MM: What is the significance of today’s announcement of the resource upgrade and what bearing will the results have on the Bankable Feasibility Study?

KS: The results of the resource estimate have, as we expected, improved the ‘solidity’ of the resource at Kiziltepe. We have successfully converted the previously Inferred resources at Banu and Derya in to the Indicated category. Separate to that, the extensive remodelling of the vein systems and the inclusion of several subsidiary veins provided a welcome additional boost to the global resource figure. The current resource estimate now forms an robust platform from which we can continue with our feasibility work, as we now have a significantly larger component of the resource in the Measured and Indicated categories, from which our Mineral Reserves may be established. In fact if you look at just the gold content of the resource, our Measured and Indicated component has increased by over 60% relative to the previous resource estimate. These elements underpin the potential economics of the project and demonstrate resource integrity. Our decision to use Wardrop for the new resource estimate (previously SRK) was, in part, to obtain a second independently constructed resource estimate (to verify or compare with the first). While this was initially to be reported according to NI 43-101 reporting guidelines it was decided that JORC would be more appropriate for the UK market and would enable a direct comparison with our previous resource estimate. The results of this process have been very positive and we can move forward in the knowledge that our resource (in earlier and later forms) has been independently verified by two separate international consulting firms.

MM: You also state that the High grade zones continue below modelled pit-bottom at Arzu South and Arzu North, and that new areas for potential resource growth have been identified. You must be very encouraged by this. What is the priority for increasing the resource here and elsewhere within the RR project area?

KS: That is correct. Higher grade blocks are evident immediately below pit-bottom in the eastern end of the Arzu North structure. Also in certain areas of the Arzu South vein system higher grade plunging shoots can be seen to continue beneath the pit-bottom at that location also. These are of course very encouraging signs, which suggest that some of these higher grade blocks could be captured by somewhat larger pits if the economics stack up. We were deliberately conservative in our open pit optimisation parameters in terms of gold and silver price. If we ran the models at increasingly higher prices we would see more and more of these high grade blocks captured by the pit shape. The final shapes and designs of the pits will be established during the course of our feasibility work and will better determine how much of these high grade zones may eventually be incorporated in what will become the Mineral Reserve.

In terms of new areas for potential resource growth, we have defined at least four new vein systems that could yield additional resources from potential satellite pits. These are the Arzu Far North, Aybor, Ceylan and Derya West veins. More drilling would need to be undertaken in these areas to better define the current resources established for these veins, but the fact that we have been able to include these in current Inferred resources is a good start. Secondly there are indications that there is underground potential along the Arzu structure. This is clear from the higher grade zones I described earlier, but also the possibility that Arzu North and South are connected beneath cap rocks. There is plenty of evidence to suggest that the structure continues beneath the cap rocks: minor geochemical anomalism in the cap rocks, silicification of the rocks along a NW trend and a strong and linear geophysical anomaly also along a NW trend that connects between Arzu South and Arzu North. We also now have confirmation from drilling of the Derya vein eastern extension that this vein continues beneath the cap rocks towards the potential buried Arzu structure. Whether this all indicates a deep vein system is unknown at present, but it is something that will need to be systematically tested in time. However, for the moment our focus is going to remain on the feasibility and EIA work as these are the critical hurdles for the project. Any exploration upside can be properly evaluated once we have placed Kiziltepe on the path to production and any decision on such future exploration will need to be made by the Zenith Mining board.

MM: What developments and news flow can Investors expect from the company going forward over the next 3 to 6 months?

KS: Firstly, and perhaps most importantly, we will be reporting on aspects of our feasibility study, where it is possible for us to do so. During the first quarter of next year we will have reached the pre-feasibility stage of our work and aspects of this may be reported at that time. There are also aspects of our Environmental Impact Assessement and permitting progress that may be announced. We will also be reporting on our various exploration initiatives across Turkey, which I hope will provide a flavour of how our exploration is progressing and give a sense of where our exploration upside may lie.

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