Persian Gold pleased with progress in Iran

Persian Gold (AIM: PNG) announced it has received Foreign Investor approval in Iran under the Foreign Investment Protection legislation, for over US$1.5 million of investment made in the years 2005 - 2007. The approval is a state guarantee on a foreign company’s freedom to repatriate profits.

Persian Gold noted that the balance of its investment is currently being examined by the Iranian commission, and it expects approval when necessary documents have been supplied.

“I am delighted to report progress in Iran, where the state has approved our Foreign Investor status, thus guaranteeing profit repatriation,” Persian Gold chairman John Teeling said. “I hope that this leads to rapid approval on one or both of our Discovery Certificate applications.  Once we receive approval, we will move to feasibility studies on each project,”

Persian Gold has two outstanding applications for Discovery Certificates - one on the Chah-e-Zard gold deposit in Central Iran and the other on the Dalli copper/gold porphyry deposit near Isfahan, with both projects optioned from local Iranian licence holders. 

"These projects have been on hold for some time awaiting state approval to proceed.  We are hopeful that progress will be made on one or both projects in the coming weeks’ Persian Gold stated.

The company noted that Chah-e-Zard has an indicated resource of 160,000 ounces of gold and 1 million ounces of silver contained in near surface oxide ore, and Dalli has the possibility of becoming a small polymetallic producer. 

According to Persian Gold, Iran possesses some of the largest natural resource deposits in the world particularly in the Tethyan belt, which stretches from Turkey over Iran to Pakistan, and has been largely unexplored in the last 30 years.

“Outside of Iran progress is also being made.  We now have exploration ground in Bolivia, with mineral opportunities similar to those in Iran ... In West Africa, we are part of a consortium finalising an agreement on an oil/gas exploration block", Teeling added.

While awaiting approvals in Iran, the company has looked at projects elsewhere. In Bolivia, it has targeted lithium, due to the vast reserves in Lake Uyuni. The company has been awaiting development on the lithium proposal, and it has also identified two polymetallic opportunities in the Potosi region of southern Bolivia. 

Now, Persian Gold has signed Memoranda of Understanding on both polymetallic properties.  The company said the agreements provide for primary and secondary exploration, and the Iranian geological team is conducting the early investigations.

The comapny has been negotiating an oil exploration concession in West Africa for the past two years. The concession is located close to recent large discoveries, Persian Gold stated.  The concession has now been awarded to a consortium, and Persian Gold intends to hold a 30% interest in the consortium.  The company said it will provide further details once its participation has been finalised.