Operational Update H1 2014

RNS Number : 4546P

GoldBridges Global Resources PLC

19 August 2014

 

19 August 2014

GoldBridges Global Resources Plc

("GoldBridges" or the "Company")

H1 2014 Operational Update

Goldbridges is pleased to provide the following H1 2014 operational update for its 100 per cent owned Sekisovskoye gold mine in Kazakhstan ("Sekisovskoye").

Highlights

•     H1 2014 total gold production from Sekisovskoye of 12,694 ounces ("oz") slightly higher than comparable period of 2013

•     Gold processing plant expansion from 0.85 million tonnes per annum ("Mtpa") to 1.0 Mtpa underway

•     Significant progress has been made in underground development work which would permit  greater access to higher grade areas

•     Completion of the independent Competent Person's Report ("CPR") for Sekisovskoye's underground development project expected by end of Q3 2014

•     Appointment of Ken Crichton (currently a Non-Executive Director) to the role of Chief Technical Officer and an Executive Director

Aidar Assaubayev, CEO of Goldbridges, commented "During H1 2014, we have worked hard in preparing the underground mine to access higher grade ore and upgrading the processing plant for increased production. We look forward to higher output in H2 2014 and remain confident that we will meet our production targets for the year. Finally, I look forward to working with Ken on a day-to-day basis as we embark on our expansion plans, starting with the development of the Sekisovskoye underground mine".

H1 2014 Gold Production

Total gold production for the six months ended 30 June 2014 was 12,694 oz, which was in line with Company expectations.

GoldBridges continues to reallocate mining resources to the underground development project and to reduce production in the open pit. Underground ore production rose considerably when compared to H1 2013 production and now comprises c. 8 per cent of total ore mined (up from 1.5% in H1 2013). This production comes from selected development ore that will eventually be replaced by higher grade primary ore from the production stopes once they are fully developed.

The gold grade during the period remained almost unchanged at 1.42 grams per tonne ("g/t"), with the underground gold grade averaging 2.97 g/t and the open pit gold grade averaging 1.26 g/t. Overall open pit gold grades fell as the Company moved from the north pit with richer grades, but which is now almost depleted, to the lower grade central pit.

	H1 2014
Total ore mined, open pit (t)	317,085
Total ore mined, underground (t)	26,157
Total ore milled (t)	333,490
Open Pit gold grade (g/t)	1.26
Underground gold grade (g/t)	2.97
Average gold grade (g/t)	1.42
Average silver grade (g/t)	2.15
Gold Produced (oz)	12,694
Silver Produced (oz)	17,380

Sekisovskoye Underground Development Update and CPR

GoldBridges expects to commence the commissioning of new crushing equipment by the end of Q3 2014. In combination with a number of initiatives already underway to debottleneck the processing circuits, this new equipment should further increase the efficiency of the crushing and milling plant. It is expected that this will eventually increase ore throughput from 0.85 Mtpa to 1.0 Mtpa.

As previously announced on 11 August 2014, the Company's Sekisovskoye mine development project has been approved by the Ministry of Industry and New Technologies ("MINT") for inclusion in the State Program on Forced Industrial-Innovative Development ("SPFIID"). This now means that the Company has obtained all the necessary licenses and technical approvals required to develop the underground mine and remains pleased with the rate of underground development during the last six months as all internal targets have been achieved. The Company intends to carry out the majority of the underground development work itself, and will only engage specialist contractors as and when needed. This approach ensures that the Company has more flexibility and control over development progress thereby limiting the risk of budget overruns.

During H1 2014, Venmyn Deloitte continued to advance the independent CPR on the Sekisovskoye underground mine resource. This is being completed according to the JORC Code (2012 Edition) standards and it is currently expected that the CPR will be finalised by the end of Q3 2014.

The Board is pleased to announce it has appointed Mr. Ken Crichton (currently a Non-Executive Director) to the role of Chief Technical Officer and Executive Director so to better facilitate him assisting the management team in implementing GoldBridges growth plans in the coming years.

Mr. Crichton is a mining engineer with over 28 years of experience within the mining industry. After graduating from the University of New South Wales in 1985, a significant proportion of his career has involved working in developing countries and a considerable part in active mine production roles. In the previous 5 years, Mr. Crichton was the CEO of ASCOM Precious Metals Mining, S.A.E., an Egyptian-based minerals company with gold exploration and mining activities across Africa. Prior to that he worked for 15 years with BHP Billiton in both Australia and Indonesia. In addition, Mr. Crichton worked for four years with Leighton Holdings Group; a leading construction and mining contractor at Lihir Gold Mine, Papua New Guinea and in Australia. Mr. Crichton is also a Non-Executive Director of Kemin Resources PLC.

Karasuyskoye Ore Fields Update

The Group is currently in discussions with government authorities to obtain the necessary licenses and permits to exploit the site and conduct further testing to validate the initial resource estimates.

For further information please contact:

GoldBridges Global Resources Plc Rajinder Basra, FCA	[phone]
Strand Hanson (Nomad and Joint Broker) Andrew Emmott Ritchie Balmer	[phone]
Peat & Co. (Joint Broker) John Beaumont, COO and Head of Research	[phone] [phone]
Blytheweigh  (Financial PR) Tim Blythe Halimah Hussain Camilla Horsfall	[phone]

 

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