hmmm, page-5

The below announcement explains why the Kyrgyz Govt has pulled that licence away from CGX.

Hopefully, CGX can win this fight as the article states that the licence annulment is yet to be completed. If CGX was to lose the licence they may still be able to get some kind of financial settlement (albeit a very poor second prize).


BISHKEK, May 19 (Reuters) - A Kazakh-Kyrgyz mining joint
venture said on Friday it believed it had rights to operate a
Kyrgyz gold mine that Australian company Central Asia Gold Ltd
still lists as one of its projects.
Yerlan Mukanov, general director of the Altynken joint
venture, said production would start in 2009 and his company
would invest $100 million at the Taldybulak field, which has
estimated reserves of 200 tonnes.
He said his company planned to produce up to three tonnes of
gold a year.
Central Asia Gold said in a half-year report to December 31,
2005, posted on its Website www.cagl.com.au, that there was
"uncertainty" around the project after its joint venture
partner, state gold company Kyrgyzaltyn, sought to withdraw.
"The State Agency on Geology and Mineral Resources... has
resolved to annul the Taldybulak licenses," Central Asia Gold
said, adding that it believed the move was unlawful and it was
in talks with the government on restoring the licence.
Kyrgyzaltyn is a 40 percent partner in the new Altynken
joint venture. The remaining 60 percent is controlled by Kazakh
company Summer Gold.
Kyrgyzaltyn spokesman Georgy Glukhov told reporters:
"Judicially this case (annulling the licence) has not been
completed. We're looking for a calm settlement of this conflict
of interests."
Several foreign investors in Kyrgyzstan have faced problems
with their contracts since former President Askar Akayev was
ousted and fled the country in March last year in a coup.
Mukanov said he did not expect legal problems for Altynken
as the licence had been awarded by the new government of
President Kurmanbek Bakiyev, elected last July.
"We were awarded our contract in a normal, legal way," he
said.
British miner Oxus Gold Plc. has been in talks with
Kyrgyzstan since 2004 to restore a licence to develop the
Central Asian country's second largest gold deposit at Jerooy
but has faced opposition from Prime Minister Felix Kulov.
((Reporting by Olga Dzyubenko, Writing by Michael Steen;
Reuters Messaging: [email protected],
[email protected]; +7 3272 508 500))
Keywords: MINERALS KYRGYZSTAN GOLD


Friday 19 May 2006 21:12:22 AEST