History

The mineral potential of the Chelopech area was first recognized in the mid 19th Century and the outcrop area worked prior to the start of the Second World War. The Chelopech deposit was re-discovered in 1953, following drilling by Sofia Geological Exploration. Underground development began in late 1953 to gain bulk samples and to further evaluate the deposits.

        2003

• Carried out 30,000 metres of drilling to confirm the historic drill data to generate a NI 43-101 compliant mineral resource.

        2005

• Completed the North Chelopech surface exploration drill program.

        2007

• Introduction of an accelerated exploration program to increase reserves around the existing ore bodies.

        2008

• Development of an updated structural and geological model, the use of downhole electromagnetic surveys, clay mineral identification by analystical spectural procedures and standard multi-element analysis and underground mapping.
• Developed exploration drives on both sides of the mine with the dual purpose of drilling the Chelopech Deeps Program and grade control.
• Commenced the Deeps Exploration Program.

        2009 & 2010

• An intensive underground exploration diamond drilling program of 27 kilometres focused on converting Blocks 145 and 147 into Measured and Indicated Resources.
• Exploration of Chelopech North, Chelopech South West and Chelopech Western "Deeps" zones underneath Blocks 103, 150 and 151.
• These areas were systematically defined through geological review and identified as having the highest potential for delivering reserves to the life of mine plan.
• The result of this exploration program was a new small economic discovery in the Western Deeps, defined in the hanging wall proximal to Block 150 where drilling continues to determine the continuity of mineralization and conversion of this discovery into reserves.
• On completion of Block 147, where multiple mineralized zones were intersected, mining was commenced to extend existing development in order to get a better position to drill Targets 181 and 182.
• The evaluation of the Central Deeps program underneath Blocks 16, 18 and 19 has indicated that economic grades have been exhausted at depth confirming the absence of additional drill targets.
  

        2011

• Exploration will continue to delineate the podiform nature of Block 145 and determine the significance of the mineralized zone in the hanging wall of Block 150.
• Drilling at Chelopech North will continue throughout the year for the discovery of lower tonnes and higher grade gold deposits.
• Drilling at Chelopech South West will continue during the year and holes will be prepared for further downhole geophysics.
• Additional development for access to Targets 181 and 182 will continue with drilling planned to commence in the second quarter of 2011.