Production of first cathode copper at Kounrad

RNS Number : 2982C

Central Asia Metals PLC

30 April 2012

 



30 April 2012

CENTRAL ASIA METALS PLC

("CAML" or the "Company")

Production of first cathode copper at Kounrad

Central Asia Metals plc (AIM:CAML), a copper production, mineral exploration and development company focused on base metals in Central Asia, announces commencement of the first production of cathode copper at its 10,000 tonne per annum Solvent Extraction - Electro Winning ("SX-EW") plant at Kounrad, Kazakhstan.  In a short timeframe, of just over 18 months, CAML has completed the construction phase of the SX-EW plant for less than the budgeted capital expenditure and has now commenced first copper production on site.

Processing of the pregnant leach solution ("PLS") from the tailings dumps and solution ponds in the SX plant commenced on 20 April and the copper content was gradually increased until it reached a suitable level for electro-winning.  The EW cells were then energised and plating of the copper in solution onto stainless steel cathodes commenced.

The amount of copper being plated reached 20 tonnes per day by 24 April and, on 29 April, the Company harvested a total of 25 tonnes of copper cathodes.  The harvesting of cathodes will be undertaken daily and the first sale and shipment of 300 tonnes of copper is expected in May 2012.

The SX-EW plant is currently only operating at 70% of its design capacity which will rise as commissioning work continues and processing of PLS increases.  It is anticipated that the ramp-up in production to the design capacity of 10,000 tonnes per annum will be reached by the end of 2012.

Nick Clarke, Chief Executive Officer of CAML, commented:

"We are delighted to announce the first production of cathode copper at the Kounrad SX-EW plant.  This is a significant milestone for the Company and is the culmination of 18 months of hard work from a dedicated team of professionals both in London and Kazakhstan.  I would like to take this opportunity to thank all the staff and local and national authorities in Kazakhstan for their hard work, support and dedication during this time.

CAML is now a copper producer and we look forward to the continued ramp-up in production to achieve the 10,000 tonnes per annum design capacity for Kounrad during the second half of 2012."

Enquiries:

Central Asia Metals plc                                 Nick Clarke                         [phone]
Nigel Robinson

Canaccord Genuity Limited                         Andrew Chubb                 [phone]
Rob Collins

Mirabaud Securities LLP                               Peter Krens                        [phone]

Pelham Bell Pottinger                                   Charles Vivian                   [phone]
Lorna Spears

Editor's Notes:

Central Asia Metals plc ("CAML" or the "Company") is an AIM-listed UK company based in London. Its main countries of operation are Kazakhstan and Mongolia. CAML is a copper production, precious and base metals mineral exploration and development company with majority stakes in copper, gold and molybdenum projects throughout Central Asia.

The Company's assets include:

·      60% of the Kounrad copper project in eastern Kazakhstan, which is targeting production of 10,000tpa of copper cathode by 2012.

·      70% of the Alag Bayan copper-gold porphyry exploration licence, located in the middle of Mongolia's prolific copper-gold porphyry mineralisation trend, approximately 100km from the world-class Oyu Tolgoi copper-gold deposit.

·      80% of the Handgait molybdenum project with 42,000t of metal in resource in northern Mongolia. (Currently held for sale)

·      85% of the Ereen gold project with c. 773koz in JORC-classified resources situated approximately 130km north of Ulaanbaatar, Mongolia. (Currently held for sale)

The Company's highly experienced management and operations team has a proven record in Central Asia, and is working towards developing a metals portfolio by identifying further value-adding opportunities and projects throughout Kazakhstan and Mongolia.

 

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