Georgian Mining Appoint New Chairman And Chief Executive

LONDON (Alliance News) - Georgian Mining Corp, a gold and copper miner, announced Wednesday the appointment of Neil O'Brien as non-executive chairman and Michael Struthers has been appointed chief executive officer with immediate effect.

Struthers - currently chief operating officer at Georgian - has been working in operational mining for over 37 years. He replaces Greg Kuenzel, who has been appointed finance director of the company.

O'Brien - previously a non-executive director - has over 30 years of industry experience, including 15 years in technical and management roles with Teck Cominco and 13 years of executive management experience with Lundin Mining.

The decision comes on the back of Georgian Mining's recent agreement with its partner Caucasian Mining Group.

In addition, the copper-gold miner's subsidiary Georgian Copper & Gold JSC has entered a memorandum of understanding with RMG Gold LLC, sister firm of Caucasian Mining, for the mining and processing of ore from the Kvemo Bolnisi East target in Georgia.

The work programme will focus on building a mining operation at Kvemo Bolnisi East Gold Zone 2, and the drill programme will further expand the copper-gold sulphides resources which are currently open and move into the wider Kvemo Bolnisi area.

Infill drilling to define resources is expected to start in April and take two months to complete. Alongside drilling, bulk sampling, metallurgical testwork, site investigations and environmental studies will be carried out at Gold Zone 2.

Both Georgian Copper & Gold and RMG Gold will start processes to obtain environmental and construction permits for extraction.

The memorandum of understanding is for the mining, hauling and processing of ore from Kvemo Bolnisi East at one of RMG's processing plants at the Madneuli and Sakdrisi mines nearby.

Struthers said: "This is a pivotal period for the Company as we look to realise the value of our first resource development project at KBE, whilst building up a robust pipeline of other projects with our JV partner. In addition to the oxides at KBE we believe the sulphide resources below represent significant value, and we will maintain our focus on further defining this potential along with continued testing of the other well-defined epithermal gold-copper targets across the JV licence area."

"I originally joined GEO as Chief Operating Officer on the strength of the epithermal geological model, the mineral potential waiting to be developed on the JV license and my confidence in the GEO team", Struthers added. "As CEO, I look forward to completing this work and establishing KB and the surrounding areas as yet another world class asset on the prolific Tethyan Belt."

O'Brien added: "I would like to take this opportunity to thank Greg for the significant contributions he has made as Managing Director to GEO over the years, including the Company's entry into Georgia through the current Bolnisi JV Project which has the potential to be a company-making asset."

"With Mike now as CEO," O'Brien added, "together with the considerable experience of board members Peter Damouni and Laurie Mutch, I believe we have the ideal core team in place to first realise the value of KBE in collaboration with our JV partner, and then grasp the potential for a significant new discovery within the large JV licence area, and in the process generate significant value for GEO's shareholders."

Shares in Georgian Mining are down 1.2% at 9.14 pence each Wednesday afternoon.