Altyn's gold output rose by more than 50% to 16,717 ounces in 2017.
In an update on the production and development at Sekisovskoye mine and at its prospective development at Karasuyskoye it said that underground ore mined increased to 287,389 tonnes (2016: 100,673t), a growth of 185%.
Ore milled amounted to 332,947t (2016: 262,546t) and included the processing of approximately forty five thousand tonnes of lower grade stockpiled ore used for operational reasons.
- A recovery rate of 83.54 per cent was achieved for the year, (2016: 80.20 per cent), this is expected to increase again as the low-grade ore is phased out.
- The underground ore grade was 2.08 grammes per tonne (2016:2.70g/t). This year the Company continued intensive construction of the underground mine, which led to an increase in the proportion of low grade development ore. The overall grade was further diluted down to 1.88g/t due to the processing of the stockpiled low-grade ore as noted above, which is being used for operational reasons to ensure efficient use of the processing plant.
- Gold production was 16,717 ounces (2016: 10,970oz), a 52.4 per cent increase from the prior year.
- The company is in the final stages of negotiations to obtain finance from a number of interested parties for the expansion and development of the mine. This will enable the company to move production in the future to the planned output levels of 60,000t increasing to 80,000t per month. The Company will update shareholders in the near term. - Karasuyskoye drilling and exploration activity is continuing at the prospective site with encouraging results:
* 1,200 metres of core holes have been drilled together with a 50m trench at the Tserkovskoye ore occurrence, to better define the two ore bodies at the site. In addition, 7000t of test ore has been prepared for extraction, with preliminary tests indicating a grade of 3.2g/t.
* Similarly, at the Kruglyachka ore occurrence, 600m of core holes and 400m of rotary air blasting has been conducted to delineate the gold bearing ore bodies, drilling work continues. Once completed the current planned work will result in 1100m of core drilling and 6,000m of air drilling.
* 1,200m of core drilling commenced at Glyaden in December 2017, in order to define the mineralised ore bodies at this location.
Chief executive Aidar Assaubayev said: 'The company is pleased to report an over 50 per cent increase in its gold production in 2017, and it is making significant progress in obtaining the necessary finance in order to increase the operational capacity of the mine.
'This has taken a longer period of time than was originally anticipated, however, it is important to ensure that the finance obtained is the right fit for the Company going forward.
'The Board are confident in the future growth and prospects that this investment will deliver
'The prospective Karasuyskoye exploration site which is still in its early stages of development is producing very encouraging results, it is envisaged that it will be a significant asset to the Company in the future.'
At 9:25am: (LON:ALTN) Altyn Plc Ord 0.1p share price was -0.1p at 0.88p