A bankable feasibility study (BFS) for Manas Resources’ Shambesai Gold Project has confirmed the original concept of the April 2012 definitive feasibility study (DFS) which demonstrated the project as a low‐cost, high‐margin project that is technically simple and which can be commissioned in a relatively short timeframe for a low capital cost.  1

The BFS has been completed in conjunction with Perth‐based engineering consultants Mintrex to enable Manas to finalize finance options for construction of the project, while reflecting revised gold price scenarios, including US$1400 as a mine life, base case gold price.

The asset is projected to process 2.54 million tonnes of ore @ 3.4 grams/tonne gold containing 277,000 ounces over a 4.5 year mine-life at operating cash costs of US$387 per ounce. The BFS forecasts undiscounted net cash flows of US$147.7 million after life‐of‐mine capital expenditure of US$47 million, operating costs, taxes and royalties. The capital cost to first production and gold pour is estimated at US$41.3 million, while the total capital expenditure to practical completion has been estimated at US$44 million with capital payback within 11 months of operation. The NPV has been estimated at US$105.4 million with an IRR of 67% at an 8% discount rate for the 4.5-year mine life.

Manas’ managing director Stephen Ross says, “We are extremely pleased with the positive outcomes of the BFS for Shambesai which has confirmed, following independent review and as expected, a technically low‐risk and highly‐profitable operation which is expected to pay‐back all capital requirements within the first year of production.

“The completion of a full BFS allows us to continue to pursue project finance opportunities with a great degree of confidence in attracting the most commercially beneficial terms possible for Manas shareholders. We are also encouraged by the recent open support in the Kyrgyz media from the Government of the Kyrgyz Republic for development of the Shambesai project.”

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