Source - RNS
RNS Number : 6421K
Central Asia Metals PLC
12 April 2018
 

12 April 2018

 

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Q1 2018 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q1 2018 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in Macedonia ('Sasa').

Highlights

-      Kounrad

Q1 2018 copper production, 3,070 tonnes

-      Sasa

Q1 2018 zinc in concentrate production, 5,518 tonnes

Q1 2018 lead in concentrate production, 7,020 tonnes

-      Shuak

Encouraging assay results

2018 proposed $2.5 million exploration programme

 

CAML production summary

Metal production (tonnes)

Q1 2018

Q1 2017*

Copper

3,070

3,357

Zinc

5,518

5,289

Lead

7,020

7,286

*Q1 2017 zinc and lead production pre-date CAML ownership

Nick Clarke, Chairman, commented:

"These production results demonstrate a good start to the year at both Kounrad and Sasa. Taking seasonal variations in Kazakhstan into account, both of our operations are on track to achieve 2018 production targets, which are 13,000 to 14,000 tonnes of copper cathode, plus 21,000 to 23,000 tonnes of zinc in concentrate and 28,000 to 30,000 tonnes of lead in concentrate."

Kounrad

Kounrad Q1 2018 copper production is 3,070 tonnes. Total Kounrad copper production since operations commenced in 2012 is now 71,496 tonnes.

The winter period was the coldest experienced in five years, with a week in January averaging minus 38 degrees centigrade. The Western Dumps raffinate heating system that formed part of the Stage 2 Expansion programme worked well in its first winter of operation, with 2,302 tonnes of copper being leached from these dumps. This equates to 75% of total Kounrad Q1 2018 production.  

Copper sales during Q1 2018 were 2,527 tonnes.

Sasa

In Q1 2018, mined and processed ore was 192,372 tonnes and 196,364 tonnes respectively. The average head grades for the period were 3.32% zinc and 3.83% lead. The average metallurgical recoveries were 84.6% for zinc and 93.3% for lead.

Sasa produces a zinc concentrate and a separate lead concentrate that contains silver. In Q1 2018, 11,385 tonnes of concentrate containing 48.5% zinc and 9,587 tonnes of concentrate containing 73.2% lead were produced. 

Sasa typically receives from smelters approximately 85% of the value of its zinc in concentrate and approximately 95% of the value of its lead in concentrate. Accordingly, Q1 2018 payable production of zinc was 4,690 tonnes and of lead was 6,669 tonnes. Payable base metal in concentrate sales for the period were 4,584 tonnes of zinc and 6,726 tonnes of lead.   

During Q1 2018, Sasa sold 108,680 ounces of payable silver. Due to an existing streaming agreement with Osisko Gold Royalties, CAML's silver production has been pre-sold.  

 

Units

Q1 2018

Q1 2017*

Ore mined

t

192,372

191,939

Plant feed

t

196,364

192,773

Zinc grade

%

3.32

3.21

Zinc recovery

%

84.6

85.5

Lead grade

%

3.83

4.00

Lead recovery

%

93.3

94.4

Zinc concentrate

t (dry)

11,385

10,688

-      Grade

%

48.5

49.5

-      Contained zinc

t

5,518

5,289

Lead concentrate

t (dry)

9,587

10,333

-      Grade

%

73.2

73.1

-      Contained lead

t

7,020

7,286

*Q1 2017 Sasa production pre-dates CAML ownership

Shuak

Following completion of the Shuak 2017 exploration programme, CAML has now received all assay results for the diamond and core hydrotransport ('CHT') drilling undertaken.

The new areas of oxide mineralisation that have been identified at the Kyzyl-Sor prospect have an estimated average thickness of 46 metres at an estimated average copper grade of 0.32% based on CHT drilling, although these estimates will not form part of any resource estimation.

Core from diamond drilling demonstrated intersections in the oxide material such as 41 metres at a copper grade of 0.51% from a depth of 3 metres and 45 metres at a copper grade of 0.28% from a depth of 2 metres.

