THE BOURSE WHISPERER: Manas Resources (ASX:MSR) has received approval for a TEO study at the company’s 100 per cent‐owned Shambesai gold project in the Kyrgyz Republic, Central Asia.
A TEO study is the Russian interpretation for Justification of Technical and Economic Conditions.
Manas received approval for the study from the Mineral Reserves Commission acting on behalf of the State Agency for Geology and Mineral Resources (SAGMR), the controlling authority on mining issues for the Government of the Kyrgyz Republic.
The approval means Manas Resources is now entitled to apply for and receive a production license for the Shambesai gold project and commence the License Agreement process with SAGMR.
“I am extremely pleased with the support Manas has received from the Government of the Kyrgyz Republic in regard to this key approval and its desire to see gold production from Shambesai as soon as possible,” Manas Resources managing director Stephen Ross said in the company’s announcement to the Australian Securities Exchange.
“The Mineral Reserves Commission of the Kyrgyz Republic and SAGMR are incredibly supportive of the quick development of the Shambesai gold project and we look forward to delivering a low‐cost, high‐margin gold operation to the Kyrgyz Republic.”
The company explained that after the grant of the production license, a two‐stage License Agreement process begins.
License Agreement 1 requires preparation and assessment of the detailed mine and process design, including the Environmental and Social Impact Assessment (ESIA); as well as the issuing of the mining allotment (land allotment) and all the relevant operational and commercial permits based on the various sections of the approved detailed design and ESIA.
License Agreement 2 commences upon completion of all of the requirements and commitments from License Agreement 1 and will provide State authorization to proceed with construction and ultimately production from the Shambesai gold project.
Manas has been undertaking the ESIA work for a number of months now, including environmental monitoring for baseline submissions to the State Agency of Environment and Forestry.
Once License Agreement 2 and all relevant permits have been received, Manas is entitled to commence construction at Shambesai.
Shambesai is reported at a gold cut‐off grade of 0.5g/t gold;
Obdilla is reported at a gold cut‐off grade of 1.0g/t gold. Source:
Manas described the Shambesai gold project as a technically simple, low‐cost vat leach and heap leach operation.
It is projected to process 3.2 million tonnes of ore at 2.8 grams per tonne gold to recover 245,000 ounces of gold over 4 ½ years at life‐of‐mine cash costs of US$411 per ounce of gold.
Manas said it is currently negotiations in regard to debt financing options for the Shambesai gold project and has received positive interest from a number of well‐credentialed banks and mining finance institutions.