Kazax Announces Initial Resource Estimate of Lomonosovsky

Kazax Announces Initial Resource Estimate of Lomonosovsky Iron
Magnetite Project 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/14/13 -- Kazax
Minerals Inc. (TSX VENTURE:KZX) -  
Measured and Indicated Resources - 333.5 Million Tonnes Grading 36.6%
Total Iron 
Inferred Resources - 108.7 Million Tonnes Grading 34.8% Total Iron 
The mineralisation remains open at depth and along the lateral
extents 
Kazax Minerals Inc. ("Kazax" or the "Company") is pleased to announce
that its independent Qualified Person (the "QP"), Mr. Andrew Vigar of
Mining Associates (MA) based in Hong Kong, has issued a National
Instrument 43-101 compliant technical report on the Company's
Lomonosovsky Project entitled "Independent Technical Report on the
Lomonosovsky Iron Project, Republic of Kazakhstan" (the "Report"). 
A full copy of the report is available under the Company's profile at
www.sedar.com and on and Kazax's website; the highlights of the
report are; 
The Report provides a resource estimate for the Lomonosovsky Project
as at December 2012 stands as outlined below, above a cut-off grade
of 20% Fe: 


 
----------------------------------------------------------------------------
Mineral Resource Estimate for Combined Lomonosovsky, December 2012, cut-off 
20% Fe                                                                      
----------------------------------------------------------------------------
Class                       M Tonnes      Fe %       P %       S %     FeM %
----------------------------------------------------------------------------
Measured                         7.6      29.8       0.5       3.3      19.7
----------------------------------------------------------------------------
Indicated                      325.9     36.76       0.2       3.5      27.8
----------------------------------------------------------------------------
Measured & Indicated           333.5      36.6       0.2       3.5      27.6
----------------------------------------------------------------------------
Inferred                       108.7      34.8       0.3       4.5      25.9
----------------------------------------------------------------------------

 
This is comparable to the 1984 historical estimate, which was
classified and certified under the Kazakhstan classification system
at the time as C1 of 250MT, (CIM equivalent Measured and Indicated)
and C2 of 82MT, (CIM equivalent Inferred), with a 20% cut off grade
and an average Fe of 34.2% (IMC Montan 2010). The new estimate
represents a tonnage increase of 33.5%, Measured and Indicated and
32.5%, Inferred. 
The Lomonosovsky Iron Project is located in the northwest corner of
the Republic of Kazakhstan in the Kostanay Region, 618km northwest of
the country's capital of Astana and 50 west-southwest of the regional
capital of Kostanay. The Project is located close to the town of
Rudnyi and existing significant iron mining-processing operations.
The area has considerable industrial infrastructure. 
The Lomonosovsky Project has been subject to various geophysical and
drilling surveys from 1951 through to 1984 during, which time several
mineral resource estimates were conducted. 
Some 412 diamond drill holes for a total meterage drilled of 131,441m
were recorded in the database for the Contract area prior to the
current drilling, of which 190 drill holes were angled holes. 
A further twenty two (22) drill holes have been completed in 2012 for
a total of 9,049m, selected and supervised by MA and assayed by Kazax
to validate the historical drilling and for this resource estimate. 
It is MA's opinion that the 1984 historical mineral resource
estimates have been largely verified by the new drilling and
estimates and are quoted to here to provide context only. 
The mineralisation domains were defined by 3D wireframes using drill
assay data and geology logs and grades and mineralisation percentages
estimated by Ordinary Kriging into blocks 20x20x10m in size. 
The Report concludes that the Lomonosovsky Project contains
significant magnetite iron mineralisation in 2 deposits comprised of
5 adjacent domains which have similar geological settings to the
nearby operating magnetite iron ore open pit and underground mines in
the Rudnyi region. 
Historical work to date has outlined skarn iron mineralisation at the
NW Deposit and the Central Deposit beneath 100m of overburden and
extending to 1600m depth in the NW Deposit, and some 900m at Central.
The latest round of drilling consisting of twenty two (22) drill
holes totalling 9,049m has allowed for confirmation of the historical
drilling and for the deposit to be better understood and extended in
area leading to this resource estimate but still remains open at
depth and in the poorly drilled and structurally complex region
between the NW and Central deposits. 
While there have been a number of metallurgical programs through the
history of the project, further metallurgical testing will be
required regardless of the historical metallurgical results. MA notes
the presence of significant hematite as well as magnetite at several
locations and this will need to be taken into account in the plant
design. A metallurgical program is currently being undertaken by
Kazax with results expected in 2013 Q2. 
MA notes in the Report that the Lomonosovsky Project has a very
favourable location due to its proximity to transportation routes,
and sources of water, gas, and power supply which have been
established with the regional mining complex based in Rudnyi. This
may allow a reduction in capital expenditure and may reduce the cost
of production if the project proceeds to development through the use
of shared infrastructure. 
The QP makes the following observations and conclusions regarding the
Lomonosovsky Project in the Report: 


 
--  Significant skarn type iron mineralization exists at the Lomonosovsky
    Project. 
--  The Lomonosovsky Project has a very favourable location due to its
    proximity to transportation routes and infrastructure. 
--  The historical drill-holes have been validated by a current drilling
    program and close examination of the statistics between old and current
    drilling has deemed that the historical holes are suitable to be
    included in this resource estimate. 
--  The techniques applied in the sampling, logging and storing of core are
    deemed appropriate QA/QC procedures and standards. 
--  The ore deposit remains open at depth and along the lateral extents in
    certain areas as well as being under-drilled in the mid portion between
    the NW and Central deposits. 
--  Selective sampling within mineralized zones has required a weighting
    factor to be applied to the estimation model; future drilling should be
    fully sampled within the interpreted mineralised zone to fill in these
    gaps and allow estimation of the waste as well as ore. 
--  Following a more rigorous and reliable testing of density, a calculated
    density has been applied to iron bearing blocks within the block model
    rather than fixed values as in the past. 

