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Central Asia Resources to commence Kazakhstan gold mining in September

Central Asia Resources to commence Kazakhstan gold mining in September

Central Asia Resources (ASX: CVR) remains on track to commence mining at its 90% owned Dalabai Gold Project in September, and to start producing gold in the fourth quarter 2011.

The company has recently achieved several development milestones. These include 15,000 tonnes of ore at 1.15 grams per tonne (g/t) gold from mining by previous owners which is stockpiled and ready for crushing.

Also, a crushing circuit has been installed and successfully tested, and the processing plant construction is on schedule.

Angela Pankhurst, managing director, said “the delivery of any project on time and on budget is unusual. That we are on target to achieve this for our first project is a testament to the skills and effort of Chris Campbell-Hicks, Erulan Kanapyanov and our whole team in Kazakhstan.”

In June Central Asia Resources increased the gold JORC Indicated and Inferred Resources by 28% to 124,000 ounces at the Dalabai gold project.

The upgrade boosted Central Asia's gold JORC Resource total to 1.285 million ounces.

The company is forecasting the mine to produce annually 20,000 gold ounces and 140,000 silver ounces for 2.5 years.

Financial estimates for the mine have cash costs at US$545 per gold ounce, with a US$10.7 million capex and net cash flow undiscounted at US$37.7 million, providing very handy margins for Central Asia.

The potential production outcome of the Dalabai mine for Central Asia is that the short term cash flows can then be used to advance the company's other four projects in the country.

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