China Nonferrous Gold Limited is well into the repair and clean-up process at Pakrut Gold Project in the Republic of Tajikistan, following the biggest snowfall for 50 years earlier in 2017. Production is now expected to resume in the first quarter of next year.
Access roads to the mine have been repaired and a temporary power solution is in place. With power restored, the company has also completed drainage work while the repair and restoration of explosives library, oil depots and other facilities is ongoing.
Conditions at the mine site were so severe that full access was restricted until May 2017. The avalanche destroyed three power towers and 2000 metres of power lines, resulting in the complete interruption of power supply in the Pakrut mining area.
Meanwhile, discussions with the company’s insurance provider continue with an initial claim of US$10.32 million submitted.
The events brought significant economic loss to China Nonferrous and impacted the year-end audit, resulting in the auditors issuing a disclaimer of opinion in respect of the financial statements for the year ended December 31, 2016, primarily as a result of lack of access to inventory and to the mine site.
The group has been working closely with the auditors in respect of these issues and good progress has been made following the restoration of access to the mine. It is the intention of management to have resolved them by December 31, 2017.