Altyn Plc, formerly GoldBridges Global Resources Plc, reduced gold output by 29.4%

MINEX FORUM | April 3, 2017 | Views: 86

Altyn Plc, formerly GoldBridges Global Resources Plc, the mining and development company with gold Sekisovskoye project in Kazakhstan announced  its operational update for the full year ended 31 December 2016.

Altyn Plc produced 10,970 oz of gold (341.2 kg) in 2016, comparing with 15,534 oz (483.2 kg) in 2015 and 16,520 oz (513.8 kg) of silver comparing  with 26,608 oz (827.6 kg) in 2015. The company sold 12,602 oz (392 kg)  of gold in 2016,  and 9,890 oz (307.6 kg) in 2015.

H2 2016 gold production was 7,276 oz compared to production of 3,694 oz.

Key Metrics

Unaudited key operating statistics for the year ended 31 December 2016

2016

2015

Mining – underground

Ore Mined

tonnes

100,763

79,276

Average Gold Grade

g/t

2.70

2.55

Average Silver Grade

g/t

3.76

3.70

Mining processing

Ore Milled

tonnes

262,546

566,664

Gold Recovery Rate

%

80.2%

76%

Silver Recovery Rate

%

73.5%

64.9%

Gold Produced

oz

10,970

15,534

Silver Produced

oz

16,520

26,608

 Operational Update

The overall low production levels of 2016 have to be seen in the context of the continuing development of the mine, and are a direct consequence of the resources being used to build a platform to bring the underground mine into production.

In the second half of the year the company achieved primarily thanks to the acquisition of new equipment (LHD and underground dump trucks), as well as the launch of a second transport decline, which significantly reduced the haulage distance to the processing plant. In early 2017, the company acquired another LHD (3 m3) produced by Fambition, PRC, which is expected to be operational in April 2017. Further acquisitions of capital expenditure are anticipated in the near term to further enhance productive capacity including another 30-ton truck.  The total capital expenditure in 2017 is expected to be in the region of about US$15m, primarily for the purchase of underground equipment (ore handling equipment). Realisation of these investments will allow the production at a run rate  of 40-45koz of gold in 2017.

The upgrade of the underground ore processing technology, as well as the reduction of the share of low-grade quarry ore, contributed to an improvement in the extraction rates in the factory in 2016 (+ 4% compared to 2015). In the second half of 2016, the company achieved a target of 82% in the gold recovery rate. The introduction of the gravity enrichment stage, planned for the second half of this year, will further increase this figure.

Based on the unaudited results for the year and given the low level of production the cash cost of production is estimated to be at f US$900oz – US$1050oz (2015 US$837oz) level.  The total cash cost including general and administrative expenses, is estimated to be in the region of US$1,350 – US$1,450oz (2016 US$1,263oz).  These figures are distorted due to the low level of production and are expected to reduce progressively each year as the production rises.

In May 2016 the Company acquired an exploration licence in Karasuyskoye, the preliminary results of operations of the exploration are very encouraging.  One prospective area within Karasuyskoye which has been tested has revealed silver deposits with grades as high as 980 g/t. In addition, there was a high probability of co-mineralisation represented by bismuth, zinc, and tellurium. The initial estimates are that the ore resources may be substantial and in particular, the silver resources may amount to in excess of 340 tons, with an average silver grade of 60 g/t, and indeed may be substantially higher.  The Company has collected a large number of silver samples in order to perform further detailed scientific testing. In the prospective area known as Glyaden within Karasuyskoye we identified mineralisation containing economic gold grades from 0.73g/t to 6.38g/t. With further work exploration planned in this area the initial results are very encouraging.

The Altyn Plc’s controlling shareholder is African Resources Limited. which is owned by Assaubayevs. CEO of Altyn Plc is Aidar Assaubayev.

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