Central Asia Metals Interim Results
Central Asia Metals plc, a mining and exploration organisation with operations in Kazakhstan and Mongolia and a parent holding company based in the United Kingdom, announces its unaudited results for the six months ended 30 June 2011.
Highlights
Kounrad SX-EW project (‘Kounrad')
$28.8 million committed and spent to date and project forecast to be completed within $47 million budget.
Construction 60% completed on site with Mechanical Completion scheduled for late December 2011.
o All earthworks (solution ponds, collection trenches and concrete foundations) completed;
o All key infrastructure improvements (Power, Rail and Water supply) substantially completed
o All SX-EW plant equipment, structural steel and panelling fully manufactured and in the process of delivery to site for installation;
o Structural steel and panelling to be delivered to site by the end of September 2011.
Exploration focussed on a JORC compliant resource statement for all the Kounrad dumps commenced during the period and is expected to be completed by the end of 2012.
Kounrad pilot plant moved to sulphide dumps and testing commenced in July 2011.
Negotiations at an advance stage for the sale of the copper off-take from 2012.
Mongolia (Alag Bayan, Handgait, Ereen)
Planned exploration works at Alag Bayan completed
o IP anomalies identified by additional geophysical survey undertaken by GoviEx;
o 3 holes drilled;
o Assays returned low trace amounts of copper with no economic mineralisation intercepted;
o Negotiations remain on-going with GoviEx regarding drilling an additional two holes to test geological structures to the east and north of the licence area.
1,500 metre drilling programme commenced at Handgait in September
Ereen currently in exclusive due diligence period with potential purchaser.
Financial
Consolidated net loss down from $4.9 million (H1 2010) to $1.8 million (H1 2011).
Group cash as at 30 June 2011 of $33.2 million with no outstanding debt.
Nick Clarke, Chief Executive Officer, commented
"This has been a productive period for the Company and I am extremely pleased with the progress made at Kounrad, where we are targeting completion of construction by the end of 2011. We have consistently remained on track to deliver the 10,000 tonne per annum SX-EW facility on budget.
The focus of management continues to be on Kazakhstan where commissioning of Kounrad will commence during Q1 2012 and we anticipate that within six months the SX-EW plant will be up to full production of 10,000 tonnes per annum of copper cathode. We expect to complete negotiations for the sale of copper cathode from Kounrad via an off-take contract, which will provide a source of cash flow for the Company from 2012 onwards."
Highlights
Kounrad SX-EW project (‘Kounrad')
$28.8 million committed and spent to date and project forecast to be completed within $47 million budget.
Construction 60% completed on site with Mechanical Completion scheduled for late December 2011.
o All earthworks (solution ponds, collection trenches and concrete foundations) completed;
o All key infrastructure improvements (Power, Rail and Water supply) substantially completed
o All SX-EW plant equipment, structural steel and panelling fully manufactured and in the process of delivery to site for installation;
o Structural steel and panelling to be delivered to site by the end of September 2011.
Exploration focussed on a JORC compliant resource statement for all the Kounrad dumps commenced during the period and is expected to be completed by the end of 2012.
Kounrad pilot plant moved to sulphide dumps and testing commenced in July 2011.
Negotiations at an advance stage for the sale of the copper off-take from 2012.
Mongolia (Alag Bayan, Handgait, Ereen)
Planned exploration works at Alag Bayan completed
o IP anomalies identified by additional geophysical survey undertaken by GoviEx;
o 3 holes drilled;
o Assays returned low trace amounts of copper with no economic mineralisation intercepted;
o Negotiations remain on-going with GoviEx regarding drilling an additional two holes to test geological structures to the east and north of the licence area.
1,500 metre drilling programme commenced at Handgait in September
Ereen currently in exclusive due diligence period with potential purchaser.
Financial
Consolidated net loss down from $4.9 million (H1 2010) to $1.8 million (H1 2011).
Group cash as at 30 June 2011 of $33.2 million with no outstanding debt.
Nick Clarke, Chief Executive Officer, commented
"This has been a productive period for the Company and I am extremely pleased with the progress made at Kounrad, where we are targeting completion of construction by the end of 2011. We have consistently remained on track to deliver the 10,000 tonne per annum SX-EW facility on budget.
The focus of management continues to be on Kazakhstan where commissioning of Kounrad will commence during Q1 2012 and we anticipate that within six months the SX-EW plant will be up to full production of 10,000 tonnes per annum of copper cathode. We expect to complete negotiations for the sale of copper cathode from Kounrad via an off-take contract, which will provide a source of cash flow for the Company from 2012 onwards."
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