30 January 2011
30 January 2015
ASX / MEDIA ANNOUNCEMENT
December 2014 Quarterly Activities Report
Central Asia Resources (ASX: CVR) (the Company) is pleased to report on its activities on its gold projects in Kazakhstan, Central Asia for the Quarter ending 31 December 2014 (the Quarter).
HIGHLIGHTS
Dalabai Gold Operation suspended pending resolution of local debt
Alternative funding sources being sought
Sales of 145 oz gold, 1113 oz silver for the Quarter
Managing Director Peter Thompson said:
"Efforts to resolve the impasse with Halyk Bank on the stalled Dalabai project funding, and to find alternative lenders have continued."
OPERATIONS
Dalabai (90% owned)
The Dalabai Operation is located in the Chu Ili gold belt in southern Kazakhstan. Dalabai is located
2.5 hours drive from Almaty, with a major highway to the project.
Mining commenced in July 2014 but was halted in October 2014 due to delays with debt funding from Halyk Bank as previously announced.
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DECEMBER QUARTER PRODUCTION
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Ore Mined
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Nil
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Gold , Silver sales
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145 oz gold, 1113 oz silver
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Revenue from metal sales
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Nil (current value of anticipated sales is US$230,000 incl VAT)
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Waste Mined
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Nil
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Ore Crushed & Stacked
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Nil
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Table 1 Production Summary, Dalabai operation, December 2014 Quarter
No safety incidents were reported for the quarter from either employees or contractors.
311-313 Hay St, Subiaco, Western Australia 6008 PO Box 8282, Subiaco, Western Australia 6008
P: +61 8 6489 0600 F: +61 8 9388 3701
ABN: 13 113 816 158
Quarterly Activities Report
December 2014
Desorbtion Testwork
Testing of gold-rich leach solution from Dalabai with carbon rather than resin has shown 98% gold recovery to carbon. This is encouraging and confirms that carbon is a viable alternative to resin as an adsorbtion agent. The capex indicated for a carbon system is less than that for a resin system and could be procured and commissioned in a 3 month period. No modifications to the adsorbtion tanks at Dalabai would be required if carbon replaced resin as the adsorbtion medium.
Altyntas, Kepken and Kengir gold projects (95% owned)
The Altyntas project is located 500km north-west of Almaty in the Tien Shen gold province in Kazakhstan. It contains the Altyn Tas, Kepken and Kengir prospects, all located within 40km of Altyntas and to be evaluated as part of a regional Altyntas strategy.
An application for a 3 year extension of term of the Altyn Tas exploration licence has been submitted, along with a proposed work program. This work program was approved by the Exploration and Mining committee during October 2014 and the application will next be considered by the Geology Committee before being referred to the Ministry for approval. The Geology Committee has still not completed its deliberations, awaiting reports from 3 'external experts'.
CORPORATE Funding
Discussions with the Halyk Bank, with whom the Company established a debt facility for US$0.9m (Tranche 1) and $1.6m (Tranche 2), continue, and Halyk continues to request further financial analysis to 31 Dec 2014, which has been provided. The Company is engaged with both the regional branch office (loan source) and the head office in Almaty and discussions around a loan restructure continue.
Discussions with several Kazakh banks for replacement funding are ongoing.
The Company has commissioned consultants and is conducting meetings with interested corporate groups in order to advance the projects and Company.
Payment for the December quarter gold sale (145 ounces gold and 1,113 ounces silver) remains outstanding, although its value has increased due to the improved metal prices.
In order to reduce costs, the Company has closed its Almaty office and retains just 10 people on site at Dalabai to maintain systems and a 24 hour security presence.
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Quarterly Activities Report
December 2014
Competent Persons Statement
The information in this report that relates to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Peter Thompson who is employed by Central Asia Resources Limited. Mr. Thompson is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Thompson consents to the inclusion in the report of the matters based on information in the form and context in which it appears.
The information included in this report was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
Statements regarding Central Asia Resources' plans with respect to its mineral properties are forward-looking statements. There can be no assurance that Central Asia Resources' plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Central Asia Resources' will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Central Asia Resources' mineral properties.
For further information contact:
Peter Thompson
Managing Director
Central Asia Resources Ltd
Ph: (+61)0417 979 169 (Australia) (+7) 771 507 2936 (Kazakhstan)
[email protected]
Jason Campbell
Company Secretary
Central Asia Resources Ltd
Ph: +61 8 6489 0600
About Central Asia Resources
Central Asia Resources Limited (ASX: CVR) is focused on exploration, development and production of gold in Kazakhstan. The Company holds two license areas in Kazakhstan. These include four deposits with 2009 JORC Resources, all of which have exploration upside, and areas of significant prospectivity based on extensive exploration during Soviet times. The license areas are within recognised gold belts, and close to operating mines and infrastructure. Trial mining commenced at the first project, Dalabai in February 2012 using shallow open pit mining and heap leach technology. A Limited Restart of Dalabai operations was conducted during August 2013 to December 2013, with operations at Dalabai having been recommenced since.
Disclaimer
Certain statements included in this announcement may constitute forward looking information. This information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, commodity prices, exploration, acquisition, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by law.
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