Russell
Another news release. Are they at the bottom on price? Or is there no bottom.
KAZAKHSTAN MINERALS CORPORATION ANNOUNCES PRELIMINARY
RESOURCE ESTIMATE FOR THE SAMARSKOYE COPPER-GOLD
PORPHYRY
1997-05-20
WOKING, SURREY
KazMinCo is pleased to announce completion of the pre-feasibility
diamond drilling program totalling 27,000m on the Samarskoye
copper-gold porphyry deposit in Central Kazakstan. Based on the
results of this program, which has a drill spacing of between
60 and 80 metres, a preliminary resource estimate within a 0.5%
copper cut-off envelope, has been performed by Mineral Resources
Development Inc. (MRDI) of San Mateo, California. The present
combined preliminary resource for the west and east mineralised
bodies at a 0.4% copper cut-off totals 197 million tonnes at 0.84%
copper and 0.33g/t gold containing 3.63 billion pounds of copper
and 2.09 million ounces of gold. An inverse distance squared
calculation method was used for the estmate, utilising a lateral
search distance of 75m. As previously reported, the western body
contains a high grade core of copper-gold mineralisation where
intercepts of 324m at 3.04% copper, 0.88g/t gold (including 103m at
4.98% copper and 1.32g/t gold) - drill hole SAM 108, and 195m at
2.2% copper, 0.63g/t gold - drill hole SAM 109, have been obtained.
A preliminary scoping study has been completed by MRDI in order to
determine the relative profitability of underground and open pit
mining scenarios. The study identified an initial open-pit
containing approximately 90 million tonnes that could support an
economically viable operation at a production rate of between
20,000 and 30,000 tonnes of ore per day.
Attractive commercial terms have recently been agreed with the
Government of Kazakstan for the development of the deposit over a
20-year period, which is extendable to 25 years. These include the
right to refine overseas and export product; net smelter royalties
are set at 1.0% for copper and 1.2% for gold; waiver of duty and
import tariffs for the life of the project and the flying of
mineral resource taxes at reasonable levels. To mark this agreement
and the approval of the deposit reserves outlined to date by the
State Committee for Reserves, Samarskoye has been renamed the
Nurkazgan deposit; KazMinCo holds an 88.5% interest in the deposit.
It is planned to complete the pre-feasibility study for the
copper-gold deposit by the third quarter of 1997 and to commence
infill drilling for final feasibility at that time. The study will
place emphasis on optimization studies for such items as
geotechnical engineering to reduce the waste ore ratio; wall rocks
at Nurkazgan are strong and may support steeper pit slope angles
than those used in the preliminary scoping study which generated a
waste to ore ratio of 7.5:1. Further metallurgical testwork will be
performed to confirm the excellent copper and gold recoveries
obtained from preliminary testwork as well as examining factors
that may reduce project capital costs. The excellent infrastructure
of the site, in terms of proximity to grid power, roads, water,
railroad, population centres, cement plant and steelworks, will
have a strong positive impact on project economics,
The Nurkazgan pre-feasibility study will also include the impact of
the Northern Gold Deposit located 1.5km north of the copper-gold
porphyry in which KazMinCo also has an 88.5% interest and which
falls within the same Licence Area and under the same Contract with
the Government as Nurkazgan (Samarskoye). In-house resource
estimates using KazMinCo and Soviet data give a resource of 1.3
million ounces of contained gold. In view of the proximity of the
two deposits, KazMinCo believes the combined operation could
enhance the economics of the project.
KazMinCo has 10 active joint ventures with Kazak partners in which
the Company has controlling interests. In addition to Nurkazgan,
KazMinCo has received a positive Pre-Feasibility study for its
Varvarinskoye gold-copper project in Northern Kazakstan. 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.
KazMinCo is listed on The Toronto Stock Exchange and its shares
trade under the symbol KMC.U.
On Behalf of the Board
Tony Williams Bert Kennedy
Chairman President & CEO
For additional information contact:
UK Europe
Tony Williams at: D. Williamson at:
Dragon Capital Corporation David Williamson Associates Ltd.
22 Grosvenor Square 78 Old Broad Street
LONDON WIX 9LF LONDON EC2M 1QP
ENGLAND ENGLAND
Tel: +44 (0) 171 491 2525 Tel: +44 (0) 171 628 3989
or North America
Bert Kennedy at: Maureen Luck at:
KazMinCo The Barrington Communication Group, Inc
Cavendish House 1100 - 900 West Hastings Street
40 Goldsworth Road VANCOUVER, B.C. V6C 1E6
WORKING CANADA
Surrey GU21 IJT
ENGLAND Tel: 1 604 682 1700
1 800 663 0321
Tel: +44 (0) 1483 729995
No stork exchange securities commission or other regulatory
authority has approved or disapproved the information contained
herein
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Francis Scavo |
