Oxus Gold PLC
12 October 2005
For immediate release: 12 October 2005
Oxus pours first silver from new mine
First metal from Vysokovoltnoye Heap Leach Project
LONDON: 12 October 2005 - Oxus Gold plc is pleased to report that it has
produced the first bar of silver from the Vysokovoltnoye gold and silver heap
leach project in Uzbekistan.
Mining of ore started in early September, following the first mine blast on 24
August, and was initially stockpiled pending the commissioning of the process
plant. The ore was placed on the heap leach pads at the beginning of this month
and mineralised solution was fed to the plant last week. Full production is
scheduled for next month and planned mine production is 21,035 ounces of gold
and 2,469,083 ounces of silver per annum.
The capital cost of the project is $9.1 million, which has been kept to a
minimum due to the existing infrastructure at AGF. It is expected that the cash
costs of metal production will be approximately $160 per ounce.
Vysokovoltnoye has mineable reserves of 1.66 million tonnes at grades of 127g/t
Ag and 1.13g/t Au for ore body number 7 and 2.33 million tonnes at grades of 27g
/t Ag and 1.24g/t Au for ore body number 4. Ongoing work aimed at defining
extensions of the zones may increase the resource base for future growth. Both
ore bodies have very low stripping ratios
Vysokovoltnoye is an open pit mine and is located within the Amantaytau
Goldfields' (AGF) licence area and is 30 kms away from AGF's existing Amantaytau
mining operations, Oxus's first mine in Uzbekistan. AGF is owned jointly by
Oxus and the Uzbekistan Government.
Mr Bill Trew, chief executive of Oxus, said today: 'We are very pleased to have
produced our first silver from Vysokovoltnoye so quickly, after starting ore
production less than two months ago. This is a notable achievement and a key
step in our strategy of developing five mines in five years.'
'We are also on the way to becoming a significant silver producer. Between AGF
and Marakand Minerals, the Group has total resources of more than 704 million
ounces of silver, and reserves of over 45 million ounces. We expect to produce
more than 3 million ounces in 2006.'
Oxus announces that on 7 October 2005 the Company issued for nil consideration
options over ordinary shares of 1p par value to directors as set out below:
Director Options granted Exercise price Total shares under option
William Trew 2,000,000 54p 4,000,000
Jonathan Kipps 1,300,000 54p 2,600,000
Richard Wilkins 1,300,000 54p 2,600,000
Oliver Prior 250,000 54p 500,000
Douglas Sutherland 250,000 54p 500,000
Adjusting for the issue of ordinary shares following the exercise of these
options, the new issued share capital would be 297,808,821 and the new
shareholding in the Company for each director would be as follows:
Director Total %
William Trew 10,338,872 3.47%
Jonathan Kipps 5,642,756 1.89%
Richard Wilkins 6,716,239 2.26%
Oliver Prior 556,420 0.19%
Douglas Sutherland 658,420 0.22%
The new options are exercisable 50% at any time following the first gold pour at
the Jerooy project in the Kyrgyz Republic and 50% at any time following
cumulative Group gold production of 500,000 ounces until 9 October 2010.
Bill Trew, CEO Oxus Gold: Tel: +44 (0)20 7907 2000
Keith Irons, Bankside: Tel: +44 (0)20 7367 8873 /07885 356 639
This information is provided by RNS
The company news service from the London Stock Exchange