TIDMCAML
RNS Number : 8624P
Central Asia Metals PLC
22 November 2016
22 November 2016
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
Agreement signed to acquire Shuak copper property in
Kazakhstan
Central Asia Metals plc (AIM: CAML) is pleased to announce that
it has today signed a framework agreement at the third
UK-Kazakhstan Inter-Governmental Commission (IGC) to acquire an 80%
effective interest in the subsoil use contract (SUC) for the Shuak
copper exploration property in northern Kazakhstan.
Summary
-- Framework agreement signed to acquire SUC for Shuak copper
exploration property in Kazakhstan from local company
GRK-Aksu.
-- Agreement signed at the ICG, in the presence of Mr Yerlan
Khairov, Vice Minister of Investments and Development,
Republic of Kazakhstan and The Rt Hon Greg Hands MP, Minister
of State for Trade and Investment of the UK.
-- Total consideration of $2 million to be invested by CAML
in exploration activities.
-- Shuak extensively explored during Soviet period.
-- Pre-GKZ (State Commission on Mineral Reserves) resource
of 327,000 tonnes of contained copper at a grade of 0.66%
Cu.
The Shuak property
Shuak is a copper and gold exploration project in the Akmola
Oblast region of north Kazakhstan, approximately 300 kilometres
north of the capital city, Astana, and 40 kilometres north east of
the regional centre, Stepnogorsk.
The licence area is 197km(2) and contains three target areas
that warrant immediate and detailed exploration for copper and
gold. The area hosts two mineralisation styles that are of
particular interest to CAML. These are:
- saprolite hosted oxide and enriched copper, gold and molybdenum
mineralisation that may be amenable to copper production
by solvent extraction - electro winning (SX-EW) processing,
and;
- copper, molybdenum and gold bearing dissemination and
stockwork mineralisation of a porphyry nature.
In addition, there are widespread copper, gold, silver and
molybdenum geochemical anomalies within the licence area.
The Shuak property was explored between 1973 and 1991, with
historic work including geochemistry, geophysics, trenching and
drilling at the site. During this time, over 45,000 metres of
diamond holes were drilled and resource estimation to historic
Soviet standards was undertaken. This demonstrated a pre-GKZ
resource at Mongol V, CAML's priority copper oxide exploration
target area, of c.49.5 million tonnes at a grade of 0.66% Cu for
approximately 327,000 tonnes of contained copper in both C2 and P1
categories.
Around 8km(2) of metalliferous saprolite has been identified
within the licence area, with thicknesses varying from minimal to
in excess of 60m in depth. Most recently, former owners of the
property undertook small scale mining at Mongol V and sampling of
the stockpile generated from these mining activities demonstrated
copper oxide grades in excess of 2% in several cases. Column leach
testing of this saprolitic material at CAML's Kounrad facility has
shown it to be amenable to processing by leaching with dilute
sulphuric acid, with copper recoveries of over 90%.
2017 exploration programme
CAML intends to commence field-based exploration work,
predominantly at Mongol V, in Q2 2017. During the 2017 exploration
season, the Company plans to design an approximately 1,800 metre
trenching programme and to undertake approximately 8,000 metres of
drilling at Mongol V and other priority areas. CAML's 2017
exploration budget for Shuak is approximately US$1 million.
The framework agreement
Under the terms of the framework agreement, CAML will hold an
effective 80% interest in Ken Shuak LLP, the Company which is to
hold the Shuak SUC, with 20% effectively being held by local
partners. The consideration for this acquisition is an investment
in exploration activities of US$2 million over five years, subject
to continued positive results from exploration activities and the
general economic outlook for commodity prices. This agreement is
conditional on the official transfer of the SUC by the Ministry for
Investments and Development, Republic of Kazakhstan to Ken Shuak
LLP.
Gavin Ferrar, Business Development Director, commented:
"We are delighted to have agreed terms to acquire a majority
stake in Shuak, which we have identified as an attractive
opportunity given its location and economic prospects. We believe
the project can be rapidly appraised to ascertain its copper oxide
resource potential. Given our success to date at Kounrad, our
initial target would be to develop another similar SX-EW operation
at Shuak. Longer term, we also plan to explore the primary copper
porphyry target at depth.
"We have built our business around our successful copper
production facilities at Kounrad and are very comfortable operating
in Kazakhstan. We are pleased to have been able to extend our
footprint in Kazakhstan with this acquisition, and to begin to
progress the Shuak property."
For further information contact:
Central Asia Metals plc Tel: +44 (0) 20 7898 9001
Gavin Ferrar, Business Development
Director
Nick Clarke, Executive Chairman
Nigel Robinson, CFO
Louise Wrathall, Investor Relations
louise.wrathall@centralasiametals.com
Peel Hunt (Nominated Adviser & Joint
Broker) Tel: +44 (0) 20 7418 8900
Matthew Armitt
Ross Allister
Mirabaud Securities (Joint Broker) Tel: +44 (0) 20 7878 3362
Peter Krens
Bell Pottinger (PR Advisers) Tel: +44 (0) 20 3772 2500
Lorna Cobbett
Aarti Iyer
Marianna Bowes
Qualified Person Statement:
The technical information contained in this announcement has
been reviewed and approved by Nick Clarke, CAML Executive Chairman,
a qualified Chartered Engineer and member of the Institute of
Materials, Minerals and Mining (MIMMM), and agrees to the inclusion
in the announcement of the matters based on the information in the
form and context in which it appears. It should be noted that the
references to historic resources prepared to Soviet C2 and P1
standards are not in accordance with an AIM approved standard.
Note to editors:
Central Asia Metals, an AIM-listed UK company based in London,
owns 100% of the Kounrad SX-EW copper project in Kazakhstan. The
Company also has a 75% equity interest in Copper Bay Ltd, which is
a private company conducting a definitive feasibility study at its
copper project in ChaƱaral Bay, Chile. For further information,
please visit www.centralasiametals.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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