May/June 2013 - The ASIA Miner
May/June 2013 - The ASIA Miner 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
- Page 1: May/June 2013 | Volume 10 | Issue 3
- Page 4: From The Editor Networking vital in
- Page 7 and 8: Mining Success Stories Matthew Gill
- Page 9 and 10: Mining Success Stories have collect
- Page 12: Asian Intelligence Evolution opens
- Page 16: Central Asia Kazax closes Lomo iron
- Page 20: Central Asia Exploration agreement
- Page 26: Central Asia Study examines second
- Page 30: China Expansion work continues at J
- Page 34: China New veins identified at GC pr
- Page 37 and 38: Vietnam THE first ferrotungsten pro
- Page 39 and 40: Laos Amanta completes Luang Namtha
- Page 41 and 42: Cambodia A RECENT soil geochemical
- Page 43 and 44: Philippines Red Mountain starts dri
- Page 45 and 46: Indonesia Extensive drilling progra
- Page 47 and 48: Indonesia DESPITE a minor delay in
- Page 49 and 50: Mongolia SUCCESSFUL metallurgical t
- Page 51 and 52: Australia CORE Exploration has re-c
- Page 53 and 54: India NSL Consolidated has signed a
- Page 55 and 56: On the move Energy and Minerals Aus
- Page 57 and 58: International Project Survey The nu
- Page 59 and 60: International Project Survey margin
- Page 61 and 62: International Project Survey Projec
- Page 63 and 64: Mine Design Western Australia, wher
- Page 65 and 66: Mine Design Geobank geological data
- Page 67 and 68: Events CIM 2013 CONVENTION May 5-8,
- Page 69 and 70: Product News Gearless drive system
- Page 71 and 72: Supplier News Atlas Copco Nusantara
Central Asia<br />
Chaarat to begin with Tulkubash heap leach<br />
CHAARAT Gold Holdings is targeting the second<br />
half of the year to begin heap leach<br />
production at Tulkubash, which is part of the<br />
Chaarat project in the Kyrgyz Republic. Starting<br />
with the heap leach process (HLP) rather<br />
than the carbon-in-leach (CIL) method<br />
will reduce the project’s capital cost and<br />
power requirements.<br />
<strong>The</strong> first stage development of Tulkubash involves<br />
processing low-sulphur clean ore. During<br />
the 2012 exploration season the company<br />
Chaarat Gold Holdings’ Chaarat project is in the northwest of the Kyrgyz Republic with impressive infrastructure.<br />
identified that the open pit potential of Tulkubash<br />
was greater than previously estimated<br />
and that the shallow material of this deposit<br />
and that at Kiziltash is amenable to HLP.<br />
Further drilling was undertaken to delineate<br />
the heap leachable material. At Tulkubash<br />
it is estimated that about 2.7 million<br />
tonnes of resource at a grade of 2.06<br />
grams/tonnes is suitable for HLP. <strong>The</strong> deposit<br />
is open towards the north.<br />
In addition, potential heap leachable material<br />
in the Kiziltash section has been identified.<br />
Metallurgical tests are being conducted and<br />
initial results have been encouraging. If results<br />
are confirmed, the open pit mineable heap<br />
leachable resource may increase by up to an<br />
additional 4.8 million tonnes @ 3.29<br />
grams/tonne. <strong>The</strong> lower power requirement<br />
will reduce the cost of production while<br />
power is still supplied by diesel generators.<br />
Production capacity will initially be constrained<br />
by the size of the mining fleet. In addition,<br />
the lower head grade caused by a lower cutoff<br />
and the lower recovery from a HLP operation<br />
means the company anticipates initial<br />
annual production capacity of about 21,000<br />
ounces. However capacity, which is effectively<br />
only a matter of upgrading the fleet and<br />
some minor modifications to the processing<br />
circuit, can be increased quickly and is expected<br />
to reach 50,000 ounces during 2014.<br />
<strong>The</strong> company has already invested in the<br />
design of the proposed final layout of a CIL<br />
production facility capable of supporting annual<br />
production of about 200,000 ounces.<br />
Far as possible, elements of the HLP will be<br />
located in their final location, within the envelope<br />
of the full size plant, to allow expansion<br />
to be implemented as smoothly.<br />
Dalabai mining expected to resume shortly<br />
CENTRAL Asia Resources expects to re-start<br />
commercial mining at Dalabai Gold Project in<br />
Kazakhstan in the near future. <strong>The</strong> company<br />
temporarily suspended operations last November<br />
after a number of equipment failures<br />
delayed the stacking of ore on heap leach pad<br />
two. As a consequence of the delays irrigation<br />
of pad two would have had to begin during<br />
winter which was technically unfeasible.<br />
<strong>The</strong> temporary suspension has allowed the<br />
company to undertake necessary improvements<br />
to the processing plant, looking to deal<br />
with mercury and copper deposition issues,<br />
as well as build up a critical spare parts inventory<br />
and further streamlining of the organizational<br />
structure.<br />
<strong>The</strong> company managed to reach its preliminary<br />
targets after starting trial mining in February<br />
2012 and generated sufficient cash to<br />
construct pad two from internal resources.<br />
Cash costs of about Aus$1000 per ounce<br />
were achieved despite only one pad being in<br />
operation. Central Asia planned to simultaneously<br />
operate both pads to optimize results<br />
and was targeting ongoing operations with associated<br />
cash costs of Aus$700 per ounce.<br />
Central Asia has terminated its joint venture<br />
agreement with Manas Resources in relation<br />
to the Altyntas Gold Project. Under the agreement<br />
Manas had the right to earn up to 70%<br />
in the project by spending Aus$2 million on exploration<br />
and mine development. By mutual<br />
agreement, the parties have terminated the arrangement<br />
and Central Asia will reimburse<br />
Manas the expenditure incurred by it to date.<br />
<strong>The</strong> company has also finalized the raising<br />
of $750,000 for an issue of convertible notes.<br />
Also, as announced in December 2012, Millstar<br />
Holings SA and the company executed<br />
a deed of amendment to Millstar’s loan<br />
agreement and the $3 million loan repayment<br />
date was extended to December 15, 2014.<br />
In consideration for the extension, the company,<br />
subject to shareholder approvals, has:<br />
• Granted Millstar the right to convert a portion<br />
or all of its loan into ordinary shares at<br />
the lower of 2 cents or the issue price of<br />
any future capital raising; and<br />
• Agreed to issue Millstar with options to acquire<br />
shares in the company that, upon<br />
exercise, would represent 10% of its issued<br />
capital at the date of the options<br />
issue. <strong>The</strong>se options will have an expiry<br />
date of December 15, <strong>2013</strong>, and an exercise<br />
price of the lower of 2 cents or the<br />
issue price of any future capital raising.<br />
<strong>The</strong> company has recently completed a capital<br />
raising at $0.01 per share, thus the Millstar<br />
loan conversion and options prices are<br />
$0.01. <strong>The</strong> parties have agreed to fix the<br />
number of options issued to Millstar at<br />
83,810,000. Millstar has expressed interest<br />
in converting $1.4 million of the loan.<br />
22 | <strong>ASIA</strong> <strong>Miner</strong> | <strong>May</strong>/<strong>June</strong> <strong>2013</strong>