🕐22.09.09 - 08:54 Uhr
PNG RNS 220909 Interim Results 2009
22nd September 2009
Interim Results for the Six Month Period to 30th June 2009
Key Points:
* To date good exploration success has been achieved by Persian
Gold in Iran:
- the Chah-e-Zard gold discovery is believed to be commercial
- Dalli could potentially be a small copper/gold mine
* Further progress and development has been frustrated by inaction
on behalf of the authorities
* Persian Gold is looking to examine other opportunities and
strategic directions
John Teeling Chairman of Persian Gold Commented:
"The geology of Iran remains very attractive.
Accessing the opportunity
in Iran was the strategy behind setting up Persian Gold.
Despite some
considerable success on the ground, we have found it difficult to
progress projects due to bureaucratic delays.
Persian Gold is committed to Iran.
We are examining other opportunities
available to best serve the Company and shareholders, while continuing
to address the problems of operating in Iran".
Iran is a beautiful country with outstanding geological potential.
The
logic in establishing Persian Gold in 2004 was to take advantage of the
opportunities.
The geopolitical situation facing Iran - sanctions,
Middle East politics, and lack of understanding - meant that few, if
any, Western mining companies would venture into the country.
The
founders of Persian Gold, Irish and Iranian, were experienced
international operators and had no political baggage.
This gave us a
major early-move advantage.
The strategy worked very well in the early years.
Persian Gold got
every help from the Iranian Embassy in Dublin and from the geological
and mining organisations in Iran.
Persian Gold established a top class
technical team in Iran.
We had two quick discoveries, both joint
ventures with local Iranians; Chah-e-Zard, a gold oxide resource, and
Dalli, a copper / gold porphyry.
Grass roots gold exploration at
Takestan obtained good first phase exploration results and then ran into
opposition when we wanted to move to the trenching / drilling phase.
But, our experience in the past eighteen months has been frustrating.
A
detailed application to the Ministry of Mines for a Discovery
Certificate on the Chah-e-Zard gold / silver discovery has lain dormant,
although it has passed through various committees for technical and
economic review.
No explanation has come from the authorities.
Under
the relevant Mining Law, the authorities must rule on our application.
Persian Gold staff have completed the necessary technical work prior to
lodging a Discovery Certificate application for the Dalli copper / gold
resource, but under the current circumstances, there is little point in
submitting the application.
Compounding the problem is the fact that
visas are no longer available from the Iranian Embassy in Dublin.
Again, no explanations are forthcoming.
Let me remind you of our logic in selecting Iran.
The country is very
big, stretching over 2,000 kilometres.
It is seriously underexplored
but thought to contain significant percentages of the worlds gold,
copper, zinc and other metals.
By bringing new thinking and new
technology to the country, and by recruiting top quality internal staff,
we hoped to make discoveries.
In looking for gold, we applied the
knowledge gained from discovering and developing gold mines in clay /
alunite / silica minerals in the Andes.
We employed satellite imagery
in seeking exploration sites and used new interpretation techniques to
evaluate findings.
It worked.
Our experience of gold mining in Africa
enabled us to model and evaluate the Chah-e-Zard deposit, where we
drilled over 40 holes to outline an oxide resource of at least 160,000
ounces of gold and 1 million ounces of silver.
We know how to build and
operate tank leach gold mines.
We believe Chah-e-Zard is commercial.
Our initial focus was on early stage gold exploration but we soon
realised that Iran could and should contain very large copper gold
porphyry deposits.
Our first target was Dalli.
This is a good and
valuable deposit, but it is not the goal, it is not big enough.
We
looked at others, including Shadan in the East, but we have not found a
big resource.
Applying state of the art analytical / evaluation
techniques added value to both resources.
Dalli could be viable as a
small gold / copper mine.
We had excellent cooperation in Iran at local and national level.
Individuals, state organisations, and even a bank, brought particular
projects.
We signed Memoranda of Understanding with a bank, a state
mining company and with some local mining groups.
For the past eighteen months, we persevered in our chosen strategy in
Iran, though unable to make any progress with the authorities.
We kept
our top quality geological team together, we continued to examine new
projects, and we pushed for answers to our application.
It is
unsatisfactory to report that we have made no progress and have received
no explanations.
The Way Forward
Facing reality, your board have taken the following steps:
1.
Continue to monitor opportunities in Iran;
2.
Cut costs as far as possible.
Unfortunately, some staff have
lost their jobs, while our two top managers have seen their remuneration
cut;
3.
In recent months, we have conducted preliminary investigations
into the mineral potential in Armenia, Azerbaijan, Kazakhstan and
Tajikistan.
We are now focusing on grass roots gold opportunities.
These countries have large Persian / Azari-Turkic speaking populations.
Our Iranian staff can work in these places;
4.
We have identified two specific minerals which we believe have
strong long term fundamentals.
The board is examining exploration
opportunities in these minerals.
Early developments are expected;
5.
The skills, expertise and contacts of directors and staff extend
into hydrocarbons.
For some time, we have been looking at opportunities
to partner with local Iranian groups who have obtained exploration
concessions.
Iranian oil operates on a different regime to minerals so
foreign investment is taking place.
To date, the returns offered make
financing difficult.
Outside of Iran, we have been offered and are examining exploration
projects in both gas and oil.
If we remain stalled in Iranian minerals,
then such projects provide alternatives.
The geology of Iran remains as attractive as ever.
We are striving to
find out why Persian Gold is not making progress with the authorities.
If we can identify the problems, we will fix them.
In the interim, we
must ensure that shareholders have opportunities.
This will lead to a
redirection of activities, at least in the short term.
John Teeling
Chairman
22nd September 2009
Persian Gold PLC
John Teeling, Chairman
+353 (0) 1 833 2833
FinnCap
Matthew Robinson
+44 (0) 20 7600 1658
College Hill
Nick Elwes
+44 (0) 20 7457 2020
To view the report in full, please log onto www.persiangoldplc.com