Kola Mining Corporation

Kola Mining Corporation

October 06, 2009 06:00 ET

Kola Mining Corporation: Bogunay Gold Prospect Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2009) - Kola Mining Corporation ("Kola Mining, the Company") (TSX VENTURE:KM)(FRANKFURT:C8M) is pleased to announce that it has completed a Due Diligence study (TEO Konditsiy) at the Bogunay Gold Prospect. The Company holds a 100% interest in the Bogunay Gold Property in Krasnoyarsk Territory, South Siberia, Russia. Since April, when the Company acquired its interest in the Bogunay Gold Prospect, the Company has been working on baseline geological works. The objective of the work program was to meet the work requirements of the license agreement.

Mr. Mikhail Yuryev, Chairman of the Board, commented, "We are pleased with the ongoing progress at Bogunay and that we completed necessary work to meet the requirements of the license agreement. This allows us to continue exploration work on the other target areas of the Bogunay gold Prospect such as the Bogunay mine area; the old mine tailings; the Krasnoyarsk mineralized zone; the Ivanovskaya zone; and other exploration targets within the property boundary."

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.

Kola Mining has hired a local geological exploration firm to prepare an exploration program and budget, respectively for ongoing work at the Bogunay Prospect. As well, APEX Geoscience Ltd. has been retained to complete a National Instrument 43-101 compliant report specific to the Bogunay Gold Prospect.

Kola Mining's disclosure of a technical or scientific nature in this news release was prepared under the supervision of Dean Besserer, P.Geol., of APEX Geoscience Ltd., Edmonton, Alberta, who is a Qualified Person under the definition set out in National Instrument 43-101. APEX Geoscience Ltd. is an independent Canadian geological consulting firm with offices in both Canada and Australia.


Kola Mining is continuing with its review of acquisition opportunities in Russia and has commenced detailed due diligence on a significant developed tin property located in Russia. The property is an advanced near term production opportunity and has had significant expenditures in exploration and development over the past several years. Negotiations with the vendors have commenced but at this time no agreement has been concluded.

As part of its due diligence, Kola has retained Mr. Dean Besserer of APEX Geoscience Ltd. to complete a comprehensive National Instrument 43-101 compliant report specific to the tin property under negotiation, who has already visited the Bogunay Gold Prospect, as referenced above.

For further information on Kola Mining Corp., please visit the company website at www.kolamining.com.

On behalf of the Board of Directors of KOLA MINING CORP.

Victor Tskhovrebov, President & C.E.O.

Forward Looking Statements

This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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