Ivanhoe fires up Bakyrchik

After a 5-year hiatus, the Bakyrchik gold mine in northeastern Kazakstan is once again pouring gold.

On a daily basis, Ivanhoe Mines (IVN-T) is tapping 500 tonnes of stockpiled material left over from previous operations. Open-pit mining at the Globoki Log and Sarbas oxide deposits is expected to follow in the second quarter of 2002.

Resources are pegged at 2 million tonnes grading 3 grams gold per tonne. However, selective mining should add another gram to initial headgrades. Annual production is forecast at 20,000 oz.

Ivanhoe operates and owns a 70% stake in the mine but is entitled to 100% of the cash flow until it recoups its initial investment. The remaining interest is held by the government of Kazakstan.