GRD Minproc wins Kentor contract
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GRD Minproc, a subsidiary of Perth-based engineering company GRD, has been awarded the definitive feasibility study contract by Kentor Gold for its Andash gold-copper project in the Kyrgyz Replublic.
The announcement is below:
Kentor Gold Limited (ASX code: KGL) (Kentor or the Company) has engaged the Australian-based international engineering company GRD Minproc to undertake a definitive feasibility study into the high grade Andash gold-copper project in the Kyrgyz Republic.
Andash is targeted for production in 2011 at the average annual rate of 60,000 oz gold and 5,000 tonnes copper for eight years, based on the bankable feasibility study completed by Wardell Armstrong of the UK in 2007.
GRD/Minproc will update and optimise the study by March 2010, with the aim of improving gold recovery and concentrate grades.
Kentor holds an option to purchase an 80% interest in Andash.
Commenting on the announcement, Kentor Managing Director, Simon Milroy said:
Kentor's financial, technical and legal due diligence on Andash has shown the project to be economically robust and technically feasible.
The previous study points to low costs and high margins. However, we need to refresh the capital and operating cost estimates and believe that there is potential to improve the metallurgical performance through finer grinding and the use of different reagents.
With our long established, highly regarded, on-the-ground presence in the Kyrgyz Republic, we are well placed to develop Andash.
Andash is located in the Tien Shan Gold Belt, one of the world's major gold provinces spanning central Asia.
Encouraging results from initial exploration near the current resource indicate the potential for considerable expansion and mine life extension.
The purchase price of US$10M for the Project under the option equates to US$10/oz gold equivalent.
The cash cost from the previous study estimated an operating cost of US$223/oz gold equivalent.
The low production cost is due to the near surface deposit with a proposed strip ratio of 0.8:1, simple processing and existing infrastructure including low cost power and an available workforce.
A separate option has been secured to purchase an already assembled mining and construction fleet for US$5M.