Assarel-Medet JSC Mining and Processing Complex (www.asarel.com/en/Default.aspx) is the largest Bulgarian mining company, which annually production of copper ore in 2007 was about 11,000,000 ton and produces 180,000ton of copper concentrate.
In accordance with contract signed July, 2008 with Assarel-Medet JSC implemented the consulting work "Review of the Copper and Gold Deposits and Ore Occurrences of Georgia".
Scope of the Project:

• Expert assessment of the territory of Georgia aiming at identification of the perspective exploration areas and/or deposits of copper and gold applying the selection criteria of metal content: above 1% Cu and 1g/t Au and resources/reserves above 200,000 t Cu and 10 t Au.

Scope of Work:

• Review of the legislative framework of Georgia concerning mineral resources, license, concession, developments and exploitation of mineral deposits, foreign investments and economic environment;
• Overview listed in the state balance of Cu and Au deposits/ore occurrences of Georgia and brief information about the main Cu/Au mining companies operating in Georgia;
• Data on potentially attractive Cu and Au deposits/ore occurrences in the following areas of Georgia: Ajara-Trialeti, Svaneti, Racha and Guria.

Data of the Cu and Au deposits/ore occurrences shell be in conformity with the following Technical Assignment:

General Information:

• Location - coordinates; satellite pictures; maps in scale not smaller than 1:50,000. Geographic description - nearest settlements and other objects of interest; distance of the air and of the road; proximity to territories of special regulation: reserves and natural parks, resorts etc.;
• Topology, hydrology and climatic conditions;
• Available infrastructure: roads and railways; power transmission lines and power substations; water facilities: water storage reservoirs, pumping stations, irrigation and water-supply systems; propriety and status issues: private, municipal and state property; agricultural land, forests, buildings etc.; possessing potential difficulties for project development.

Geological summary of the deposit area:

• Position in relation to regional macrostructures: geodinamic and metallogenic;
• Litho-tectonic unit;
• Tectonic macro-structures: plicative and disjunctive;
• Wall-rock alterations, ore showings, mineralization and other indications of ore forming processes in the area.

Geological structure of the deposit:

• Wall-rock and wall-rock alterations;
• Tectonic structure of the deposit;
• Ore genetic model;
• Shape and position of the ore bodies, genetic types of ores;
• Ore fluid transmitting, hosting and resisting structures;
• Size and homogeneity of the ores;
• Mineral and chemical composition of the ore.

Methodology and amount of the geological exploration works and main results:

• Geodesic works;
• Geophysical exploration works;
• Exploration drilling: position, geophysical logs and inclinometric studies;
• Exploration trenches and mining works;
• Sampling;
• Laboratory analytical tests, internal and external quality control (methodology only);
• Technological tests (methodology only).

Data on the quality characteristics of the material:

• Laboratory analytical tests results: mineralogy, chemical composition; physical-mechanical properties;
• Technological tests results.

Hydro-geological data about the deposit area:

• Aquifers and water resistant structures;
• Water abundance: seasonal drill pumping (minimal and maximal values).

Mining data about the deposit area:

• Physical-mechanical indexes of the rocks;
• Fault network and fault density.

Data about reserves calculation:

• Pay limits and argumentation of the pay limits;
• Block division and argumentation of the methodology;
• Methods of reserves calculation;
• Calculation reserves/resources.

Available graphic enclosures:

• List of maps; geological profiles; drill logs; block profiles.

Positions of the USSR national reserves commission and positions of the evaluating experts.
Status in relations to availability of license or concession regime of the deposit/ore formation including information about the license holder: name, contact information, eventual wiliness/readiness for co-operation.

The results of consulting activities were reviewed and approved by the customer. Acceptance certificate was signed in November 2008.