Hambledon Mining to boost gold output in Kazakhstan to 100,000 oz by end-2017
ASTANA. April 19 (Interfax) - Hambledon Mining plc is planning to increase gold production at Sekisovka deposit in East Kazakhstan to 100,000 oz by the end of 2017, the company's CEO Tim Daffern said.
"The mine, which was put into operation recently, currently produces 21,000 oz of gold. We expect the gold output to reach 100,000 oz a year by the end of 2017," he said Thursday in Astana at the 3rd Forum "MINEX Central Asia 2012."
Hambledon Mining currently develops the Sekisovka gold deposit in Kazakhstan. Last year the company also sealed an agreement to purchase a 100% stake in Kazakhstan-based Akmola Gold LLP which holds licenses for development of Tellur and Stepok gold deposits that lie in the center of the republic.
Daffern said the company planned to wrap up talks about purchasing the 100% stake in Akmola Gold LLP in the second half of 2012.
"We hope that the negotiations [with the Kazakh Ministry of Industry and New Technologies] will be over within the next three-four months," he said.
"Expenditures associated with this project will come to $5 million this year. We are going to employ engineers, find local construction contractors. Next year we will spend $20 million on construction, additional labor and new contractors," he said.
Currently, Akmola Gold LLP is owned by Central Asian Gold Corporation and Yerkin Sadykov on a parity basis.
The cost of the deal is $5 million. One half will be paid in cash, the other half in ordinary shares of Hambledon Mining. To allow the deal to go forward the government of Kazakhstan will have to waive its pre-emptive right of purchase.
Tellur and Stepok are located 140 km to the north of the capital Astana. The aggregate reserves of the deposits are estimated at 440,000 ounces of gold, not including silver and other metals. The estimate may be increased after further exploration of the deposits.
The reserves of Tellur are estimated at 140,000 ounces. Its development is expected to begin in the first half of 2013. Starting from mid-2014 the company plans to produce 20,000 ounces of gold per year at the deposit.
Stepok holds an estimated 300,000 ounces of gold and a significant amount of copper, lead and zinc. The development of the deposit will require additional exploration work and a bank feasibility study, which may take 3-4 years. Yearly production at the deposit may amount to 30,000 ounces of gold and 40,000 ounces of silver. The company does not rule out that after additional exploration the estimated reserves of the deposit may increase and annual production double to 60,000 ounces.