Pakrut Licensed Area

Location

The Pakrut Gold Project lies within the southern portion of the Tien Shan Fold Belt, a belt of folded rocks that extends from near the Aral Sea in Uzbekistan through the northern part of Tajikistan into China and then into Mongolia. The Tien-Shan Fold Belt contains the world's second largest known gold resources after the Witwatersrand in South Africa. Pakrut is located three hours by road northeast of the capital city of Tajikistan, Dushanbe.

Pakrut Area Exploration Licence

LLC Pakrut, a 100% wholly owned subsidiary of China Nonferrous Gold Limited (formerly Kryso Resources Corporation Limited), was granted an exploration and trial mining licence over the Pakrut Licence Area in April 2004, an exploration area extending over 6,300 hectares. This area comprises the Pakrut and Eastern Pakrut gold deposits as well as deposits and mineral occurrences at Rufigar, Sulfidnoye and Surmyanoye. The exploration and trial mining licence is valid until 1 April 2014 and is renewable.

Pakrut Licensed Area – Additional Targets

There are three additional mineralized systems within five kilometres of the main Pakrut gold deposit. These are the Eastern Pakrut gold deposit, the Sulfidnoye gold and silver prospect and the Rufigar prospect. Drilling has been carried out and is continuing at Eastern Pakrut and Rufigar. For more information on the Sulfidnoye and Rufigar prospects please see the Pakrut Satellite Prospects section of the website.

Geological Setting

A large number of world class mesothermal gold deposits are hosted within the Tien Shan Fold Belt. The Pakrut area is included in this province, as well as in the rare-metal-polymetallic Zeravshan-Hissar belt of mineral deposits and the Kugiturinscky gold belt of low-sulphide gold-quartz mineralization.

The rocks surrounding the Pakrut Licence Area are dominantly metamorphosed Palaeozoic marine sedimentary formations with subordinate Mesozoic sediments and intrusive rocks. An Upper Ordovician green schist horizon is the most important formation in the area, as it tends to have localised zones of hydrothermally altered, gold bearing rocks. This green schist unit is reported to be the eastern extension of the gold bearing formations of western Uzbekistan where sizable gold deposits including Muruntau, Daugystau and Zarmitan are located.