A definitive feasibility study (DFS) confirms that Kentor Gold’s Andash Gold-Copper Project, which is on track for production in late 2011, is both technically and economically robust with the project.
The DFS, which is based on Andash Zone 1 only, also confirms that the mining and processing methods are well proven and comfortably within industry standards.
The DFS includes design, engineering, cost estimates and implementation plans for an open pit mine and
crush-grind-float processing plant with annual capacity of 1.5 million tonnes increasing to 3 million in year 3. The plant will produce a high quality gold-copper concentrate for sale to third party smelters.
Kentor Gold’s managing director Simon Milroy says, “Looking beyond the initial mining project, we are particularly pleased with the high potential for early expansion and the favourable positioning of Andash.
“Adding additional reserves of 6 million tonnes at similar grades of ore to current reserves, a reasonable expectation from exploration drilling will increase the NPV by 56%.
“We are planning to begin exploration drilling at some of the other known prospects within the exploration licence this month with the aim of increasing the resources.
“Because Andash will be the first operating gold-copper mine in the Talas Valley, we will be ideally positioned to acquire other known resources in the region.”
The company has also signed an agreement to acquire a further 10% in Andash from Aurum Mining, thus increasing Kentor’s ownership in Andash to 90% with the remainder held by a local Kyrgyz company.