Manas Resources LLC

Manas Resources LLC holds a licence to explore for gold in Sultan Sary, Narynskaya Oblast, Kyrgyzstan.

In 2012, Legendary invested £100,000 into Kyrgyzstan based Manas Minerals LLC. Manas Minerals owned a coal licence in Kyrgyzstan. With the outlook for coal deteriorating significantly, Legendary began exploring ways of mitigating against this. This culminated in October 2015 when Legendary acquired a 5.5% stake and an option over an additional 4.45% stake in Manas Resources LLC, the holder of a licence to explore for gold in Sultan Sary, Narynskaya Oblast, Kyrgyzstan, in exchange for its interests in Manas Minerals.

Manas Resources’ licence area is located in the gold-rich Tien-Shan region of Kyrgyzstan and covers approximately 66 sq km. The southwest corner of the area covered by the licence, an area of approximately 2 sq km, borders on its southern side the Choloktor gold area which under the Soviet Classification system contains a P3 resource of 15 tonnes of gold. Choloktor in turn is bordered by Buchuk, an area which under the Soviet Classification system contains a C1 resource of 20 tonnes of gold and a P3 resource of 41 tonnes of gold. This area in turn borders the Altyntor area which under the Soviet Classification system contain a C1 and C2 resource of 7 tonnes of gold. About 5 tonnes of gold has historically been mined from Buchuk, which is currently being evaluated by another company. The structures in the southwest corner of the licence (Area 3) are similar to those in the gold containing areas of Choloktor, Buchuk and Altyntor, and it is believed that the same vein runs through all four areas.

A map of the licence area can be found here.

Exploration work was conducted in 3 prospective sub-areas within the licence area for an initial sampling phase in 2015. Area 3, located in the southwestern corner of the licence area and covers approximately 1.2 sq km, and is considered to be the most prospective part of the licence area, being located along the same WNW structural corridor, from the known deposits (outside the licence area) of Choloktor (3 km), Buchuk (5 km) and Altyntor (9 km). Area 3 is almost entirely covered by Quaternary sediments, and no detailed surveys were conducted in 2015. A reconnaissance survey identified some small boulders in stream beds and gullies. A boulder sample collected close to the southern border of the licence area assayed 36 g/t Au. A bedrock sample taken from about 1 km outside the licence area assayed 12 g/t Au. In both of these higher grade samples, the gold is associated with quartz and limonite. These results lend support to the interpretation that the mineralised Choloktor-Buchuk-Altyntor structure continues onto the licence area.

Area 2 is located in the eastern end of the licence area and covers approximately 12 sq km. In this area sampling consisted of approximately 2,500 soil samples (1,500 analysed) and 200 bedrock samples (103 analysed). The surveys to date have identified a number of lithochemical anomalies. This southern area is interpreted as a WNW trending structural corridor favourable for gold mineralisation. This is supported by the results of the bedrock sampling, with samples returning assays with values up to 4 g/t Au. Five samples taken over 1 km, have returned values of 0.5 g/t Au or higher. The gold mineralisation in this southern area tends to occur in quartz carbonate veinlets associated with copper sulphides.

Area 1 is located in the northwestern corner of the licence area and covers approximately 1.4 sq km. The distribution of bedrock in Area 1 is restricted, especially in the more prospective regions, covering less than 30% of the area. Sampling consisted of approximately 400 soil samples and 100 bedrock samples (52 analysed). Two of the bedrock samples returned gold values significantly above background concentrations.

Manas Resources has initiated a geophysical work programme to define better and delineate known and potential gold mineralisation in the licence area. The geophysics programme consists of ground magnetics, Induced Polarisation (IP) profiles and gamma spectrometry, and is focussing on the high priority subareas (Areas 3 and 2) identified previously. The geophysics programme is being carried out by a local geophysical contractor in Kyrgyzstan. The results of the geophysical surveys are expected sometime in 4Q2016. Results from the geophysical work, and additional field work will determine the nature and extent of further work.

Kyrgyzstan is a stable parliamentary democracy, strategically located, and with pro–mining policies. Mining development is at forefront of and essential for its economic development. It has several listed international mining companies operating within its borders.

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