CAG unveils results from Kazakstani prospects

Central Asia Goldfields (CGZ-M) has released encouraging drill results from winter drilling on the Ashiktas and Ortasay gold prospects in Kazakstan (T.N.M. March 24/97).

At Ashiktas, the first hole reported from an ongoing program hit a 20-metre intersection (from 118 to 138 metres) grading 3.1 grams gold per tonne.

A trench which Central Asia dug at Ashiktas above Soviet-era drill holes, returned 1.3 grams gold over 35 metres — a distance the company believes represents the true width of the mineralized zone. The best Soviet intersection assayed 13.3 grams gold over 36.2 metres at a depth of 70 metres.

At Ortasay, with holes 12 and 13 completed, the company ended a 15-hole, first-stage drill program designed to test a 3.5-by-4-km area of mineralization.

Two gold-bearing zones were found in hole 13 — one consisting of 3.9 metres (from surface) grading 0.5 gram gold, and the other consisting of 7.7 metres (from 65 to 72.7 metres) grading 1.2 grams gold.

Central Asia also holds a 25% interest in the Gold Pool joint venture in Kazakstan, managed by junior Kazakstan Goldfields (KGFC-C). In late March, a 24-kg shipment of gold belonging to the Toronto-based company left Kazakstan for refining in England.

Since December, Kazakstan Goldfields has made four shipments of gold totalling 161 kg from the former Soviet republic. The company manages the Aksu, Jolimbet and Bestobe gold mines near Stepnogorsk.

A feasibility study by Kilborn SNC Lavalin is nearing completion for the installation of a carbon-in-pulp plant, as well as the modernization of the existing flotation facility at Aksu. The upgraded mill complex would process reserves from Aksu, as well as material from the other mines.

The modernization is expected to reduce operating costs to about US$214 per oz. Upgrades at the plant are projected to result in a production increase to 175,000 oz. in 1998, with staged increases up to an estimated 330,000 oz. by 2000.

In addition to operating the three mines, Kazakstan Goldfields has two large exploration licences totalling 3 million acres in Kazakstan, including one near the large Vasilkovskoye gold deposit.