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Central Asia restarts Dalabai on loan facility

Central Asia restarts Dalabai on loan facility

Photo by Bloomberg

23rd May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Central Asia Resources has restarted operations at its Dalabai heap leach gold project, in Kazakhstan.

The commissioning of the Dalabai operation followed after Central Asia Resources received the first tranche of the Halyk Bank loan facility, consisting of $930 000.

“Securing funding from Halyk has been a lengthy but critical stage for the restart of gold production, and for the resumption of trading of Central Asia shares on the ASX,” said company CEO Peter Thompson.

To sustain the restart of operations at Dalabai, the second tranche of the Halyk Bank loan facility, of some $1.58-million, would be supplemented by an Australian equity fundraiser as part of Central Asia Resource’s efforts to relist on the ASX.

Thompson said that the Dalabai project was now largely technically de-risked as a result of the extensive trial mining and stockpile treatment projects undertaken since 2011.

Dalabai has been on care and maintenance since the end of last year, as Central Asia Resources looked to secure funding to upgrade the plant.

The loan facility secured from Halyk Bank would allow for the purchase of a second cone crusher, a resin desorbtion and electrowinning circuit and a third leach pad.

It was hoped that the project could be restarted to produce at a rate of 1 500 oz/m.

Edited by Creamer Media Reporter

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