SOURCE: Zoloto Resources Ltd.

November 19, 2007 08:00 ET

Zoloto Resources Files Technical Report on Kenkeren Project

VANCOUVER, BC--(Marketwire - November 19, 2007) - Zoloto Resources Ltd. ("Zoloto" or the "Company") (TSX-V: ZR) is pleased to provide further details on the Kenkeren license; the Company's third exploration project in Chukotka, Russia. A National Instrument 43-101 ("NI43-101") independent technical report, prepared by William J. Crowl, R.G., Vice President of Gustavson Associates, LLC, an independent "Qualified Person" (as defined by NI43-101), dated November 11, 2007 and entitled "Technical Report on the Kenkeren Gold Project, Chukotka Autonomous Okrug, Russia" (the "Technical Report") is filed on SEDAR ( The report principally reviews the historic exploration by previous Russian owners of the property. Highlights from the report are detailed at the bottom of this release.

Zoloto has received its exploration permit for Kenkeren. A 20 man camp is now complete, site preparation is underway, and some trenching has been undertaken this year with assays pending. Zoloto's main exploration efforts at Kenkeren will start in the spring of 2008. One core rig is currently on site and is currently being winterized, while a second rig is en route to the site.

The cost of the Kenkeren license was approximately US$1.5m, which came as a package with four alluvial gold properties, located some 75km to 186km from Zoloto's existing Elvenei property. These alluvial gold properties have been worked historically by previous Russian owners. Over this winter, Zoloto will deliver mining equipment and two small gravity plants to the sites. Following set-up over the summer, Zoloto intends to start mining at two of the properties, Koralveem and Levy-Koralveem in the second half of 2008.

Bob Maddigan, Director of Zoloto Resources, comments, "At Kenkeren, we are still working through a wealth of data from previous Russian exploration activity. Historic exploration has outlined a significant gold potential particularly at the Skvoznoy zone, which will be the principal target at Kenkeren for next year."

"The planned gold production from the Chukotka alluvials will be relatively small scale and is relatively unimportant within the context of our core exploration portfolio. However, they will put the Company on an operating footing, which will be valuable in terms of the Company's visibility within Russia, and Chukotka specifically.



The geology of the Kenkeren license area is complex, characterized by widespread low-angle reverse faults (thrusts) and the occurrence of a number of distinct sedimentary units and Mesozoic to Cenozoic intrusive and extrusive rocks. The Kenkeren gold prospects display characteristics consistent with low sulphidation gold systems. Gold is predominantly associated with quartz, with minor amounts of pyrite, and arsenopyrite in veins, veinlets and stockworks, often in close relationships to thrust faults.

The Kenkeren license area has seen considerable exploration activity since 1955 by several Russian expeditions. A number of campaigns have employed diamond drilling, cable-tool drilling, trenching, pitting and soil sampling. The application of geophysical methods has yielded contour maps of tectonically-weakened sites and sites of hydrothermally altered formations which contain all known occurrences of gold mineralization.

As detailed on Zoloto's website ( and in the Technical Report, previous lithochemical sampling has identified numerous gold targets across the license. Several areas, including the KAR, Northern and East Nutekin zones, will require varying levels of follow-up, but the most prospective of these targets is the Skvoznoy zone. This is where Zoloto will initially focus its exploration efforts.

The Skvoznoy Zone

The gold mineralization in the Skvoznoy zone occurs as free gold and gold in sulfides in quartz veins cutting Triassic Nutekin strata, as well as Pliocene dolerite dikes and Oligocene extrusive-vent and sub-volcanic rocks. The quartz veins occur in a north-northeast striking zone of intense fracturing and crushing in the aleurolites and sandstones. These strongly fractured and crushed zones are sub-parallel to the thrust faults recognized in the area. The zone is 50 - 60m wide, dipping 45° to the northwest.

A significant part of the most prospective mineralization at Skvoznoy is covered by glacial debris in the western part of the prospect. A few trenches have exposed veins containing anomalous gold values, but the area remains largely untested.

In the Technical Report on Kenkeren William J. Crowl, R.G. states, "The most prospective area at Skvoznoy has been tested by trenching and widespread clearing of alluvial cover exposing an area of dolerite dikes intruding Nutekin sediments. The dolerite dikes, as well as the enclosing sediments, are cut by quartz veins containing gold. Historically, seven core holes have been drilled, with depths ranging from 49.8 to 216.5m. The highest grade gold in the drilling is reportedly 17.23 g/t over the interval of 10-15.6m in one hole and 7 g/t over 2.7m in another hole. The Russian investigators state that the drilling has insufficiently tested the occurrence. Grab samples in the area have returned gold values ranging from 2.4 g/t to as much as 1277 g/t."

Exploration Potential

Total Russian-estimated predictive resources (exploration potential) of gold on Kenkeren field as a result of the 2000-2004 exploration programs are approximately 105 t (3.4Moz), of which 70 t (2.3Moz) are within the limits of the ore-bearing sites Skvoznoy, Northern, Kar, Upper-Nutymokinskiy in Russian category P2, and 35 t in other territories in Russian category P3. These resources have passed expert scrutiny by the Russian Central R&D Geological Institute for Nonferrous and Noble Metals (CNIGRI) without change. The resource estimates are non-historical (estimated post-2001), are hypothetical and conceptual in nature, estimated using techniques that are non-NI43-101 compliant and are mentioned here as merely being indicative of the potential of the area for discovery of gold mineral resources. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

About Zoloto Resources

Zoloto Resources is a gold exploration company whose primary focus is to become a mid-tier gold producer through the advancement of its gold exploration properties in the Russian Federation. In addition, Zoloto's management will continue to evaluate acquisition opportunities within the Russian Federation. Zoloto's philosophy is to unlock shareholder value in a socially and environmentally responsible manner.

Certain information in this news release contains forward-looking statements that are based on the Company's current expectations and estimates that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the Company's plans with respect to the exploration and development of the Kenkeren property). Forward-looking statements are frequently characterized by words such as "plan," "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding potential mineralization and resources, exploration results and future plans and objectives of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Factors that could cause such differences include changes in world gold markets and equity markets, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting drilling results and other ecological data, delays in the development of projects and the other risks involved in the gold exploration and development industry. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For more information please contact:
    Robert Maddigan
    Phone: (604) 608 0223
    Fax: (604) 608 0344