Andash

The Andash gold-copper property is located in the Talas Valley in the North West of the Kyrgyz Republic on the border with Kazakhstan and covers an area of 53 sq km.

The mine design for the Andash is based on a two stage open pit with high grade material mined as early as possible. Mining inventory consists of 16 Mt grading 1.05 g/t gold and 0.4% copper. The average waste to ore ratio is 0.72:1. Initial mine life is estimated at 6.5 years.

Mining operations will involve drill and blast of all excavated material, with blast hole sampling being utilized as part of grade control management. Blasts will be surveyed and laid out for excavation by excavators in back hoe configuration.

Excavated material will be segregated by cut-off grade. High grade sulphide ore will be sent to the intermediate run-of-mine pad (.ROM.) and oxide and low grade ore will be stockpiled. Ore will be transported to the mineral processing plant located approximately 6km away. The oxide ore is planned to be processed after all sulphide material is exhausted from the pit and stockpiles.

Waste will be dumped on a waste dump adjacent to the open pit or hauled to the tailings storage facility for use in construction.

The processing facility will include all ore processing activities from crushing through to loading of concentrate onto road transport for transport to the rail yard. The process plant design incorporates a three stage crushing circuit, crushed ore stockpile, reclaim, ball milling in closed circuit with cyclone classification, sequential copper flotation, concentrate regrind, high rate thickening of concentrate, pressure filtration of concentrate and concentrate load-out facilities.

The Andash copper-gold concentrate will be an attractive feed, very suitable for all smelters. The concentrate is a good, clean lower grade copper concentrate, without any significant deleterious elements. The project will produce approximately 30,000 tpa of concentrate grading 22% copper and 60 g/t gold.

Phase 1 of the estimate covers works required to bring the process plant to a throughput capacity of 1.5Mtpa. Phase 2 of the project covers the expansion of the project to a plant capacity of 3.0Mtpa from year 3 of operation.

The previous capital cost estimate for Andash assumed second hand equipment for crushing, milling, and flotation, the new estimate assumes the purchase of all new equipment, which is expected to perform better and be more reliable. The power supply, the primary crusher, the concrete, the buildings and the entire infrastructure is being installed in preparation for the expansion to 3 mtpa.