THE Sanitary Protection Zone (SPZ) for Manas Resources’ Shambesai Gold Project has been approved by the Kyrgyz State Ministry of Health and the State Agency for Environment Protection and Forestry. The SPZ is the final part of the Kyrgyz Republic environmental and social impact assessment process and allows the completion of final design permitting and community consultation for Shambesai.
The SPZ is a buffer zone established around industrial and mining facilities under Kyrgyz environmental legislation where activities are controlled to ensure any potential possible environmental impacts are limited.
For the Shambesai project the SPZ, which is established through independent modelling, doesn’t extend over any of the local village areas and confirms the project is likely to have minimal impact on any current agricultural and residential use, thus reducing then level of compensation claims which possibly could be considered.
Manas continues to work on approval of the final design and infrastructure permits required to commence construction. The first of these, the environmental audit of the process plant basic engineering was successfully completed, and the technical and safety review is under way.
Manas has recently received the basic engineering design for the mine infrastructure and the open pits from its Kyrgyz Republic consultant Asia Rudd Project and will submit the final detailed design for approval shortly.
Discussions regarding financing the capital requirements for the low-cost, high-margin Shambesai Gold project continue with a number of institutions and the issuing of these further permits is another major milestone that assists in progressing the financing of the project.
In September Manas successfully finalized plans for a private placement offer to raise $850,000 through the issue of shares at an issue price of 3 cents per share. The lead manager to the placement was Halcyon Corporate from Melbourne, and the raising was well supported by current shareholders with a number of new investors subscribing for shares.
The funds will be used to provide additional general working capital while financing discussions continue, as well as being applied to the ongoing pre-development cost of the Shambesai project.
Manas is an Australian-based gold explorer with substantial resources, high-grade drill targets and a large highly-prospective land holding in the Tien Shan gold belt. It has a resource base of 1.18 million ounces at the Shambesai and Obdilla gold projects which will continue to grow through aggressive and continuous exploration.
A bankable feasibility study was released for Shambesai in May 2013 which confirmed the original concept of the April 2012 definitive feasibility study which demonstrated it as a low-cost, high-margin gold project that is technically simple and which can be commissioned in a relatively short time frame for a low capital cost.