Juniors forge ahead with exploration in Kazakhstan

Several Canadian juniors have announced work programs and financing deals for properties in Kazakhstan.

Among the companies active in the former Soviet territory is Kazakhstan Goldfields, a 50%-owned subsidiary of Central Asia Goldfields (CGZ-M). The junior has just reopened three gold mines in the Stepnogorsk district — the Aksu, Bestobe and Zholymbet.

The trio, for which total proven and probable reserves exceed 6.5 million tonnes grading 7.8 grams gold per tonne, is currently operating at a rate of 1,400 tonnes per day, but Kazakhstan Goldfields hopes to double this rate to 2,750 tonnes by mid-November.

At the higher rate, annual production is expected to total 155,000 oz. gold at an average operating cost of US$185 per oz.

To finance the expansion and upgrade possible reserves of 2.5 million tonnes averaging 13.9 grams, Kazakhstan Goldfields is proceeding with a $14-million private placement of shares and warrants.

The junior is also drilling two gold-bearing sulphide zones on the Turan gold prospect, 30 km to the northwest and along the same structural trend as the huge Vasilkovskoye prospect coveted by First Dynasty Mines (FDM-T) and Teck (TEK-T).

These two Vancouver-based companies recently became equal partners in a venture to acquire Vasilkovskoye, following First Dynasty’s agreement to buy out U.K.-based Bakyrchik Gold. Teck and First Dynasty are still negotiating for the right to develop the gold deposit, where minable reserves are estimated to be 100 million tonnes grading 2.4 grams gold.

Meanwhile, World Wide Minerals (WWS-T) plans to raise up to $23.5 million to develop the Tselinny uranium project and explore other propsects in Kazakhstan and elsewhere.

To secure the financing, World Wide will issue 15-20 million special warrants at $1.25 per special warrant. Each special warrant would be exchangable into one unit consisting of one common share and half a common share purchase warrant. Each full purchase warrant would be convertible into one common share at a exercise price of $1.75 per share for one year and $2 in the second.

World Wide has a 90% interest in Tselinny, where several underground mines reportedly host reserves of 103 million tonnes averaging 0.1% uranium.

Finally, Ursa Major International (URSA-C) says it has outlined a broad zone of alteration and mineralization on the southeastern flank of its 56.6%-owned Koktasjal copper-gold porphyry project.

The company intends to drill-test the new mineralization once a 4-rig program is complete. The program is designed to confirm copper grades, define gold distribution and test for deep extensions of the main deposit.

Koktasjal contains inferred resources of 57 million tonnes grading 0.62% copper, 0.71 gram gold and 2.76 grams silver to a depth of 305 metres.

Ursa Major has also completed a magnetometer and geochemcial survey over the property to outline other prospects, and it has sent a bulk sample to Lakefield Research to test the feasibility of using solvent

extraction-electrowinning technology in conjunction with leaching, as a means of recovering gold at Koktasjal.