Dalabai

Acquired in 2008, Dalabai has been the Company’s focus for the past two years, as an easy target to develop heap leach operation. This could provide early cashflow to provide funding for further exploration and development.

Mining commenced at Dalabai in September 2011 and processing is scheduled to commence in Quarter 1, 2012, with first gold pour and revenue to follow.  Initial production will be at an average rate of 15,000 ounces of gold per annum, increasing to 30,000 ounces per year with the planned installation of a second crusher in 2012.

Dalabai is conveniently located 2.5 hours drive from Almaty, Kazakhstan’s largest city, with a major highway to the deposit.  Rail facilities are within 20 mins, and Taldykorgan, a small city with hospitals, universities and services is within an hours' drive.  The terrain is gentle and the weather mild for the region, so heap leaching will be able to continue throughout the winter.

The current Resource at Dalabai is primarily from three out of eight identified ore zones, with drilling in Q4 2011 to increase the known resource from the other zones and mine life.  Results from this program are due by the end of March 2012.

 

The north-east part of the licence area was acquired in 2010 and a regional exploration programme in this area to identify potential mineralisation is planned for 2012.