KARABULAK PROPERTY

Much of the work to date on the Bulakashu property has focussed on the Karabulak Gold Prospect. The prospect is comprised of a linear, gold bearing quartz stockwork exposed along the southern flank of a WSW trending ridge. The stockwork zone appears to be parallel to the trend of the ridge and is bisected by a narrow north-south river valley. Within the river valley, immediately down drainage from the Karabulak zone is a large independent placer operation (the Karabulak Placer) which is mined on a seasonal basis. Kola does not have any interest in the placer operations.

Trenching and continuous chip sampling completed by Upper Susamir Party from 1960 to 1963 yielded the following significant intervals from Karabulak;

During the Soviet era one diamond drill hole was drilled and an adit with crosscuts was driven to test high-grade gold mineralization within the quartz stockwork veining encountered in trenches on surface. Neither the drill hole or the underground workings intersected the downward continuation of mineralization encountered at surface.

In 2004, the Bulakashu Mining Company completed four diamond drill holes. The original trenched showing is locate along the south face of a ridge and all four holes were drilled at shallow to horizontal inclines from the south face. Alteration and mineralization was intersected over significant widths well past the vertical downward projection of the surface showing. This would suggest the mineralized zone has a very shallow dip to the north, similar to the dip of the hosting thrusted stratigraphy and possibly controlled by thrust faulting within the host rock sequence. The shallow dip would also help to explain why the earlier Russian drilling and underground development failed to intersect the mineralized zone.

Results from the four drill holes recently completed by Bulakashu Mining Company are as follows;

Due to the apparent shallow dip of the mineralized zone, some of the holes may not have intersected or completely penetrated the high-grade core of the zone exposed on surface. In addition to the high-grade gold mineralization encountered at surface and in some of the drill holes, there is also evidence of a broad zone or envelope of lower grade gold mineralization. Further drilling is planned on the northern slope in order to intersect the zone perpendicular to the dip of the mineralization.

Exploration Potential

Most of the major known gold occurrences are found in the lower elevation southern portion of the property. The exception being the Altyntash gold prospect that is located in the northern part of the license. Historic sampling of all of these prospects has yielded grades and widths of gold mineralization of economic interest. The proximity of the Karakol fault to the showings on the Bulakashu property provides deep structural control and a very good plumbing system for mineralizing fluids.

No serious evaluation has been made of any of the copper-gold porphyry systems on the property. Some of these systems are very large and have significant gold contents ranging from 0.2 to 0.58 g/t along with copper contents ranging from 0.2 to 0.25% Cu in surface samples. These deposits certainly merit a very careful evaluation. Most of the porphyry deposits in the Kyrgyz-Kungey belt have copper grades ranging from 0.4 to 0.6%.

In addition to the known prospects, extensive geochemical surveys were conducted identifying several large gold geochemical anomalies on the property that need further evaluation. Kola will undertake a detailed compilation of the historic data this winter, to identify significant new gold and copper targets.

Douglas Turnbull, P. Geo., a qualified person for the purposes of NI 43-101 was responsible for the preparation of the technical information disclosed in this news relea/

Photo Gallery - Karabulak

Click to enlarge each photo

Access road to Karabulak Valley, placer mine, and prospect. Looking eastward toward highway M39 (not seen in photo).	Karabulak field camp and placer mine in the background with the Karabulak Au prospect in the foreground. The dump is at adit 2 and the trenches cut the mineralized zone at the Karabulak prospect.
Collar of drill hole DDH 04-03 in volcaniclastic sandstone below the Karabulak thrust fault. The hole is drilled horizontally through the thrust and into the mineralized zone lying above the thrust.	Collar of DDH 04-02. The hole is collared in mylonite and gouge of the Karabulak thrust zone and drilled horizontally into the mineralized zone lying above the thrust.
Quartz stockworks with very fine pyrite cutting greenstone in the Karabulak mineralized zone.	Karabulak field camp and placer mine in the background with the Karabulak Au prospect in the foreground marked by the trenches
Quartz stockworks with very fine pyrite in greenstones at the Karabulak prospect.	Outcrop of the Karabulak mineralized zone with the Soviet era adit that is driven into the lower plate of the Karabulak thrust. The upper plate forms the roof of the adit. The trenches are in the mineralized zone.
Core from DDH 04-02 interval at 135 m showing stockworks in greenstone.	The ridge with the trenches is the outcrop of the main mineralized zone of the Karabulak prospect.
The prominent ridge is the Karabulak mineralized zone. The adit is driven into the lower plate of the Karabulak thrust with the thrust and upper plate forms the roof of the adit.	Karabulak prospect with the drill on site 02-04. The rough outcrops are the mineralized greenstones.
Nuggets from the Karabulak placer mine. The largest nugget weighs 17 grams.	Karabulak placer mine operated by Marsa Gold Co.
Barren white quartz vein cutting greenstone. The smaller stockworks veins with fine pyrite carry the gold mineralization.