Volume 9 Edition 3 2012 - The ASIA Miner

Central AsiaPositive study for Karchiga VMS projectORSU Metals has received positive results froma definitive feasibility study (DFS) for its 94.75%-owned Karchiga volcanogenic massive sulphide(VMS) copper pr oject in northeastKazakhstan. The DFS is based on indicated resourcesof 10.8 million tonnes of combined sulphideand oxide mineralization grading 1.73%copper for 412.7 million pounds of containedcopper and an inferred resource of 20,000 tonnesof sulphide mineralization grading 1.28%for 700,000 pounds of contained copper.Using only the indicated estimates, the DFSsupports a probable mineral reserve estimateof 8.5 million tonnes of sulphide or e in theCentral and North East pits containing 320million pounds of copper at an average gradeof 1.71% copper to be amenable to flotationand an additional 1.5 million tonnes of ore inthe Central pit containing 47.2 million poundsof copper at an average grade of 1.43% tobe amenable to heap leaching.The DFS was prepared by the company’slead mining consultant SRK Consulting (UK)Limited, which is independent of Orsu. Theopen pit mining schedule calculated a producingmine life of 11.5 years. The mining scheduleenvisages the mining of 10 milliontonnes of sulphide and oxide or e and 124million tonnes of waste. The average annualmining rate is 750,000 tonnes.For the first 2.25 years of the mine life, themining schedule includes open pit mining ofthe Central sulphide ore body alone to maximizethe sulphide copper grade and hencesulphide copper r ecovery. The optimizedOrsu Metals’ Karchiga project is in the far northeast of Kazakhstan.mine schedule has been developed to minimizethe stripping ratio in the initial thr eeyears. In addition, the use of stockpiling hasenabled the company to increase the processedore grade. From year 4 until year 7, sulphideore will be mined from the Central andNorth East open pits. Fr om year 8 until theend of mine life in year 12, all mining will continuein the North East pit.The plant is designed to annually pr ocessabout 750,000 tonnes of sulphide ore. A conventionalprocessing route was chosen usingrelatively fine grinding and selective sulphideflotation to produce a 27.9% bulk concentrate.First production has been scheduled forthe fourth quarter of 2013.Copper from the oxide ore will be extractedusing SXEW process. The oxides will be treatedover 4.5 years starting in 2018 at 360,000tonnes annually and is expected to pr oducean annual average of 6.22 million pounds ofcopper cathode. Production of cathode copperwill continue until 2022.To reduce initial CAPEX, SXEW plant constructionhas been delayed until after the initialCAPEX payback. The plant has been designedto treat a monthly average of 30,000 tonnes ofleachable oxide ore. The DFS demonstratesthat economically the best option is to delaySXEW construction until 2017, allowing thecost of construction to be financed fr om revenuegenerated by the sulphide ore treatment.Funds boost for Sekisovskoye UG developmentHAMBLEDON Mining has confirmed aUS$3 million boost from a major investor.The funds will be used to continue developmentof the Sekisovskoye undergr oundgold mining operation in Kazakhstan. TheEuropean Bank for Reconstruction and Development(EBRD) paid the funds as part ofa share subscription agreement. In return itwill receive a 6% stake in the company.In February, Hambledon announced a dealwith the EBRD which could pr ovide it withmore than US$20 million to invest in Sekisovskoye.The EBRD agreed terms of a US$15million loan facility and the US$3 million equityinvestment. In addition Hambledon has issuedthe EBRD warrants worth US$2.3 million.The bank was established after the ColdWar to help ex-Communist countries transitionto market economies. It injects about 9billion Euros a year into pr ojects supportingthe development of market economies inEurope and Central Asia.Hambledon’s growth plans have also includedthe acquisition of Akmola Gold LLP, whichoperates two gold projects – Tellur and Stepok- neighbouring Sekisovskoye. The pr oposedUS$5 million acquisition was announced lastSeptember but is yet to be completed. It wasplanned that ore from these operations wouldbe processed at Sekisovskoye.The company says the Kazakhstan state miningfirm is planning to take a pre-emptive stakein the deal while certain permits and waiversneeded to complete the acquisition have yet tobe received from Kazakh authorities. Becauseof the delay the sellers ar e in talks with Hambledonseeking to amend the terms of the deal.Hambledon was supposed to have paidUS$3 million by the end of Mar ch, withUS$2.5 million due to the sellers and the remainderto the gover nment. The companysays none of the payments have been madebecause of the delays.Hambledon is advancing underground drillingto validate and expand resources.16 | ASIA Miner | May/June 2012