 
Mr. David Savage, President and CEO of Kazax, said, "The Independent
Technical Report prepared by the QP, Mining Associates, confirms and
enhances resource and viability of the Lomonosovsky Project. The
Measured and Indicated resource has increased by more than 30% from
the December 19, 2011 National Instrument 43-101 compliant technical
report on the Lomonosovsky Project previously prepared by MA for the
Company, a copy of which is available at www.sedar.com. This c
ombined
with the strong progress the team has made towards completing a
Feasibility Study and completing the processes to give us the
approvals to commence operations at the mine site keeps Kazax very
steady on its path to meeting all of its objectives. The project
looks quite exciting and we have had positive discussions with
offtakers. We remain committed to achieving our objectives of
commencing operations in mid-2013, provided all approvals within
Kazakhstan remain on track." 
Mr. Andrew Vigar, BCppSc, FAusIMM, MSEG, of Mining Associates Limited
is a Qualified Person as defined by National Instrument 43-101and has
supervised the approved of the scientific and technical information
in this news release. 
Project Status 
The project team continues to progress the feasibility study. The
milestones to submit the applications for the registration of the
state reserve and the approval to start pre-strip and mining
operations remains on target for the first quarter of 2013. Start-up
of the pre-stripping operation remains on target for the middle of
2013. 
A further drilling program is being initiated to enhance the resource
status and measurement. Detailed mine planning continues along with
engineering on the beneficiation plant. 
Initial discussions with Chinese, Kazakh and Russian Mills have
commenced; with detailed commercial discussions planned for the first
quarter of 2013. 
Management Changes 
Kazax is pleased to advise that several management changes have been
made with a view to the project entering its final feasibility,
financing and pre-start phase. Steve Rodgers, formerly the CEO of
Kazax has stepped back to an advisory role due to other commitments
and David Savage, currently Chairman and President of Kazax, will
assume the CEO responsibilities. Kevin Morris, formerly CFO, has
stepped down and Brian Egan will assume the role of CFO. Mr. Egan, a
Chartered Accountant with more than 25 years of senior finance
experience in large multinational organisations related to Mining,
will be a strong addition to the Kazax executive. Mr. Egan has
extensive experience in raising funding for mining projects,
particularly in Russia and the CIS. Mr. Egan was formerly CFO of
Petropavlovsk PLC and Aricom Plc. Chris Rowe, currently heading the
in country project team in Kazakhstan, has been appointed as Kazax
Country Manager for Kazakhstan and will lead the in country team
through the final feasibility and start up stages of the project. 
With Mr. Savage assuming the President and CEO role, he will step
down as Chairman of Kazax and Daniel Kunz, currently an Independent
Director of Kazax will assume the role of Non-Executive Chairman of
the Kazax Board of Directors. Mr. Kunz has more than 30 years of
mining experience. Mr. Kunz was previously the President and Chief
Operating Officer of Ivanhoe Mines Ltd and brings a strong source of
mine development knowledge to the board. 
These changes have all been made with a view to prepare the project
for commencement of operations. 
About the Company 
Kazax Minerals Inc. is a mining exploration and development company
focusing on iron ore. Other world-wide target acquisitions are being
sought. Kazax aims to be a significant mid-tier international mine
exploration and development company in the iron ore sector. 
For additional information readers are invited to review additional
corporate and property information available on SEDAR at
www.sedar.com. 
ON BEHALF OF THE BOARD 
David Savage, President and CEO 
Forward-Looking Statements 
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect", "anticipate",
"continue", "estimate", "objective", "ongoing", "may", "will",
"project", "should", "schedule", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking
information or statements. More particularly and without limitation,
this news release contains forward looking statements and information
concerning the Company s future operations and prospects. The
forward-looking statements and information are based on certain key
expectations and assumptions made by the Company, including
expectations and assumptions concerning equipment and crew
availability, and joint venture partner financial capability.
Although the Company believes that the expectations and assumptions
on which such forward-looking statements and information are based
are reasonable, undue reliance should not be placed on the forward
looking statements and information because the Company can give no
assurance that they will prove to be correct. By its nature, such
forward-looking information is subject to various risks and
uncertainties, which could cause the Company's actual results and
experience to differ materially from the anticipated results or
expectations expressed. These risks and uncertainties include, but
are not limited to, reservoir performance, labour, equipment and
material costs, access to capital markets, interest and currency
exchange rates, and political and economic conditions. Additional
information on these and other factors is available in continuous
disclosure materials filed by the Company with Canadian securities
regulators. Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this news release or otherwise, and to not use
future-oriented information or financial outlooks for anything other
than their intended purpose. The Company undertakes no obligation to
update publicly or revise any forward-looking information, whether as
a result of new information, future events or otherwise, except as
required by law. 
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Contacts:
Kazax Minerals Inc.
IR@Kazaxmineralsinc.com