The partial restart of Central Asia Resources’ Dalabai Gold Project has proceeded on schedule with the first delivery of cathode gold on September 27 containing 283 ounces of gold and 669 ounces of silver.
Payment has been slated for this month, with pricing determined by the one-month preceding London Metal Exchange (LME) average price.
Crushing activities were completed at Dalabai on October 2, with an estimated 40,000 tonnes of surface ore stockpiles crushed, stacked on Pad 2 and leached. Leaching is anticipated to continue until December, with monthly shipments of pregnant resin for desorption.
The limited restart exercise is estimated to produce 1000 to 1100 ounces of gold sales. All limited restart site activities are completed to budget and schedule without safety problems.
Planning continues for a full mining restart at Dalabai, with recruitment of key operational staff under way. Central to the full restart plans are to increase monthly crushing capacity to 55,000 tonnes and to undertake gold desorption and production of cathode gold onsite. Equipment selection for these items is in progress, as are financing facilities.
Tranche 3 Gold Loan funds at US$500,000 were received in full on October 4. Milestone hurdles for the fourth and final tranche of US$500,000 relate to procurement of other funding and progressing development of the Altyn Tas work program, which the company will pursue in the current quarter.
Funding opportunities for potential debt finance with a Kazakh bank and for possible equity finance are in progress. This targeted phase two funding for capital upgrades and working capital is required for Dalabai’s full mining restart. Funding is also expected to catalyze lifting the Australian Stock Exchange suspension of share trading.
Central Asia Resources is focused on exploration, development and production of gold in Kazakhstan, where it holds two licence areas which include four deposits with JORC resources and areas with exploration upsides. These areas also have significant prospectivity based on extensive exploration dating to Kazakhstan’s history a Soviet republic.
The licence areas are within recognized gold belts, and close to operating mines and infrastructure. Trial mining commenced at Dalabai in February 2012 using shallow open pit mining and heap leach technology. Operations were suspended in November 2012 when Dalabai was placed on care and maintenance.