A report by SRK Consulting China has endorsed revised operational expenditure estimates projecting a doubling of daily capacity at Kryso Resources’ Pakrut Gold Project in Tajikistan to 4000 tonnes.
Compiled by the Beijing General Research Institute of Mining and Metallurgy, the independent report details an upgraded JORC-compliant mineral resource estimate with contained ore reserves.
Kryso managing director Craig Brown was pleased with the results for the project in the Vahdat Region of the former Soviet Republic. “This is further proof of substantial potential,” he says.
Measured resources now total 1.9 million ounces @ 3.16 grams/tonne gold at a 0.5 grams/tonne cut-off and indicated resources stand at 660,000 ounces @ 2.05 grams/tonne at a 0.5 grams/tonne cut-off. There are proven reserves of 1.55 million ounces @ 3.1 grams/tonne gold at a cut-off of 1.0 grams/tonne, and probable reserves of 222,258 ounces @ 2.5 grams/tonne gold at a cut-off of 1.0 grams/tonne.
The report also outlines capital expenditures of $176.5 million, of which $15 million has already been incurred, bringing the project into an initial production capacity of 2000 tonnes/day at an operational cost of $38.64 per tonne.
At a capital expenditure of $46.5 million, operating cash flow will subsidize the asset once production begins, increasing daily capacity to 4000 tonnes. Sustaining capital and operational expenditures throughout the 19-year mine life of $32.7 million will be funded from operating cash flow from the project once in production.
From Kryso’s secured loan facility, provided by China Nonferrous Metals International Mining Co, the company’s main shareholder, Kryso has currently drawn down $6 million via commercial terms in two $10 million denominations.
The 82.99% recovery rate and the annual gold production are expected to reach 116,000 ounces at full capacity. Total construction costs have increased from about $108 million for a 2000 tonnes/day operation, as calculated in the 2010 feasibility study. The plant will have a 4000 tonnes production cap after second phase implementation, with groundwork including additional foundations, a larger crushing circuit and enhanced electricity supply.