Examples of encouraging sulphide intervals are 23 metres at a copper grade of 0.94% from a depth of 55 metres and 32 metres at a copper grade of 0.72% from a depth of 81 metres.

The following table demonstrates some notable drilling results in oxidised material.

Prospect

Drill hole

From (m)

Intersection (m)

Cu (%)

Mongol V

MN1

3.0

47.0

0.29

Mongol V

MN2

0.5

49.2

0.24

Mongol V

MN5

0.4

18.6

0.24

Mongol V

MN14

6.0

24.7

0.28

Mongol V

MN15

0.6

20.1

0.23

Mongol North

MN9

4.9

13.1

0.15

Mongol North

MN13

14.6

33.4

0.26

Mongol I-II

MM2

0.2

13.9

0.39

Mongol I-II

MM2

25.8

15.9

0.36

Mongol I-II

MM4

0.5

58.3

0.44

Mongol I-II

MM9

21.3

54.7

0.22

Kyzyl-Sor

KS1

2.2

45.1

0.28

Kyzyl-Sor

KS2

31.1

10.5

0.22

Kyzyl-Sor

KS4

0.4

37.8

0.28

Kyzyl-Sor

KS6

5.0

59.0

0.13

Kyzyl-Sor

KS12

3.1

41.0

0.51

Kyzyl-Sor

KS13

5.5

50.8

0.26

Kyzyl-Sor

KS15

9.3

32.7

0.20

 

The following table demonstrates some notable drilling results in sulphide material.

Prospect

Drill hole

From (m)

Intersection (m)

Cu (%)

Mongol V

MN2

78.3

27.4

0.58

Mongol V

MN3

55.0

23.0

0.94

Mongol V

MN4

81.0

32.3

0.72

Mongol V

MN5

71.0

30.3

0.31

Mongol V

MN6

38.2

22.7

0.98

Mongol V

MN14

60.0

35.4

0.59

Mongol V

MN15

64.9

24.1

0.57

Mongol V

MN15

238.0

17.0

0.67

Mongol V

MN15

328.5

12.7

0.60

Mongol North

MN9

37.0

18.0

0.59

Mongol North

MN9

95.4

21.2

0.55

Mongol I-II

MM1

21.7

97.3

0.20

Mongol I-II

MM2

44.1

22.5

1.74

Mongol I-II

MM2

74.5

9.5

1.21

 

While these intersections are encouraging, CAML will undertake additional drilling and exploration in 2018 in order to better understand likely continuity or resource potential of the Shuak licence.

The table below highlights the $2.5 million proposed 2018 Shuak exploration programme.

 

South Shuak

Deep zones

Kyzyl-Sor

Mongol I

Mongol V

Total

CHT drilling (m)

6,000

 

7,500

1,200

1,000

15,700

Diamond drilling (m)

1,500

1,500

2,000

2,000

1,500

8,500

Geophysics, TEM-FAST (no. lines)

35

-

-

5

-

40

Geophysics, induced polarisation (no. lines)

-

40

-

-

-

40

 

For further information contact:

Central Asia Metals

Tel: +44 (0) 20 7898 9001

Nick Clarke, Chairman


Nigel Robinson, CFO


Louise Wrathall, Investor Relations

[email protected]



Peel Hunt (Nominated Advisor and Joint Broker)

Tel: +44 (0) 20 7418 8900

Ross Allister


James Bavister




Mirabaud Securities (Joint Broker)

Tel: +44 (0) 20 3167 7221

Peter Krens




Blytheweigh (PR Advisors)

Tel: +44 (0) 20 7138 3204

Tim Blythe


Camilla Horsfall


Megan Ray




Qualified Person Statement:

 

The technical information contained in this announcement has been reviewed and approved by Nick Clarke, CAML Chairman, a qualified Chartered Engineer and member of the Institute of Materials, Minerals and Mining (MIMMM).

 

Note to editors:

 

Central Asia Metals, an AIM-listed UK company based in London, owns the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in Macedonia. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.

 


This information is provided by RNS
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