THE BOURSE WHISPERER: Central Asia Resources has postponed final commissioning and production from its Dalabai gold project in Kazakhstan until late January 2012 due to issues with cyanide supply.
The initial commissioning of the Dalabai project has been completed successfully, however the final commissioning will commence when cyanide is received, which the company said it expects during the third week of January 2012.
“This is a short term set back.” Central Asia Resources managing director Angela Pankhurst said in the company’s announcement to the Australian Securities Exchange.
“Changes to regulations in Kazakhstan to tighten controls over industrial chemicals have resulted in a temporary shortage of cyanide in Kazakhstan, our order is awaiting customs clearance and potential alternate suppliers have now been exhausted.”
Central Asia said mining had ceased at the project, however this is a planned interruption to coincide with the New Year break.
Crushing and stacking continues on stockpiled ore and partially processed ore from operations by the previous owners.
Approximately 80,000 tonnes of gold at around 1.5 grams per tonne is expected to be stacked ready for processing when production commences.
“We originally planned to have around 45,000 tonnes stacked to commence heap leaching, we will now have at least 75 per cent more stacked, increasing initial production and revenue,” Pankhurst said.
“We are finalising a banking facility to cover working capital so that operations can continue as planned.
“We started and completed development, and started mining in 2011, we now look forward to commencing production in January 2012.”