Want some more....Here comes:)
Roger...this isn't KGFC, but is relevant to the "KAZAKSTAN Situation"
Kazakhstan Minerals Corp - News Release
Positive pre-feasibility study at Varvarinskoye
Kazakhstan Minerals Corp - KMC.U
Shares issued 24401981 - - 1997-05-08 close $1.6
Monday May 12 1997 - - News Release
Mr Bert Kennedy reports: The company has received a positive pre-feasibility study
for its Varvarinskoye gold-copper project in northern Kazakstan. The study was
undertaken by Steffen Robertson and Kirsten (UK) Ltd and concludes a work
program carried out between November 1995 and April 1997. The key conclusions
are:
The overall initial resource estimate is 2.74 million ounces of gold
equivalent; Total mineable reserves are 1.99 million ounces of gold equivalent, of which
1.83 million ounces of gold equivalent (18.3 million tonnes grading 3.12 g/t gold
equivalent) is in the mineable proven and probable category; Mining is open pit to
180m below ground level; Metallurgical recoveries from the sulphide ores are 82% for
gold and 92% for copper. Improvement of recoveries by further optimization of
processing circuits will be a major factor in the final feasibility; Initial annual production
is projected at 120,000 gold equivalent ounces; Startup capital costs of US$90 million.
Payback is 2.2 years.
Key project economics on an all equity basis are an internal rate of
return of 22.6% and net present value at a 5% discount rate of
US$55 million; Cash operating costs are US$167/oz for the first nine years and
US$197/oz over the full 13.5 year mine life; Current drilling is expected to add to
proven and probable reserves. KazMinCo has accepted SRK's recommendation to
proceed to final feasibility studies including the procurement of final environmental
approvals and detailed engineering for mine and process design.
KazMinCo is currently short listing engineering companies for this work. A production
decision is anticipated by the end of 1997 and project financing discussions have been
started. The Varvarinskoye deposit, in which KazMinCo has an 86% interest, is
130km southwest of the regional capital of Kustanai and has excellent infrastructure
and site access, with no obstacles to open pit mining. The deposit was originally
discovered in 1936 and actively prospected by Soviet geological expeditions in the
mid-1980s. The Soviet expeditions drilled over 900 boreholes (totalling over
130,000m of drilling) and sank three exploration shafts from which 3,000m of
exploration development took place. KazMinCo has validated this geological
information and created a database using modern mining software to model the
deposit. In addition, KazMinCo has completed a further 100 diamond drill holes,
totalling 19,000m, to confirm the reserve base. As part of the pre-feasibility study
SRK evaluated assay data from historic and recent programs. Over 650 check assays
have been performed in a program supervised by independent consultants giving a high
degree of confidence in the reserve base. Metallurgical testwork under the direction of
Kvaerner Metals Davy was conducted at the Lakefield laboratory, Ontario, where
over 200kg of samples selected by SRK from KazMinCo's drilling program were
tested. Varvarinskoye is one of ten joint ventures with Kazak partners in which
KazMinCo has controlling interests.
In addition to Varvarinskoye, KazMinCo is progressing initial development studies on
its Samarskoye copper-gold project in central kazakstan. The Varvarinskoye
pre-feasibility marks a major step forward in KazMinCo's strategy of building a
significant mining business in Kazakstan by acquiring known resources and applying
western feasibility criteria to fast track production decisions. |
