Presentation on theme: "Development of deposits of gold in East-Kazakhstan area"— Presentation transcript:
1 Development of deposits of gold in East-Kazakhstan area «Altyn Dala Mining» LLP
2 The general data on the company Ownership type - The Limited Liability Partnership «Altyn Dala Mining».Share for sale – 50 – 100%.Registration date – March of 2005.The company holds subsoil use contracts for two gold deposits in Eastern Kazakhstan:Uba Contract Area – Contract №410 datedAshaly Contract Area – Contract №2098 datedThe company holds license for “Engineering and Operating in Mining Industry”.The company also provides geological consulting services in mining sector.Headquartered in Almaty. Regional offices are based in Ust-Kamenogorsk and Ridder.Employees - 58 people, including 20 geologists.
3 Uba Contract AreaThe Company is currently conducting an exploration work on placer gold deposit – “Uba exploration block” in accordance with Subsoil Use Contract No. 410 datedContractual area size is 2172 sq.km.The area contains number of gold halos and alluvial gold concentrations as well several placer gold deposits and perspective ores.Geological staff in place - 31 people.Main base is located in Ridder:Land in ownership – 0,187 hectares.Office and industrial space in ownership – 691 sq.meters.Number of own vehicles – 12 units.In 2006 the company has proven with GKZ (State Committee on Reserves) and put on the state balance kg of gold under C1+C2 categories
4 Resources and reserves of Uba Contract Area In 2008 the company by using Micromine® program conducted a reserve estimation and modeling of Phillipovka and Tikhaya river deposits located within Uba contract territory.As of today the company found 4736 kg of gold falling under C1+C2 category with an average grade of 6,43 grams per cubic meter.The total reserves and resources of Uba contractual area are summarized in a table below :C1C2P1P2total(kg)In placer gold4 11761912 3966 24723 378In ores1 5006 50011 70019 700In technogenic formations300Total by category (kg)2 42218 89617 94743 377To meet the minimum work program the company needs to invest at least 38 million tenge onto Uba contractual area. Anticipated result would be then commercial finding of gold on Filippovka and Tikhaya river banks and increase of reserves by at least 3000 kg.Additional investments of $2M into exploration above the minimum work program into Uba contractual area can lead up to kg increase of reserves under C1+C2 categories within two years.
5 The program of extraction Uba of a site To start the gold production on the deposit the following activities were performed as of today:The Feasibility Study for development of the field is completed in April 2007.Laboratory and semi-production tests were made in 2007.3,5 hectare land was acquired and zoned for processing plant and tailing.The technical study for application of graviton enrichment and tank leaching technology on Phillipovka and Tikhaya placer deposits was completed in 2008.Summarized financial model of development of Uba contractual areaForecast period123TotalGross RevenueEBITDANet ProfitCAPEXNet Cash Flow
6 Ashaly Contract AreaThe company carries out exploration of placer gold at Ashaly exploration block in accordance with Subsoil Use Contract No.2098 datedContractual territory - 206,3 sq.km.There are linear volcano-tectonic arc-like structures on the Ashaly Area formed of effusive and explosive products (mainly dacit) of volcanic activity. Today, Yuzhny Ashaly deposit is estimated as a deposit with substantial reserves, and it might be classified as large-scale type of deposits.Geological staff in place - 31 people.Office and industrial space –375 sq.m (rented).Number of own vehicles – 3 units.Volume of drilling made – more than 5000 m.Volume of mine work made – more than cub.m.
7 Resources and reserves of Ashaly Contractual Area Data about reconnoitered and probable reserves Ashaly of a site are resulted in the table:C1C2Р1Р2Total (kg)Yuzhny Ashaly6 574,718 838,78 616,034 029,4Teninsky5 172,0Daubaysky2 660,0Krasnaya Yurta120,0Byukuysky1 400,0Total by category (kg)24 010,712 796,043 381,4It requires 77 million tenge to meet the minimum work program at Ashaly contractual area. Expected result - the announcement of commercial finding at Yuzny Ashaly deposit and net increase of reserves by kg.Additional investments into exploration of Ashaly Contractual Area in the amount $2M may increase the gold reserves under C1+C2 of categories roughly by kg within two years.
8 Geological consulting services Number of employees - 12 people.Services rendered:studying the deposit geological structure; characterizing ore bodies; studying mining and geological, geotechnical and hydrogeological characteristics;developing surface process complexes, local projects and general layouts including non-utilizable waste sites, mine vehicles, open pit drainage areas, repair and storage facilities, electrical facilities, etc.;developing the feasibility study, occupational and fire safety programs, and cost estimates.Licenese No on design and operation of mine manufactures datedCompleted projects – more than 30.
9 «Altyn Dala Mining» Ltd Valuation Estimation and modeling of reserves by using Micromine® program conducted a in 2008Wardell Armstrong International (WAI) was contracted by Altyn Dala Mining to prepare a Competent Person’s Report of the assets held by the ADM.Results of study of other areas within the licensed territory were delineated to have more potential for placer gold mineralization and recommended for further exploration for large ore body gold occurrences.