Highland Gold Mining Limited Unkurtash Scoping Study (9077Z)
March 20 2017 - 3:04AM
UK Regulatory
TIDMHGM
RNS Number : 9077Z
Highland Gold Mining Limited
20 March 2017
HIGHLAND GOLD MINING LIMITED
Scoping Study Confirms Economic Potential of Unkurtash
Project
20 March 2017
Highland Gold Mining Limited ("Highland Gold" or the "Company")
announces details of a Scoping Study, compiled together with
consultants SRK, which indicates positive economics for the
Unkurtash project. An executive summary of the Scoping Study will
be available shortly on the Company's website
(www.highlandgold.com).
Located in the Republic of Kyrgyzstan in Central Asia, the
Unkurtash license area covers three well-explored deposits -
Unkurtash, Karatube and Sarytube - with previously-published
JORC-compliant mineral resources (measured, indicated and inferred)
of 3.5 Moz of gold at 1.82 g/t (IMC Montan, 2013). The project is
situated in an area that already features operating mines and has
access to paved roads, power and water supply.
Scoping Study highlights:
-- 18-year life of mine with annual production of 133k ounces.
-- NPV of US$ 200 M at a 10% discount rate, and an IRR of 19%
assuming a long-term gold price of US$ 1,200/oz.
-- Estimated average operating costs of $616/oz.
-- Mining plan envisioning two open pits of similar size.
-- Processing plant utilizing gravity concentration and gravity
tailings CIL with an annual throughput of 4 million tonnes and
recoveries of over 80%.
-- Capital expenditures for project development pegged at US$ 322 million.
Highland Gold acquired 100% of Unkurtash from Barrick Gold in
2006 and has since spent US$ 38 million on extensive exploration of
the site. Local-standard (GKZ) reserve estimates and a local-format
pre-feasibility study have already been submitted to and approved
by Kyrgyz regulators.
The Company is considering various alternatives for proceeding
with the project, including partnering with another strategic
investor to co-develop Unkurtash.
Information contained in this release has been taken from the
report "A Scoping Study for the Unkurtash Project, Kyrgyzstan" and
prepared in compliance to the JORC Code 2012 by a panel of
qualified industry experts of SRK Consulting (Kazakhstan) Limited
for Highland Exploration LLC. The Scoping Study has been signed off
by Mr. Mike Beare of SRK, who has verified the information
pertaining to the Scoping Study in this release. Mr Beare has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration to qualify as Competent Persons
as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves".
FOR FURTHER INFORMATION PLEASE CONTACT:
Highland Gold John Mann, Head of Communications
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
Numis Securities Limited John Prior, James Black
(Nominated Adviser and Broker) Paul Gillam
+44 (0) 207 260 1000
Peat & Co Charlie Peat
(Joint Broker) +44 (0) 207 104 2334
This information is provided by RNS
The company news service from the London Stock Exchange
END
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