Kyrgyz Republic
Andash Project
The Andash copper-gold project is situated in the Central Asian Orogenic belt, within relative proximity to world-class projects including Muruntau (110moz), Almalyk (80moz AuEq) and Oyu Tolgoi (>50Moz AuEq).
Andash contains a Measured and Indicated Resources (2006) estimated at 19.2mt @ 1.1g/t Au and 0.4% Cu. A reserve estimate of 16mt @ 1.05g/t Au and 0.4% Cu was published in 2007 and utilised for the basis of a feasibility study completed in March 2010 by Kentor Gold Ltd.
An updated Definitive Feasibility Study (DFS) published by Kentor Gold in 2010 assumed an open-cut mine, with low strip ratio (0.7:1) and low dilution (5%). A starter pit processing higher-grade sulphide ore at up to 1.5mtpa for the first 18 months was scheduled, followed by mine processing at a rate of 3mtpa. A total of six years of mining, and 7 years processing was determined.
Capital cost for Phase 1 of the project (1.5mtpa ramp-up) was estimated at US$102.4m, with a further US$40m required for capacity increase to 3mtpa, and working capital. The initial cost of the process plant was estimated at US$63.5m. It is worth noting sensitivity to commodity prices, with application of US$3.50/lb Cu and US$1,300/oz gold delivering a US$215m NPV according to the 2010 DFS.