REG - Central Asia Metals - Q3 2024 Operations Update

Central Asia MetalsAnnouncement

09/10/2024 07:00

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RNS Number : 4421H  Central Asia Metals PLC  09 October 2024

9 October 2024

Central Asia Metals plc

(the 'Group', the 'Company' or 'CAML')

Q3 2024 Operations Update

Central Asia Metals plc (AIM: CAML) provides its Q3 2024 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
North Macedonia ('Sasa').

Q3 2024 operational summary

-      Zero lost time injuries ('LTIs') at Kounrad

-      Zero LTIs at Sasa

-      Kounrad copper production of 3,641 tonnes

-      Sasa zinc-in-concentrate production of 4,768 tonnes

-      Sasa lead-in-concentrate production of 6,864 tonnes

Outlook

-      Kounrad on track to achieve 2024 full-year guidance for copper
production (13,000 to 14,000 tonnes)

-      Sasa expected to achieve production towards the lower end of 2024
guidance:

o  zinc-in-concentrate: 19,000 to 21,000 tonnes

o  lead-in-concentrate: 27,000 to 29,000 tonnes

CAML production summary

 Metal production (tonnes)  Q3 2024  Q3 2023  9m 2024  9m 2023
 Copper                     3,641    3,661    10,248   10,377
 Zinc                       4,768    5,127    13,782   14,891
 Lead                       6,864    7,039    19,736   20,773

Gavin Ferrar, Chief Executive Officer, commented:

"Kounrad continued to perform well in Q3 2024, in line with its production
performance in the corresponding period of last year, and maintained its
excellent safety record. Q3 is seasonally Kounrad's strongest quarter, and the
operation remains on track to achieve full-year production firmly within the
guidance range given at the start of this year.

"Sasa also performed well in Q3 2024, with the tonnage processed recovering
from the levels of H1 2024 towards the level recorded in Q3 last year. This
represents a great achievement by the Sasa team, given the challenges posed by
the transition to the new mining system designed to ensure the operation's
long-term future. Head grades, in particular zinc, also recovered relative to
H1 2024. We look forward to maintaining this progress in Q4, which we expect
to result in full-year production towards the lower end of the guidance range.

"Meanwhile, the Capital Projects programme at Sasa is nearing completion,
which includes moving to the use of paste backfill in mining and adopting
dry-stack tailings. Together, these technologies form the core of Sasa's
long-term strategy; maximising resource extraction, and extending the life of
TSF 4 and thus avoiding the need for a new conventional tailings storage
facility. Together, these developments ensure Sasa's planned life to at least
2039."

Health and Safety

Kounrad had no LTIs during Q3 2024, and at 30 September 2024 had achieved
2,328 consecutive days LTI free.

Sasa also had no LTIs during Q3 2024, and just one LTI for the nine months to
30 September 2024. At 30 September, Sasa had achieved 94 consecutive days LTI
free.

Kounrad

Production and sales update

Kounrad Q3 2024 copper production of 3,641 tonnes brings output for the first
nine months of 2024 to 10,248 tonnes. Copper sales during Q3 2024 were 3,731
tonnes.

By the end of Q3, winter covering preparations had been completed at the
Western Dumps, and at the Eastern Dumps completion is expected by mid-October.
Trench extension work was under way during the quarter at the northwestern
edge of the Western Dumps, with 140 metres of the planned 660 metres
completed.

Sasa

Production and sales update

In Q3 2024, 195,659 tonnes of ore were mined and 193,475 tonnes processed,
bringing the total for the nine months to 30 September 2024 to 561,311 tonnes
mined and 561,550 tonnes processed. The average head grades for Q3 were 2.92%
zinc and 3.75% lead, and for the first nine months of 2024 averaged 2.88% and
3.72% respectively. The average Q3 2024 metallurgical recoveries were 84.4%
for zinc and 94.6% for lead.

Sasa produces a zinc concentrate and a separate lead concentrate. In Q3 2024,
9,550 tonnes of concentrate containing 49.9% zinc, and 9,647 tonnes of
concentrate containing 71.2% lead were produced. This brings total production
for the first nine months of 2024 to 27,463 tonnes of zinc concentrate at a
grade of 50.2% and 27,834 tonnes of lead concentrate at a grade of 70.9%.

