KG reports first shipment of gold

The first shipment of gold was made by Kazakstan Goldfields (KGFC-C) from its mines in north-central Kazakstan.

The company (KG), which took over management of the then-dormant Aksu, Jolymbet and Bestobe mines last year, shipped 2,500 oz. gold to London in late December 1996. This was followed, earlier this month, by an additional 1,000 oz. A further 2,500 oz. have been transported to a local refinery.

Currently, 4,500 tonnes of flotation concentrates (containing 7,500 oz. gold) are being processed at the Balkash smelter in eastern Kazakstan. But because the smelter has a limited capacity and can handle only 100 tonnes per day of the mines’ production, KG has decided to accelerate its plans to acquire and install a carbon-in-leach (CIL) facility capable of processing production from all three mines. Recent metallurgical test work indicated that gold recoveries of 90-93% can be achieved with the CIL process.

A feasibility study to implement the conversion to a carbon-in-leach operation is under way. In the meantime, the company has elected to suspend mining at the Aksu and Jolymbet operations until the study is completed.

To offset the reduced production from these two mines, KG has increased operations at the Bestobe mine, with emphasis on production from high-grade, free-milling gold veins (gravity concentrate).

Bestobe will continue to produce 50-100 tonnes of high-grade flotation concentrate per day. By March, the company expects that Bestobe will produce 4,500 oz. gold per month (half of that amount in gravity concentrates) at an all-in cost of US$285 per oz.

KG has a 75% interest in the project, with the remainder held by Central Asia Goldfields (CGZ-M).

The latter company is also exploring mineral prospects in the country, including the Raigorodok North gold prospect. The latest hole drilled on this prospect returned 12.3 metres grading 1.59 grams gold per tonne (from 40.6 to 52.9 metres) and 54.12 metres of 2.08 grams gold (from 138.8 to 193 metres).

Central Asia is continuing to drill the property and, once this work is complete, will recalculate reserves. Previous Soviet data suggest the resource at Raigorodok North contains at least 2 million oz. gold.

Meanwhile, at its South Ashiktas property in central Kazakstan, the company will carry out drilling in an attempt to confirm previous Soviet data.

Drilling is also scheduled for the Novodneprovksoe project, north of Raigorodok, which hosts five gold-bearing zones to a depth of 140 metres containing an estimated resource of 400,000 oz. gold (at an average grade of 11.8 grams).