REG - Central Asia Metals - Q1 2018 Operations Update

Central Asia MetalsAnnouncement

12/04/2018 07:05

RNS Number : 6421K
Central Asia Metals PLC
12 April 2018
 

12 April 2018
 
CENTRAL ASIA METALS PLC
('CAML' or the 'Company')
Q1 2018 Operations Update
Central Asia Metals plc (AIM: CAML) today provides a Q1 2018 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in Macedonia ('Sasa').
Highlights
-      Kounrad
o  Q1 2018 copper production, 3,070 tonnes
-      Sasa
o  Q1 2018 zinc in concentrate production, 5,518 tonnes
o  Q1 2018 lead in concentrate production, 7,020 tonnes
-      Shuak
o  Encouraging assay results
o  2018 proposed $2.5 million exploration programme
 
CAML production summary




Metal production (tonnes)


Q1 2018


Q1 2017*




Copper


3,070


3,357




Zinc


5,518


5,289




Lead


7,020


7,286




*Q1 2017 zinc and lead production pre-date CAML ownership
Nick Clarke, Chairman, commented:
"These production results demonstrate a good start to the year at both Kounrad and Sasa. Taking seasonal variations in Kazakhstan into account, both of our operations are on track to achieve 2018 production targets, which are 13,000 to 14,000 tonnes of copper cathode, plus 21,000 to 23,000 tonnes of zinc in concentrate and 28,000 to 30,000 tonnes of lead in concentrate."
Kounrad
Kounrad Q1 2018 copper production is 3,070 tonnes. Total Kounrad copper production since operations commenced in 2012 is now 71,496 tonnes.
The winter period was the coldest experienced in five years, with a week in January averaging minus 38 degrees centigrade. The Western Dumps raffinate heating system that formed part of the Stage 2 Expansion programme worked well in its first winter of operation, with 2,302 tonnes of copper being leached from these dumps. This equates to 75% of total Kounrad Q1 2018 production.  
Copper sales during Q1 2018 were 2,527 tonnes.
Sasa
In Q1 2018, mined and processed ore was 192,372 tonnes and 196,364 tonnes respectively. The average head grades for the period were 3.32% zinc and 3.83% lead. The average metallurgical recoveries were 84.6% for zinc and 93.3% for lead.
Sasa produces a zinc concentrate and a separate lead concentrate that contains silver. In Q1 2018, 11,385 tonnes of concentrate containing 48.5% zinc and 9,587 tonnes of concentrate containing 73.2% lead were produced. 
Sasa typically receives from smelters approximately 85% of the value of its zinc in concentrate and approximately 95% of the value of its lead in concentrate. Accordingly, Q1 2018 payable production of zinc was 4,690 tonnes and of lead was 6,669 tonnes. Payable base metal in concentrate sales for the period were 4,584 tonnes of zinc and 6,726 tonnes of lead.   
During Q1 2018, Sasa sold 108,680 ounces of payable silver. Due to an existing streaming agreement with Osisko Gold Royalties, CAML's silver production has been pre-sold.  




 


Units


Q1 2018


Q1 2017*




Ore mined


t


192,372


191,939




Plant feed


t


196,364


192,773




Zinc grade


%


3.32


3.21




Zinc recovery


%


84.6


85.5




Lead grade


%


3.83


4.00




Lead recovery


%


93.3


94.4




Zinc concentrate


t (dry)


11,385


10,688




-      Grade


%


48.5


49.5




-      Contained zinc


t


5,518


5,289




Lead concentrate


t (dry)


9,587


10,333




-      Grade


%


73.2


73.1




-      Contained lead


t


7,020


7,286




*Q1 2017 Sasa production pre-dates CAML ownership
Shuak
Following completion of the Shuak 2017 exploration programme, CAML has now received all assay results for the diamond and core hydrotransport ('CHT') drilling undertaken.
The new areas of oxide mineralisation that have been identified at the Kyzyl-Sor prospect have an estimated average thickness of 46 metres at an estimated average copper grade of 0.32% based on CHT drilling, although these estimates will not form part of any resource estimation.
Core from diamond drilling demonstrated intersections in the oxide material such as 41 metres at a copper grade of 0.51% from a depth of 3 metres and 45 metres at a copper grade of 0.28% from a depth of 2 metres.
Examples of encouraging sulphide intervals are 23 metres at a copper grade of 0.94% from a depth of 55 metres and 32 metres at a copper grade of 0.72% from a depth of 81 metres.
The following table demonstrates some notable drilling results in oxidised material.




