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Manas’ Shambesai project development costs set at A$41m

27th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A bankable feasibility study (BFS) for gold developer Manas Resources’ Shambesai project, in the Kyrgyz Republic, has confirmed the project’s low-cost, high-margin parameters and that it could be developed within a relatively short time frame.

Manas reported on Monday that a capital investment of some A$41-million would be required to recover some 227 000 oz of gold over a four-and-a-half-year life-of-mine.

This production figure was based on proven and probable reserves of 2.54-million tons at 3.4 g/t gold and would deliver a yearly throughput of more than 550 000 t of ore to produce an average of 50 000 oz/y of gold.

The project would deliver a net cash flow of some $148-million after capital, taxes and royalties and would have a net present value of some $105-million and an internal rate of return of 67%.

“We are extremely pleased with the positive outcome of the BFS for Shambesai, which has confirmed, following independent review, as expected, a technically low-risk and highly-profitable operation, which is expected to pay back all capital requirements within the first year of production,” said Manas MD Stephen Ross.

He noted that the completion of the full BFS allowed Manas to continue pursuing project financing opportunities with a greater degree of confidence in attracting the most commercially beneficial terms possible.

“We are also encouraged by the recent open support of the Kyrgyz media from the government of the Kyrgyz Republic for the development of the Shambesai gold project,” Ross added.

Further, he noted that Manas was continuing to meet its internal schedules to complete licensing and permitting for 2013, which would allow construction to start in early 2014 and the first gold pour to occur in the last quarter of 2014.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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