Manas Resources has received the full backing of the Energy and Minerals Parliamentary Committee of Kyrgyz Republic for its Shambesai Gold Project. Shambesai has the potential to be a simple, high-grade, high-recovery gold leach project with a BFS complete for more than 220,000 ounces of gold at US$387 per ounce.
The committee had recommended the full development of the project after reviewing all licence and permit submissions as well as considering its impact on the local community and the country. It also issued an official decree to allow Shambesai development to continue unhindered.
This highlights the considerable public support from the Kyrgyz Parliament and Government for the timely development of the project, which will contribute significantly to the national economy.
ASX-listed Manas also expects to make an OVOS (the Kyrgyz Republic equivalent of the Environmental and Social Impact Assessment) submission soon and is in advanced discussions with banks and institutions for financing of the project’s capital expenditure.
Manas is now updating the Shambesai Bankable Feasibility Study (BFS) schedule and capital cost expenditure to reflect the current project timeline including expectations for award of the final environment and construction permits, and timing for the drawdown of the project finance opportunities currently being discussed.
In showing its support for the project, the Energy and Minerals Parliamentary Committee reviewed all licence and permit submissions made by Manas, considered support and concerns from the local community and reviewed the socio-economic contribution the Shambesai project will make to the Kyrgyz Republic and, in particular, to the local Maidan community nearest the deposit. This led to the recommendation for its immediate development.
In addition, the committee instructed national and local authorities, via official decree, to allow development to continue unhindered and according to current schedules, subject to Manas meeting government and local community laws and guidelines.
Manas expects to receive a structured support regime that unites both government and community backing as one and potentially paves the way for the commencement of development of the Shambesai Gold Project in 2014.
Since it was issued the Shambesai Infrastructure Land Transformation and Land Allotment or ‘Land Permit’ in September 2013, the company has been working towards a number of key submissions to advance towards construction, including the completion and submission of the OVOS. Manas is looking forward to submitting the OVOS shortly with the positive outcome of the Parliamentary Committee hearing providing an impetus for the OVOS submission.
Upon submission of the OVOS Manas will initiate the completion of detailed project design in conjunction with its primary consultants, Beijing General Research Institute for Mining and Metallurgy (BGRIMM) and Asia Rud Project (ARP).
The company is also advancing discussions regarding financing of the capital requirements for the project with a number of banks and institutions from North America and Asia.
Mine and plant construction is scheduled for 2014 with gold production targeted for the first half of 2015. The Shambesai project has the potential to be in the lowest quartile of cash costs for gold producers worldwide, with total LOM (C3) after capital and tax estimated to be US$676/ounce.