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Kola Mining Corp.
Kola Mining Corp Acquires Bogunay Gold Project in Russia
April 13, 2009
Vancouver, British Columbia, Kola Mining Corp. (TSXV: KM, Frankfurt: C8M, “Kola” or the “Company”) is pleased to announce that it has signed anagreement to acquire a Russian company, OOO Artel Staratelei Angarskaya Proizvodstvennaya Kompania (“OOO”), that owns a 100% interest in the Bogunay Gold Property in Krasnoyarsk Territory, South Siberia,Russia (the “Property”). Under the terms of the agreement Kola will pay the vendor approximately 24,000,000 Russian Rubles (approximately US$700,000). OOO also has an outstanding loan with a third party for US$1,100,000, of which $550,000 must be repaid by January 2010 and the balance by October 2010. Kola will also pay a finder’s fee of US$25,000 to a third party.
Based on non-compliant (and therefore not disclosable) Russian resource estimates and other historic information the Company has estimated a potential target ranging in tonnage from 5,800,000 to 9,400,000 tonnes, at grades ranging from 2 to 10 g/t Au, for total contained gold ranging from 22.2 tonnes to 40.1 tonnes or 648,000 ounces to 1,171,000 ounces. The area includes the Bogunay mine area, old mine tailings and other exploration targets within the property boundary.
Investors are cautioned that the potential quantity and grade is conceptual in nature and that there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the confirmation or discovery of a mineral resource. In addition, Kola cautions investors that the Soviet classified resources are not NI 43-101 compliant and that CIMM and JORC resource categories do not directly conform to, nor recognize the Soviet A, B, C1, P1 and P2 resource categories. A Qualified Person as defined by NI 43-101 has not done sufficient work to classify the estimates as current mineral resources and the estimates should not be relied upon. Kola does not consider the estimates to be current mineral resources, but it does consider the estimates to be a significant indication of the overall mineral potential, as discussed above.
The Property is located 196 km from Krasnoyarsk, center of KrasnoyarskTerritory, South Siberia, Russia. It is accessed via graded gravel road (12 km) and is 16 km to the nearest railway station. The project has excellent access to power, water and a qualified local workforce.
The Bogunay mine was in operation from 1936 to 1951 and is reported to have run at an average grade of 8.5 g/t Au. The area had been closed due to its proximity to a Soviet strategically sensitive locationuntil 2002, at which time a license to conduct exploration and subsequent production of gold was issued. It is in effect until 2026. Since the issuance of the license, more than US$2 million has been invested in exploration of the licenses. This work has included drilling, ground and airborne geophysics, trenching and chip sampling, environmental and as well as several other studies. This work has led to the estimation of potential goldsummarized above.
The gold at Bogunay occurs in gold rich quartz veins within shear zones or as gold sulphide mineralization in altered gneisses and schists. They may also be rich in copper and silver. The deposit was previously mined both from underground and by open pit. The Krasnoyanskaya zone is located along the south flank of the Bogunay deposit. The gold here occurs in stockworks of sulphide mineralization, which may also contain copper and silver. The true thickness of the mineralized zone ranges from 7 to 26 meters. It has been well delineated with a series of trenches, adits, shafts and diamond drilling.
Kola plans to process old mine tailings utilizing a local mill. It is also considering using this mill along with contract miners to start early productionfrom the old mine which could generate near term cash flow for the Company.
Mikhail Yuryev, the Chairman of the Board of Kola states, “Kola Mining Corp. is continuing to develop and evaluate gold and precious metals deposits among Russia’s tremendous untapped resources. There are a vast number of exceptional assets available to capable companies. The Kola Mining management team has extensive knowledge and experience mining in Russia and can act opportunistically in these current economic conditions.”
Brian McEwen, P.Geol., is a “Qualified Person” for the purposes of NI 43-101 and he has approved the technical information presented in this news release.
About Kola Mining Corp.
Kola Mining Corp. is a Vancouver, Canada based mineral exploration Company, with its head office in Vancouver, Canada, and exploration offices in Apatity, Russia.
The Company is engaged in the identification, acquisition, exploration and development of precious and base mineral properties in Russia, Eastern Europe and Central Asia. To find out more about Kola Mining Corp., please visit the company website at
On behalf of the Board of Directors of
KOLA MINING CORP.
"Sergei Dubovik"
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Sergei Dubovik
President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Certain information in this release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at
For further information please contact:
Kola Mining Corp.
604.694.1600