H1 2013 Production and Operations Update
2 July 2013
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
H1 2013 Production and Operations Update
Kounrad on track to meet 10,000 tonne production target for 2013
Central Asia Metals PLC (AIM:CAML), a copper producing company focused on base metals in Central Asia, today announces a production update for its Kounrad SX-EW Copper Project in Kazakhstan and an update on its Alag Bayan exploration licence in southern Mongolia.
Highlights
· Q2 2013 production of 3,081 tonnes
· H1 2013 production of 4,857 tonnes
· 5,000 tonnes of copper sold via off-take contract with Traxys SA
· Kounrad on track to meet 10,000 tonnes production target for 2013
· Kounrad expansion options continue to be assessed
· Alag Bayan exploration licence cancelled
Kounrad
Following a record monthly output of 1,114 tonnes in April 2013, the plant produced 4,857 tonnes of copper during the first half of 2013, ahead of the Company's internal budget. Allowing for the planned seasonal variations in output, Kounrad is therefore on track to meet its 10,000 tonne production target for 2013.
The plant's total output, since the start of operations at the end of April 2012, has now exceeded 11,400 tonnes. This was achieved over a period that included the commissioning, ramp-up and the first winter of operations, during which severe weather conditions were experienced. Kounrad's operational capability during all weather conditions, especially the winter months, is now proven, and in the course of the first 14 months of continuous production the Company has gained valuable experience of operating the plant in a challenging environment.
The Company continues metallurgical test work and engineering studies on expanding copper production at Kounrad. Options currently being assessed include expansion of production at the current plant as well as construction of a second plant. The Company expects to be in a position to decide on the most appropriate expansion option in Q4 2013, and a decision to start construction will be subject to the completion of the new Framework Agreement concluded with Kenges Rakishev, as announced on 27 June 2013.
Alag Bayan
In 2008, the Company acquired the exploration licence at Alag Bayan in the Southern Gobi region of Mongolia. From that time a significant amount of exploration work has been conducted by the Company, including 10,171 metres of diamond drilling and several geophysical surveys.
The geophysical surveys were undertaken by Goviex Mongolia LLC, and more recently by IBEX Mongolia LLC ("IBEX") with drilling largely concentrated on areas identified by these surveys. In 2012, as part of the earn-in deal concluded in 2011, IBEX drilled a further 3,260 metres.
These exploration efforts defined a small oxide resource in the center of the licence, and several mineralised intersections on the western boundary of the licence. However, the size and grade of these were insufficient to justify conversion to a mining licence, and consequently the Company has now received notification from the Mineral Resource Authority of Mongolia that the exploration licence has reached the end of its renewal period, and has been cancelled.
Nick Clarke, Chief Executive Officer, commented:
"We are pleased to have reached a total production of 4,857 tonnes of copper at Kounrad in the first half year, following a new monthly record in April. Kounrad continues to operate in line with its design, as demonstrated by H1 2013 production.
The cancellation of the exploration licence at Alag Bayan is a disappointment. However, the Company will continue to look for new opportunities in Central Asia and elsewhere, whilst focussing on further developing its core asset at Kounrad to deliver growth and value to our shareholders."
Enquiries:
|
Central Asia Metals plc |
Nick Clarke Nigel Robinson |
+44 (0) 20 7898 9001 |
|
Canaccord Genuity Limited |
Andrew Chubb Christopher Fincken |
+44 (0)20 7253 8000 |
|
Mirabaud Securities LLP |
Peter Krens |
+44 (0)20 7878 3362 |
|
Pelham Bell Pottinger |
Charles Vivian Lorna Spears |
+44 (0)20 7861 3232 |
Notes to Editors
Central Asia Metals PLC ("CAML" or the "Company") is an AIM-listed UK company based in London. Its countries of operation are Kazakhstan and Mongolia. CAML is a copper producer focused on base metals. The Company announced its annual dividend policy in December 2012.
This information is provided by RNS
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