TIDMGBGR
GOLDBRIDGES GLOBAL RESOURCES PLC
Sekisovskoye underground mine development and production
update
GoldBridges Global Resources plc (LSE: GBGR) is pleased to
announce a further update on the development of the Sekisovskoye
underground gold mine, and provide an update on changes to its
dividend policy.
Highlights:
-- Underground ore production is now steadily increasing and reached
20,187 tonnes in October, this is planned to reach 25,000 tonnes
a
month by the end of the year, increasing to 42,000 tonnes a
month in
2017.
-- A recovery rate of 82% was achieved in October, the Company is
targeting to exceed this once the new gravity concentration
equipment
is installed during 2017.
-- The ore stoped from ore bodies 3 and 8 was confirmed at 3.7 g/t, which
was in line with the test results and which exceeded the
initial
planned targets.
-- The analysis of the gold composition has revealed a significant amount
of free gold - this will be extracted by gravity concentration,
which
is expected to significantly increase recoveries.
-- Production targets have been revised with targets being set at 40,000
Oz of gold production in 2017, planned to rise to 60,000 Oz in
2018
and to reach an annual run rate of 100,000 Oz during 2019.
-- The Company plans to pay out 15% of net profits in dividends, in the
future.
The underground ore throughput is tracking the planned
production profile and is on target to exceed 25,000 tonnes per
month by the end of the year. Moving into 2017 a production target
of 42,000 tonnes per month is expected to be achieved in early
2017, in the medium term gold production is planned to rise to
100,000 Oz per annum. The company expects that the increase of
production will be accompanied by a gradual reduction of total cash
cost, targeted to reach c. $900 in 2019.
The analysis of the extracted underground ore revealed the
presence of a significant amount (30%) of free gold, including a
large amount of coarse gold. To efficiently extract the free gold
the Company plans to use the gravity concentration method, leaching
is less effective as the free gold does not have enough time for
dissolution during leaching. The Company has ordered the necessary
equipment for gravity concentration extraction and plans to use the
process in early 2017. It is expected that this process of
extracting the gold will have a significant impact on gold
recoveries.
The Board of Directors approved a change in the Company's
dividend policy. The dividend policy is to recommend to
shareholders of the Company, for their approval, a dividend per
annum of not less than 15% of the net profit. The Company will
further endeavour to progressively increase the payout ratio over a
period of time, subject to a number of factors, including business
prospects, capital requirements of the subsidiaries,
growth/expansion strategy, considerations for non-recurring items
and other factors considered relevant by the Board.
Aidar Assaubayev, CEO of GoldBridges Global Resources Plc
commented:
"We are very pleased that the transition to underground mining
is continuing to evolve and is on target. We are grateful to our
shareholders for their patience and support during the transition
period. In order to provide additional clarity to the shareholders
going forward, the Board has decided to set the payout ratio in the
Company's dividend policy".
For further information please contact:
GoldBridges Global Resources Plc
Rajinder Basra +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
licence.
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 Altyn MM LLP (formerly Altai
Ken-Bayitu LLP), which owns and operates the processing plant at
the Sekisovskoye deposit. The Sekisovskoye deposit is located at
the village of Sekisovskoye, approximately 40km north of the town
of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region.
The current operation is focused on mining the near-vertical
deposits which extend to the surface below the open pits which have
been previously mined.
The Company intends that the Sekisovskoye deposit shall become a
selective-mining underground operation. 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$24.05 million and its net assets US$38.4
million.
View source version on businesswire.com:
http://www.businesswire.com/news/home/20161128005754/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
November 29, 2016 02:00 ET (07:00 GMT)
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