Last checked at 5 Jul 2017 07:00
5 July 2017
CENTRAL ASIA METALS PLC
("CAML" or the "Company")
Operations Update to 30 June 2017
Central Asia Metals plc (AIM: CAML) today provides a production update for the six months to 30 June 2017 (H1 2017) for the Kounrad dump leach, solvent extraction and electro-winning ("SX-EW") copper recovery plant in Kazakhstan ("Kounrad"), and an exploration update for the Shuak property ("Shuak").
Summary:
· H1 2017 copper production up 2% to 7,027 tonnes (H1 2016: 6,908 tonnes)
· H1 2017 copper cathode sales up 8% to 6,870 tonnes (H1 2016: 6,355 tonnes)
· Shuak exploration programme underway
Kounrad H1 2017 production
Kounrad Q2 copper cathode production of 3,670 tonnes brings output for the first six months of 2017 to 7,027 tonnes, a 2% increase on the corresponding period of 2016.
In April 2017, the Company began irrigating the Western Dumps and, during Q2 2017, approximately 1,300 tonnes of copper cathode have been recovered.
H1 2017 copper cathode sales of 6,870 tonnes represents an increase of 8% on H1 2016. The copper was sold predominantly through CAML's offtake partner, Traxys.
Shuak
Together with partners, Aksu-Esil, CAML has been undertaking geological mapping and is nearing completion of a TEM-FAST geophysics programme, which has been designed primarily to ascertain the depth and extent of the saprolite weathering horizon.
The 2017 diamond drilling programme of approximately 4,700 metres has recently commenced, together with an initial 7,000 metre core hydrotransport (CHT) drilling campaign. Priority areas for both work programmes are Mongol V and Mongol North. In total, 22,000 metres of drilling are planned for 2017.
Cash
As of 30 June 2017, CAML had cash in the bank of $41.7 million and no debt.
Nick Clarke, Executive Chairman, commented:
"We are pleased that our H1 2017 production is broadly in line with that of 2016. This ensures that we are on course to achieve our full year production guidance of between 13,000 tonnes and 14,000 tonnes of copper cathode.
"Q2 2017 has been an important period for us at Kounrad as we commenced production at the Western Dumps and we are pleased to report that copper recovery is in line with our expectations.
"We have also begun drilling and undertaking a wider exploration programme at Shuak, and we look forward to reporting exploration results in due course".
For further information contact:
Central Asia Metals plc Tel: +44 (0) 20 7898 9001
Nick Clarke, Executive ChairmanNigel Robinson, CFOLouise Wrathall, Investor Relationslouise.wrathall@centralasiametals.com
Peel Hunt (Nominated Adviser & Joint Broker) Tel: +44 (0) 20 7418 8900
Matthew ArmittRoss Allister
Mirabaud Securities (Joint Broker) Tel: +44 (0) 20 7878 3362
Peter Krens
Bell Pottinger (PR Advisers) Tel: +44 (0) 20 3772 2500
Lorna CobbettAarti Iyer
Note to editors:
Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in Kazakhstan. The Company also has a 75% equity interest in Copper Bay Ltd, which is a private company that has conducted a definitive feasibility study at its copper project in Chañaral Bay, Chile. In November 2016, Central Asia Metals signed a framework agreement to acquire an effective 80% interest in the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.