TIDMALTN
RNS Number : 4034B
Altyn PLC
03 April 2017
The following amendment has been made to the 'Operational Update
for FY 2016' announcement released on 03 April 2017 at 7am under
RNS No 2742B.
In the first bullet point of the highlights, the comparable
figure in relation to the actual gold sold in 2015 was 20,890oz and
not as previously reported 9,890oz.
All other details remain unchanged.
The full amended text is shown below.
03 April 2017
("Altyn" or "Company")
Operational Update for FY 2016
Altyn Plc, the gold mining and development company, is pleased
to provide an operational update for the full year ended 31
December 2016.
Highlights
-- 12,602oz of gold sold in 2016, (2015: 20,890oz)
-- Gold production of 10,970oz in 2016, (2015 15,534oz) and silver of 16,520oz (2015 26,608oz).
-- H2 2016 gold production of 7,276oz compared to production of
3,694oz in H1 2016 a direct result of increasing production from
the underground mine.
-- The company is continuing to increase its productive capacity
and recently took delivery of an LHD (load-haul-dumper), these are
used to fill the underground trucks with ore. Purchased from
Fambition, PRC. This together with the existing two LHDs and the
existing fleet of 30-ton trucks significantly increases the
productive capacity. It is expected to be operational in early
April 2017.
-- Ongoing capital expenditure in 2017 is likely to be in the
region of US$15m increasing to US$20m in 2018 after adjusting for
deferrals from 2016.
-- The increase in productive capacity is expected to result in
a run rate of 40-45koz of gold production during 2017.
-- In the prospective area Karasuyskoye, several promising areas
for detailed geological exploration in 2017 have been identified.
These include a plot with a high silver content (up to 980 g/t) and
a structure containing industrial gold concentrations (from 0.73 to
6.38 g/t).
Key Metrics
Unaudited key operating statistics for the year ended 31
December 2016
2016 2015
------------------------ -------- -------- --------
Mining - underground
------------------------ -------- -------- --------
Ore Mined tonnes 100,763 79,276
------------------------ -------- -------- --------
Average Gold Grade g/t 2.70 2.55
------------------------ -------- -------- --------
Average Silver Grade g/t 3.76 3.70
------------------------ -------- -------- --------
Mining processing
------------------------ -------- -------- --------
Ore Milled tonnes 262,546 566,664
------------------------ -------- -------- --------
Gold Recovery Rate % 80.2% 76%
------------------------ -------- -------- --------
Silver Recovery
Rate % 73.5% 64.9%
------------------------ -------- -------- --------
Gold Produced oz 10,970 15,534
------------------------ -------- -------- --------
Silver Produced oz 16,520 26,608
------------------------ -------- -------- --------
Operational Update
The overall low production levels of 2016 have to be seen in the
context of the continuing development of the mine, and are a direct
consequence of the resources being used to build a platform to
bring the underground mine into production.
On a positive note the significant growth in underground mining
in the second half of the year was achieved primarily thanks to the
acquisition of new equipment (LHD and underground dump trucks), as
well as the launch of a second transport decline, which
significantly reduced the haulage distance to the processing plant.
In early 2017, the company acquired another LHD (3 m(3) ) produced
by Fambition, PRC, which is expected to be operational in April
2017. Further acquisitions of capital expenditure are anticipated
in the near term to further enhance productive capacity including
another 30-ton truck. The total capital expenditure in 2017 is
expected to be in the region of about US$15m, primarily for the
purchase of underground equipment (ore handling equipment).
Realisation of these investments will allow the production at a run
rate of 40-45koz of gold in 2017.
The upgrade of the underground ore processing technology, as
well as the reduction of the share of low-grade quarry ore,
contributed to an improvement in the extraction rates in the
factory in 2016 (+ 4% compared to 2015). In the second half of
2016, the company achieved a target of 82% in the gold recovery
rate. The introduction of the gravity enrichment stage, planned for
the second half of this year, will further increase this
figure.
Based on the unaudited results for the year and given the low
level of production the cash cost of production is estimated to be
in the region of US$900oz - US$1050oz (2015 US$837oz). The total
cash cost including general and administrative expenses, is
estimated to be in the region of US$1,350 - US$1,450oz (2016
US$1,263oz). These figures are distorted due to the low level of
production and are expected to reduce progressively each year as
the production rises.
In May 2016 the Company acquired an exploration licence in
Karasuyskoye, the preliminary results of operations of the
exploration are very encouraging and are noted below:
-- One prospective area within Karasuyskoye which has been
tested has revealed silver deposits with grades as high as 980 g/t.
In addition, there was a high probability of co-mineralisation
represented by bismuth, zinc, and tellurium. The initial estimates
are that the ore resources may be substantial and in particular,
the silver resources may amount to in excess of 340 tons, with an
average silver grade of 60 g/t, and indeed may be substantially
higher. The Company has collected a large number of silver samples
in order to perform further detailed scientific testing.
-- In the prospective area known as Glyaden within Karasuyskoye
we identified mineralisation containing economic gold grades from
0.73g/t to 6.38g/t. With further work exploration planned in this
area the initial results are very encouraging.
Aidar Assaubayev, CEO of Altyn Plc, commented:
"We are pleased with the development of the underground mine in
2016 which has built a solid platform for the future growth of the
Company, the results of which are now bearing fruit. The strong
rate of growth of production in the second half of 2016 has been
sustained in 2017, and will be further enhanced going forward as
new capital equipment is acquired. We are confident in meeting the
targeted forecast gold production figures going forward of
100,000oz in the future, with a forecast cash cost of US$510. The
Sekisovskoye mine project together with the added benefit of the
development Karasuyskoye ore field, the exploration results of
which are looking very encouraging are expected to generate
substantial returns to the shareholders".
For further information, please contact:
Altyn Plc
Rajinder Basra, CFO +44 (0) 207 932 2456
VSA Capital (Corporate Broker)
Andrew Monk / Andrew Raca +44 (0) 203 005 5000
Blytheweigh (Financial PR)
Tim Blythe/Camilla Horsfall +44 (0) 207 138 3204
About Altyn plc
Altyn is a gold mining, exploration and development group based
in Kazakhstan. Whilst the Company was initially established to
exclusively develop and operate the Sekisovskoye gold and silver
mine in the East Kazakhstan Region, it is now actively targeting
additional gold mining opportunities in Kazakhstan. This includes
the adjacent prospective Karasuyskoye Ore Fields, on which Altyn
was recently awarded the tender to perform further confirmatory
testing in order to gain the sub-soil user licence.
The Company holds a 100 per cent shareholding in DTOO
Gornorudnoe Predpriatie Sekisovskoye ("DGPS") which holds a subsoil
use contract in relation to the Sekisovskoye deposit, covering a
total area of 0.855km(2). The subsoil use contract for Sekisovskoye
is valid until 2020 and the Company currently intends to seek to
extend the contract in accordance with its terms. The Company also
holds a 100 per cent shareholding in Altyn MM LLP (formerly Altai
Ken-Bayitu LLP), which owns and operates the processing plant at
the Sekisovskoye deposit. The Sekisovskoye deposit is located at
the village of Sekisovskoye, approximately 40km north of the town
of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region.
The current operation is focused on mining the near-vertical
deposits which extend to the surface below the open pits which have
been previously mined.
The Company intends that the Sekisovskoye deposit shall become a
selective-mining underground operation. As at 31 May 2014, the
Company's proven and probable reserves consisted of 2.3Moz of gold
and 3.0Moz of silver and the Company's measured, indicated,
inferred resources consisted of 5.1Moz of gold, and 3.5Moz of
silver, in each case as classified in accordance with JORC.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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