An avalanche in the area surrounding China Nonferrous Gold Limited’s (CNG) Pakrut Gold Project in the Republic of Tajikistan is expected to have a significant impact on gold production. CNG said that high levels of snowfall had resulted in an avalanche and landslide.

In a statement the company said the avalanche had disrupted local traffic and resulted in the interruption of power supply in the Pakrut area.

It added that although the smelting and processing plants at Pakrut were not damaged, several buildings had collapsed, but fortunately, there were no casualties.

CNG said earlier this week that the full impact of the avalanche was still being evaluated. It added that the firm purchased mine property insurance in 2016 and the provider was preparing to survey the site.

The Pakrut project is approximately 120km northeast of the capital city Dushanbe. It is located within the Tien Shan gold belt, which extends from Uzbekistan into Tajikistan, Kyrgyzstan and Western China, and which hosts a number of multi-million ounce gold deposits.

CNG, formerly Kryso Resources, is a London Stock Exchange AIM-listed mineral exploration and development company, focused on projects in Tajikistan. CNG was granted an exploration and trial licence over the Pakrut area, covering 63sqkm, in April 2004. In January 2012, CNG was granted a full mining licence for by the Government of the Republic of Tajikistan. The licence is valid until November 2030.

Total JORC-compliant resources of 4.808 million ounces, assuming a 0.75g/t cut-off grade, have been defined at the project. The deposit remains open and is expected to yield further resources over time, with substantial drilling programs ongoing.

CNG is focusing on three additional mineralised systems within the exploration licence area – Eastern Pakrut, Rufigar and Sulfidnoye - and drilling has been very encouraging.

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