China Nonferrous Gold (CNG), formerly Kryso Resources, has successfully commissioned the processing plant at the Pakrut Gold Project in Tajikistan. This task was completed in early October with the company then proceeding to commission the smelting plant.
The Pakrut project, of which CNG has 100% ownership, is approximately 120km northeast of Tajikistan’s capital city Dushanbe. It is 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’s managing director David Tang said, “I am delighted to announce our progress at the Pakrut and the achievement of this significant milestone. We look forward to the commissioning of the smelting plant.”
In the six months to June 30, 2015, CNG spent US$29.6 million on the site, compared to US$11.3 million in the same period a year earlier. Pre-tax losses narrowed to US$1.2 million, from US$2.5 million in 2014, with cash in the business at June 30 at US$13.2 million.
In September CNG awarded an 18-month processing and smelting agreement for Pakrut to China Nonferrous Hongtoushan Fushun Mining Group (CNHFMG). Under the terms China Nonferrous will pay RMB17.99 (around US$2.80) per gram of finished gold once the operation kicks off on the 12 month production period.
If the production rate is above the forecast 82.99%, it will share 40% of the profits, while if it is less than 75%, CNHFMG will bear 20% of any losses incurred by the firm which are attributable to the recovery levels.
In January 2012, the Ministry of Energy and Industry of the Republic of Tajikistan formally announced the issuance of a Mining Licence to LLC Pakrut for the Pakrut Gold Project. The mining licence is valid until 2nd November 2030 and the amount of ore that can be mined is variable depending on the mine plan. The mine plan submitted to the Ministry envisages an initial processing capacity of 660,000 tons of ore per annum, increasing to 1,320,000 tons per annum from 2017.
Tajikistan is a secular republic located in Central Asia. The country is a member of the Commonwealth of Independent States and the Shanghai Cooperation Organisation. Tajikistan hosts numerous operating precious metal mines as well as the largest aluminium smelter in Central Asia. CNG’s management team has extensive experience in the mining industry in Tajikistan.