May/June 2013 - The ASIA Miner

Central Asia
Chaarat to begin with Tulkubash heap leach
CHAARAT Gold Holdings is targeting the second
half of the year to begin heap leach
production at Tulkubash, which is part of the
Chaarat project in the Kyrgyz Republic. Starting
with the heap leach process (HLP) rather
than the carbon-in-leach (CIL) method
will reduce the project’s capital cost and
power requirements.
The first stage development of Tulkubash involves
processing low-sulphur clean ore. During
the 2012 exploration season the company
Chaarat Gold Holdings’ Chaarat project is in the northwest of the Kyrgyz Republic with impressive infrastructure.
identified that the open pit potential of Tulkubash
was greater than previously estimated
and that the shallow material of this deposit
and that at Kiziltash is amenable to HLP.
Further drilling was undertaken to delineate
the heap leachable material. At Tulkubash
it is estimated that about 2.7 million
tonnes of resource at a grade of 2.06
grams/tonnes is suitable for HLP. The deposit
is open towards the north.
In addition, potential heap leachable material
in the Kiziltash section has been identified.
Metallurgical tests are being conducted and
initial results have been encouraging. If results
are confirmed, the open pit mineable heap
leachable resource may increase by up to an
additional 4.8 million tonnes @ 3.29
grams/tonne. The lower power requirement
will reduce the cost of production while
power is still supplied by diesel generators.
Production capacity will initially be constrained
by the size of the mining fleet. In addition,
the lower head grade caused by a lower cutoff
and the lower recovery from a HLP operation
means the company anticipates initial
annual production capacity of about 21,000
ounces. However capacity, which is effectively
only a matter of upgrading the fleet and
some minor modifications to the processing
circuit, can be increased quickly and is expected
to reach 50,000 ounces during 2014.
The company has already invested in the
design of the proposed final layout of a CIL
production facility capable of supporting annual
production of about 200,000 ounces.
Far as possible, elements of the HLP will be
located in their final location, within the envelope
of the full size plant, to allow expansion
to be implemented as smoothly.
Dalabai mining expected to resume shortly
CENTRAL Asia Resources expects to re-start
commercial mining at Dalabai Gold Project in
Kazakhstan in the near future. The company
temporarily suspended operations last November
after a number of equipment failures
delayed the stacking of ore on heap leach pad
two. As a consequence of the delays irrigation
of pad two would have had to begin during
winter which was technically unfeasible.
The temporary suspension has allowed the
company to undertake necessary improvements
to the processing plant, looking to deal
with mercury and copper deposition issues,
as well as build up a critical spare parts inventory
and further streamlining of the organizational
structure.
The company managed to reach its preliminary
targets after starting trial mining in February
2012 and generated sufficient cash to
construct pad two from internal resources.
Cash costs of about Aus$1000 per ounce
were achieved despite only one pad being in
operation. Central Asia planned to simultaneously
operate both pads to optimize results
and was targeting ongoing operations with associated
cash costs of Aus$700 per ounce.
Central Asia has terminated its joint venture
agreement with Manas Resources in relation
to the Altyntas Gold Project. Under the agreement
Manas had the right to earn up to 70%
in the project by spending Aus$2 million on exploration
and mine development. By mutual
agreement, the parties have terminated the arrangement
and Central Asia will reimburse
Manas the expenditure incurred by it to date.
The company has also finalized the raising
of $750,000 for an issue of convertible notes.
Also, as announced in December 2012, Millstar
Holings SA and the company executed
a deed of amendment to Millstar’s loan
agreement and the $3 million loan repayment
date was extended to December 15, 2014.
In consideration for the extension, the company,
subject to shareholder approvals, has:
• Granted Millstar the right to convert a portion
or all of its loan into ordinary shares at
the lower of 2 cents or the issue price of
any future capital raising; and
• Agreed to issue Millstar with options to acquire
shares in the company that, upon
exercise, would represent 10% of its issued
capital at the date of the options
issue. These options will have an expiry
date of December 15, 2013, and an exercise
price of the lower of 2 cents or the
issue price of any future capital raising.
The company has recently completed a capital
raising at $0.01 per share, thus the Millstar
loan conversion and options prices are
$0.01. The parties have agreed to fix the
number of options issued to Millstar at
83,810,000. Millstar has expressed interest
in converting $1.4 million of the loan.
22 | ASIA Miner | May/June 2013