Prospect


Drill hole


From (m)


Intersection (m)


Cu (%)




Mongol V


MN1


3.0


47.0


0.29




Mongol V


MN2


0.5


49.2


0.24




Mongol V


MN5


0.4


18.6


0.24




Mongol V


MN14


6.0


24.7


0.28




Mongol V


MN15


0.6


20.1


0.23




Mongol North


MN9


4.9


13.1


0.15




Mongol North


MN13


14.6


33.4


0.26




Mongol I-II


MM2


0.2


13.9


0.39




Mongol I-II


MM2


25.8


15.9


0.36




Mongol I-II


MM4


0.5


58.3


0.44




Mongol I-II


MM9


21.3


54.7


0.22




Kyzyl-Sor


KS1


2.2


45.1


0.28




Kyzyl-Sor


KS2


31.1


10.5


0.22




Kyzyl-Sor


KS4


0.4


37.8


0.28




Kyzyl-Sor


KS6


5.0


59.0


0.13




Kyzyl-Sor


KS12


3.1


41.0


0.51




Kyzyl-Sor


KS13


5.5


50.8


0.26




Kyzyl-Sor


KS15


9.3


32.7


0.20




 
The following table demonstrates some notable drilling results in sulphide material.




Prospect


Drill hole


From (m)


Intersection (m)


Cu (%)




Mongol V


MN2


78.3


27.4


0.58




Mongol V


MN3


55.0


23.0


0.94




Mongol V


MN4


81.0


32.3


0.72




Mongol V


MN5


71.0


30.3


0.31




Mongol V


MN6


38.2


22.7


0.98




Mongol V


MN14


60.0


35.4


0.59




Mongol V


MN15


64.9


24.1


0.57




Mongol V


MN15


238.0


17.0


0.67




Mongol V


MN15


328.5


12.7


0.60




Mongol North


MN9


37.0


18.0


0.59




Mongol North


MN9


95.4


21.2


0.55




Mongol I-II


MM1


21.7


97.3


0.20




Mongol I-II


MM2


44.1


22.5


1.74




Mongol I-II


MM2


74.5


9.5


1.21




 
While these intersections are encouraging, CAML will undertake additional drilling and exploration in 2018 in order to better understand likely continuity or resource potential of the Shuak licence.
The table below highlights the $2.5 million proposed 2018 Shuak exploration programme.




 


South Shuak


Deep zones


Kyzyl-Sor


Mongol I


Mongol V


Total




CHT drilling (m)


6,000


 


7,500


1,200


1,000


15,700




Diamond drilling (m)


1,500


1,500


2,000


2,000


1,500


8,500




Geophysics, TEM-FAST (no. lines)


35


-


-


5


-


40




Geophysics, induced polarisation (no. lines)


-


40


-


-


-


40




 
For further information contact:




Central Asia Metals


Tel: +44 (0) 20 7898 9001




Nick Clarke, Chairman








Nigel Robinson, CFO








Louise Wrathall, Investor Relations


louise.wrathall@centralasiametals.com














Peel Hunt (Nominated Advisor and Joint Broker)


Tel: +44 (0) 20 7418 8900




Ross Allister








James Bavister


















Mirabaud Securities (Joint Broker)


Tel: +44 (0) 20 3167 7221




Peter Krens


















Blytheweigh (PR Advisors)


Tel: +44 (0) 20 7138 3204




Tim Blythe








Camilla Horsfall








Megan Ray












Qualified Person Statement:
 
The technical information contained in this announcement has been reviewed and approved by Nick Clarke, CAML Chairman, a qualified Chartered Engineer and member of the Institute of Materials, Minerals and Mining (MIMMM).
 
Note to editors:
 
Central Asia Metals, an AIM-listed UK company based in London, owns the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in Macedonia. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.
 



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