Geological interpretation and modelling of re-logged drill core has defined a new target area known as the SE Breccia Pipe Zone located between and to the southeast of Blocks 10 and 103. The SE Breccia Pipe Zone is approximately 650-700 metres in length, 100-150 metres in width and is separated from the main Chelopech diatreme by a 250-600 metre screen of coherent diorite (at the 400 level). The target area was defined using the new geological model and alteration and metal zoning patterns around Chelopech suggest the system is still open and untested below the Chelopech thrust in the area of the SE Breccia Pipe Zone. Drilling to test the SE breccia with underground and surface drill holes is expected to start in September 2016.

Also in 2016, two diamond drill holes were drilled at the Sharlo Dere prospect located approximately 900 metres east of the Central ore blocks. Both holes intersected intervals with clasts and blocks of mineralization in a sedimentary breccia that is interpreted to overlie the intrusive complex. One of the holes intersected a zone within the breccia that averages 0.31% copper and 1.23 g/t gold over 35 metres from a down hole depth of 616 metres (400 metres from surface) including 7.0 metres averaging 0.73% copper and 2.13 g/t gold from 621 metres. It is not known if the mineralized clasts at Sharlo Dere are derived from the upper parts of known ore blocks at Chelopech or were sourced from elsewhere.

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