Sasa typically receives from smelters approximately 84% of the value of its
zinc-in-concentrate and approximately 95% of the value of its
lead-in-concentrate. Accordingly, Q3 2024 payable production was 4,004 tonnes
of zinc and 6,521 tonnes of lead, bringing total payable production for the
first nine months of 2024 to 11,585 tonnes of zinc and 18,749 tonnes of lead.

Payable base-metal-in-concentrate sales for Q3 2024 were 4,031 tonnes of zinc
and 6,636 tonnes of lead, essentially in line with production.

During Q3 2024, Sasa sold 105,627 ounces of payable silver to Osisko Gold
Royalties, in accordance with its streaming agreement.

                             Units    Q3 2024  Q3 2023  9m 2024  9m 2023
 Ore mined                   t        195,659  199,085  561,311  595,319
 Plant feed                  t        193,475  199,427  561,550  596,099
 Zinc grade                  %        2.92     3.04     2.88     2.94
 Zinc recovery               %        84.4     84.6     85.1     84.8
 Lead grade                  %        3.75     3.79     3.72     3.74
 Lead recovery               %        94.6     93.1     94.5     93.1
 Zinc concentrate            t (dry)  9,550    10,249   27,463   29,506
 -      Grade                %        49.9     50.0     50.2     50.5
 -      Contained zinc       t        4,768    5,127    13,782   14,891
 Lead concentrate            t (dry)  9,647    9,919    27,834   29,221
 -      Grade                %        71.2     71.0     70.9     71.1
 -      Contained lead       t        6,864    7,039    19,736   20,773

Capital Projects - the transition to paste-fill mining and dry-stack tailings

During Q3 2024, the Paste Backfill Plant ('PBF') continued to operate
consistently, with approximately 76,000 tonnes of paste placed in the voids
between the 990 and 910 metre levels and in the cut-and-fill production stopes
on the 800-metre level. The first long-hole stopes are in production, and
additional stopes will follow during the remainder of 2024 and thereafter.

As in H1 2024, some previously mined voids proved of greater volume than
anticipated, increasing the volume of tailings that can be stored underground.
This void-filling also provides the necessary ground stability for current and
future mining. Since the commissioning of the PBF Plant, over 207,000 tonnes
of paste have been placed underground, representing around 50% of the total
tailings generated during this period.

Construction of the Dry Stack Tailings ('DST') Plant remains on track, with
dry commissioning started in September. Meanwhile, the first phase of the
engineered landform has been completed, ready for the placing of geosynthetic
materials prior to full commissioning of the DST Plant. Initial placement of
filter cake remains on schedule for Q4 2024.

In the third element of Sasa's Capital Projects, around 3,500 metres of the
Central Decline have been developed. Completion and connection with the
750-metre level remains on track for Q4 2024.

For further information contact:

 Central Asia Metals                             Tel: +44 (0) 20 7898 9001
 Gavin Ferrar
 CEO
 Louise Wrathall
 CFO
 Richard Morgan                                  richard.morgan@centralasiametals.com
 Investor Relations Manager

 Peel Hunt (Nominated Adviser and Joint Broker)  Tel: +44 (0) 20 7418 8900
 Ross Allister
 David McKeown

 Emily Bhasin

 BMO Capital Markets (Joint Broker)              Tel: +44 (0) 20 7236 1010
 Thomas Rider
 Pascal Lussier Duquette

 BlytheRay (PR Advisers)                         Tel: +44 (0) 20 7138 3204
 Tim Blythe
 Megan Ray

Note to editors:

Central Asia Metals, an AIM-quoted UK company based in London, owns 100% of
the Kounrad SX-EW copper project in central Kazakhstan and 100% of the Sasa
zinc-lead mine in North Macedonia. The Company also owns an 80% interest in
CAML Exploration, a subsidiary formed to progress early-stage exploration
opportunities in Kazakhstan, and a 28.7% interest in Aberdeen Minerals Ltd, a
privately-owned UK company focused on the exploration and development of base
metals opportunities in northeast Scotland.

For further information, please visit www.centralasiametals.com and follow
CAML on X at @CamlMetals and on LinkedIn at Central Asia Metals Plc

 

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