Manas Resources’ Shambesai Gold Project is now expected to generate up to US$190 million during the first five years of production, with more than 200,000 ounces of gold being produced.
A revised mining evaluation and pit optimization study has upgraded the project’s potential, with increases to throughput, cash flows and mine life prompted by further oxide ore discoveries and future sulphide ore treatment.
“We are extremely pleased with the updated cash flow numbers from the pit optimization study which, when compared to the November 2010 Scoping Study, demonstrate that we can expect a much improved production rate and subsequent improved cash flows for the Shambesai shallow oxides alone,” says Manas’ managing director Stephen Ross.
“Despite this conservative approach to the mining plan focusing on the near surface oxide material only, project cash flows from the updated pit optimization work have almost doubled.
“We look forward to the granting of our mining licence and an early move into the implementation phase of the Shambesai gold project,” he says.
Shambesai is in the Tien Shan gold belt in the Kyrgyz Republic, and is expected to be one of the lowest-cost gold operations in the world. Manas is the largest and most active gold explorer in the Kyrgyz Republic with nine projects under exploration. The company’s second largest gold project, Obdilla, is 7km from Shambesai and has a resource estimate of 485,000 ounces.
The project’s feasibility study, which is being prepared for its scheduled completion next month, will include the recently completed mining evaluation and pit optimization study as well as basic engineering for the proposed processing plant and updated capital and operating costs.