The feasibility study for Central Asia Resources’ Dalabai gold project in Kazakhstan is progressing well and the company is confident of beginning development later this year.

The company acquired Dalabai in the final quarter of 2008 and immediately began work to progress through feasibility study to development.

Historical information indicated that the prospect would be a simple, low capex, gold heap leach opportunity with the potential for early positive cashflow. Investigations carried out to date support this position.

A total of 2000 metres has been drilled in 27 diamond drill holes since the land was acquired. Assay results include 16.1 metres @ 2.53 grams/tonne gold and 8.4 grams/tonne silver from 30 metres, including 9 metres @ 4.32 grams/tonne gold and 13.3 grams/tonne silver, and 10.9 metres @ 1.32 grams/tonne gold and 6 grams/tonne silver from 14.6 metres, including 5 metres at 2.36 grams/tonne gold and 9.00 grams/tonne silver.

Central Asia ’s managing director Jason Stirbinskis says, “The results are encouraging and a little better than we expected based on the inherited historical data.

“In zone 5 we know that mineralization is in the old pit floor and the results are suggesting this extends for 37 metres below the pit floor.

“We also collected a 200kg sample of the old pit wall and floor in zone 4. After crushing and mixing, 5 samples were taken and assayed resulting in an average grade of 3.4 grams/tonne gold.

“It’s a good start and with around 50 drill holes scheduled in the current drill program, we hope this trend continues.”

The company has also completed renovations of the camp acquired from the previous operators. The camp can sleep 40 people and includes kitchen, ablution blocks and an office.

It has started bulk metallurgical testwork to confirm earlier design assumptions made regarding the parameters for the heap leach process and is developing basic engineering design and equipment lists for the heap leach process as well as securing quotes for major capital items.

Central Asia is also progressing the aspects of the feasibility study that are not influenced by pending resource calculations and metallurgical testwork such as reviewing local infrastructure and suppliers, carrying out environmental base line studies, and reviewing historical data.

Jason Stirbinskis says, “Dalabai is an important part of the company’s strategy. Because it is potentially a low capex heap leach operation capable of achieving quick positive cashflow, it is the sort of project that will get funding in the current market. We are targeting to be in development at Dalabai before the end of the year.

Dalabai is 180km north of Almaty, Kazakhstan’s largest city. The 8sqkm licence contains an area that has been mined via several small open pits with heap leach processing on site.

“As Dalabai has been in production previously, it is expected that the start up process and re-instatement of production permitting will be a relatively quick process.”

www.centralasia.com.au