TIDMGBGR
1 June 2016
GoldBridges Global Resources Plc
("GoldBridges" or the "Company")
Mine Development and Company Update
Highlights:
-- Completion of the second transportation decline at Sekisovskoye,
which will enable increased underground ore production to an
annualised run-rate of 500,000 tonnes, starting from H2
2016;
-- Paste fill plant project development underway, permitting process
commenced;
-- G&A cost cutting measures identified for 2016.
Aidar Assaubayev, CEO of GoldBridges, commented:
"Given the progress that we have made in terms of both financing
and implementing our underground expansion, we are confident that
the Company is on track to delivering annual gold production of
100,000oz by 2019."
Completion of transportation decline
GoldBridges is pleased to announce that it has completed the
construction of the second transportation decline at Sekisovskoye
from 310 metres above sea level (masl) to the bottom of the open
pit, with a total haulage distance of 530 metres.
On completion of this decline, the haulage distance from the
mine to the processing plant has been reduced from 3km to 1.4km. In
addition, the construction of this decline will result in an
increase in annual production capacity from the underground mine to
500,000 tonnes.
Development work is now focused on opening up the ore reserves
by preparing the forthcoming sublevel orebody no. 11 for
production.
Paste fill plant
As previously identified, the most efficient mining method for
Sekisovskoye appears to be long hole open stoping with paste fill,
as this mining method allows for increased selectivity and
therefore the potential to increase the grade of ore mined.
In order for GoldBridges to utilise this mining method, a paste
fill plant would need to be constructed on site, close to the
existing processing plant. The paste fill plant would produce a
paste fill from cement, water and inert material from Sekisovskoye
mine tailings.
The Company has now completed the draft plans for the paste fill
plant construction project and has commenced the governmental
permitting process. GoldBridges expects to receive all necessary
permits by the end of 2016 and therefore be able to begin
constructing the plant in early 2017.
The annual paste fill production capacity design of 200,000
cubic metres would be sufficient for the initial annual ore
production target of 500,000 tonnes. As production from the
underground mine increases further to 1 million tonnes per year,
the plant capacity will be expanded to produce sufficient paste
fill.
G&A cost cutting measures
At a recent Board meeting, the GoldBridges Directors agreed a
substantial administrative expenses cost cutting programme that
will allow the company to save up to US$3.2 million in 2016,
equating to a c30% reduction comparing to administrative expenses
in 2015.
The majority of cuts will be from payroll reductions to senior
level staff by switching to share-based incentive schemes to key
executive personnel, travel allowance reductions and reductions in
expenses associated with PR, corporate broking and investment
banking activities. The company will also significantly reduce
expenses in its London head-office.
Further Information:
For further information please contact:
GoldBridges Global Resources Plc
Louise Wrathall+44 (0) 207 932 2456
Information on the Company
GoldBridges is a gold mining, exploration and development group
based in Kazakhstan. Whilst the Company was initially established
to exclusively develop and operate the Sekisovskoye gold and silver
mine in the East Kazakhstan Region, it is now actively targeting
additional gold mining opportunities in Kazakhstan. This includes
the adjacent prospective Karasuyskoye Ore Fields, on which
GoldBridges was recently awarded the tender to perform further
confirmatory testing in order to gain the sub-soil user
license.
The Company holds a 100 per cent shareholding in DTOO
Gornorudnoe Predpriatie Sekisovskoye ("DGPS") which holds a subsoil
use contract in relation to the Sekisovskoye deposit, covering a
total area of 0.855km². The subsoil use contract for Sekisovskoye
is valid until 2020 and the Company currently intends to seek to
extend the contract in accordance with its terms. The Company also
holds a 100 per cent shareholding in DTOO Altai Ken-Bayitu LLP
which owns and operates the processing plant at the Sekisovskoye
deposit. The Sekisovskoye deposit is located at the village of
Sekisovka, approximately 40km north of the town of Ust-Kamenogorsk,
the capital city of the East Kazakhstan Region.
The company is in transition moving from open pit production to
underground development of the mine. The operations are expected to
be fully underground from H2 2016 onwards.
As at 31 May 2014, the Company's proven and probable reserves
consisted of 2.3Moz of gold and 3.0Moz of silver, and the Company's
measured, indicated and inferred resources consisted of 5.1Moz of
gold and 3.5Moz of silver, in each case as classified in accordance
with JORC.
In the year ended 31 December 2015, the Company's consolidated
revenue was US$24million and its EBITDA was US$(2.3) million.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160531006291/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
June 01, 2016 02:00 ET (06:00 GMT)
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