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Q3 2017 Operations Update

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RNS Number : 4795S
Central Asia Metals PLC
03 October 2017
 

3 October 2017

 

CENTRAL ASIA METALS PLC

("CAML" or the "Company")

Q3 2017 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q3 2017 operations update for the Kounrad dump leach, solvent extraction and electro-winning ("SX-EW") copper recovery plant in Kazakhstan ("Kounrad") and an exploration update for the Shuak property ("Shuak").

Summary:

·     Q3 2017 copper production, 3,842 tonnes (Q3 2016: 4,102 tonnes)

·     Q3 2017 copper cathode sales, 3,795 tonnes (Q3 2016: 4,291 tonnes)

·     On course to achieve upper end of 2017 production guidance of between 13,000 and 14,000 tonnes

·     Shuak drilling programme nearing completion

·     Proposed acquisition of Lynx Resources

 

Kounrad Q3 2017 production

Kounrad Q3 copper production of 3,842 tonnes brings output for the first nine months of 2017 to 10,869 tonnes.  

In April 2017, the Company began irrigating the Western Dumps and, during Q3 2017, 2,179 tonnes of copper cathode have been recovered. Cumulatively, 3,480 tonnes of copper have now been recovered from the Western Dumps, representing 46% of total Q2 and Q3 production since this area has been under leach.

Q3 2017 copper cathode sales of 3,795 tonnes bring the nine month total to 10,665 tonnes. The copper was sold predominantly through CAML's offtake partner, Traxys.

Shuak

CAML is nearing completion of its 2017 Shuak drilling programme. The core hydrotransport (CHT) drilling programme has finished, with 17,500 metres having been drilled, and the 5,200 metre diamond drilling programme is 90% complete. To date, almost 11,000 samples have been sent to the laboratory.

Proposed acquisition of Lynx Resources

On 22 September 2017, CAML announced its intention to acquire Lynx Resources, owner of the Sasa zinc-lead mine in Macedonia, and associated $153.5 million equity issue to part-finance the $402.5 million acquisition. Completion of this transaction is expected in Q4 2017.

Nick Clarke, Executive Chairman, commented:

"Kounrad's Q3 copper output demonstrates that we are on course to achieve annual production towards the upper end of the 13,000 to 14,000 tonne guidance range. We are pleased that copper production from the Western Dumps is also in line with our expectations. The acquisition of Lynx Resources will be transformational for CAML, creating a diversified and low cost base metals business, and we look forward to integrating the operations of the Sasa mine in Q4 2017."

For further information contact:

 

Central Asia Metals plc                                                                Tel: +44 (0) 20 7898 9001

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 3167 7221

Peter Krens       

Blytheweigh (PR Advisers)                                                          Tel: +44 (0) 20 7138 3204

Tim Blythe

Camilla Horsfall

Megan Ray

Note to editors:

 

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in central Kazakhstan. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. The company's proposed acquisition of Lynx Resources is expected to complete in Q4 2017. 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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