Central Asia strikes deal with Glencore subsidiary

THE BOURSE WHISPERER: Perth-based gold explorer and developer Central Asia Resources has reached an agreement with Kazzinc, a subsidiary of major mining house Glencore, to enable it to sell gold produced from its Dalabai gold project in Kazakhstan.

In addition to the agreement with Kazzinc, Central Asia has also received its own export permit to sell gold from the Kazakhstan Government.

Central Asia said the combination of the agreement with Kazzinc as well as the export permit will enable it to consider and cost all options in determining the most cost-effective and efficient method of selling its gold.

Central Asia recently used its agreement with Kazzinc for its first sale as it allows the sale of gold without the necessity of an export permit.

“Revenue from this sale is expected within ten days,” Central Asia said inits ASX announcement.

“Central Asia will inform the market of the full details of the initial sale in the coming weeks.”

Central Asia has been processing resin at the Dalabai project since February and had recently deposited 500 ounces of gold in the company’s bank vault in Kazakhastan.

 

Primary crushed ore being conveyed at Dalabai. Source: Company

The company has also achieved an important milestone in terms of production ramp up at Dalabai where the mine is consistently crushing and stacking in excess of 1,000 tonnes of ore per day.

“Given ore grade and recoveries, this moves the company closer to its preliminary goal of producing 1,000 ounces of gold per month,” Central Asia said.

“This is 50 per cent of Dalabai’s optimal capacity.”

The company indicated it would provide detailed cash costs when Dalabai reaches nameplate production.