look forward to continuing our work under the highest international standards of environmental protection and industry best practices.”
SKKGM’s drilling program will focus on its BON area concessions in the highly prospective Kupferschiefer Basin. The Company plans to drill one hole on the Bolesławiec-Iłowa concession and one hole on the Osiecznica-Nowiny concession by the end of January 2012, with hole depths of 400 and 685 meters respectively. Holes will be initiated with reverse circulation methods, switching to core drilling at target depths.
Drilling at BON is planned to confirm the presence of the famous Kupferschiefer horizon, to obtain relevant assay information and to develop data points to guide future drilling. This represents the Company’s first drilling campaign in the Kupferschiefer district. The BON area concessions are situated in the Kupfershiefer Basin, which hosts one of the world’s largest concentrations of copper and silver.
Previously in 2007, SKKGM undertook its initial drill program in the Myszków project and together with historical drill holes resulted in a Joint Ore Reserves Committee (JORC)-compliant inferred resource of 726 million tonnes (Mt) at 0.12 percent molybdenum equivalent (MoEq), using an 0.085 percent MoEq cut-off grade. The deposit remains open in several directions, and further exploration targets occur nearby. SKKGM’s latest drill program intends to further establish and expand the resource.
SKKGM has operated in Poland since 2005. At the beginning of 2008, SKKGM through its 100 percent owner Strzelecki Metals Ltd. became a quoted company listed on the Australian Stock Exchange in Sydney. In March 2011 Strzelecki Metals Limited announced completion of its agreement with Electrum Strategic Metals Eastern Europe SA (“Electrum”) with the acquisition by Electrum of 55 percent of Strzelecki’s Polish subsidiary SKKGM with an earn-in right of up to 75% of the company. Strzelecki Metals Ltd. owns the remainder of the Company.
About the Electrum Group of Companies
The privately-held Electrum Group of Companies is involved in precious metals exploration and development around the world. Members of the Electrum Group include Electrum Ltd., which holds one of the world's largest and most diversified exploration portfolios with a global portfolio of over 90 properties comprising over 1.8 million hectares in the Americas, Africa, Asia and Eastern Europe; Electrum Strategic Holdings LLC, which owns a strategic stake in Gabriel Resources Ltd., the owner of 80.5% of the Rosia Montana gold project in Romania; Electrum Strategic Resources LLC, which owns a substantial interest in NovaGold Resources Inc., which owns a 50% interest in the Donlin Creek gold deposit in Southwest Alaska and a 50% interest in the Galore Creek copper/gold/silver deposit in British Columbia; Electrum Strategic Exploration Ltd., which owns a strategic stake in Taung Gold Limited, a company with major interests in gold exploration and development projects in the Witwatersrand District of South Africa; Sunshine Silver Mines Corporation, the owner of the historic Sunshine Mine located in the Idaho Silver Valley as well as significant silver properties in Mexico; Electrum Strategic Acquisitions LLC, the owner of a significant interest in Sunward Resources Ltd., a company focused on the exploration of gold/copper porphyry projects in Colombia; and Electrum USA Ltd., headquartered in Denver, Colorado, which manages the Electrum Group's exploration and development activities.