Andash is located in the north-west of the Kyrgyz Republic,...

Andash is located in the north-west of the Kyrgyz Republic, within the great Tien Shan gold belt, one of the world’s major gold provinces, that extends across central Asia. Well situated topographically for open cut mining and well served by infrastructure, it is 280 km by sealed road from the capital, Bishkek, and 45 km from the regional centre, Talas. The town of Kopuro Bazar is 2.5 km away. Water is available on site and a major power line passes within 8 km. A rail line is 150 km from Andash by road with connections to Kazakhstan, China and Europe.

Other Western companies active in the resources sector in the Kyrgyz Republic include:

Centerra Gold
Gold Fields
Santos
Manas Resources
Chaarat Gold
Orsu Metals


Andash Project Overview
1.6mtpa to 3.2mtpa throughput
Simple and conventional open pit and flotation plant
3 stage crush, grind, float process
Average annual production:
–70,000 oz Au and 7,400t Cu
High grade concentrate 24.5% Cu and 72 g/t Au
No deleterious elements
Initial mine life 6 years
Resource/reserve expansion likely to significantly increase mine life

Andash JORC Resource Estimate

Andash JORC Reserve Estimate

Feasibility Study Outcomes
Acquired as an advanced project in 2009, Andash was subjected to a definitive feasibility study (DFS) by Kentor Gold. While the DFS confirmed Andash as a very low cost gold-copper project, additional metallurgical test work improved the project’s economics even further, the results being announced in mid-2010.
The test work resulted in projected improvements of 3.5% in gold recovery. The design engineering team simplified the flotation cleaner circuit resulting in increases in the grades in the single high grade concentrate to 24.5% copper and 72 g/t gold. The higher concentrate grades also delivered reductions in the unit costs of transporting concentrate and concentrate treatment charges.
Annual production over the six-year mine life was forecast to average 70,000 oz gold and 7,400 tonnes copper, increases of 17% and 9% respectively over the DFS.
The projected gold cash cost fell by 24% to US$29/oz after copper credits and including transport, treatment and refining charges and royalties. The capital cost was reduced by 6% to $96M. The extremely low cost of production assumed a gold price of US$1,000/oz and a copper price of US$2.75/lb. These prices were also the basis for the base case Net Present Value of the project of US$130M. At current metal prices, the forecast cash cost reduces further, and the NPV increases significantly.
Exploration Potential
Andash Zones 2 and 3
Explored by adits
30 diamond drill holes
Located 1 km west of Andash Zone 1
Exploration target of 5 to 10 mt of ore @ 1 to 1.5 g/t gold*