EXPLORATION 1997 — Kazakstan Goldfields boosts reserves by 30% at Aksu

Drilling at the Aksu gold mine in north-central Kazakstan has boosted reserves considerably, reports Kazakstan Goldfields (KGFC-C).

Working just 100 metres from the mine, the company outlined five separate mineralized horizons within a folded sedimentary package of rocks. The new high-grade zone, called the Vera, will add proven and probable reserves of 1.5 million tonnes grading 8.8 grams gold per tonne to current reserves at Aksu of 3.7 million tonnes grading 4.8 grams.

The new zone’s proximity to both existing mine workings and the surface (150 metres) is expected to allow for quick access in the development stage.

But until a proposed carbon-in-pulp plant (CIP) is up and running, the new ore will be stockpiled along with the rest of the company’s concentrate production. The Balkhash smelter is no longer processing concentrates, owing to reduced capacity.

The Toronto-based miner has approached Gerald Metals, an international metals merchant and financier, about a loan facility to finance construction of the CIP plant this year. A feasibility study to explore this capital investment, which would eliminate the company’s reliance on the Balkhash smelter, is expected by the end of March.

The mineralized horizons discovered at Aksu are apparently stratiform and confined to sulphide-bearing areas of calcite and quartz veinlets. As such, they are seen as representing a new type of mineralization with lots of reserve potential. To date, less than 10% of the indicated resource at the Aksu site has been tested.

Kazakstan Goldfields, through the Gold Pool joint-venture, has a management contract to operate the Aksu, Bestube and Jolimbet mines in Kazakstan.

Production from Aksu and Jolimbet has been suspended until the feasibility study for the proposed CIP plant is completed. Bestube continues to operate, with emphasis on production from high-grade, free-milling gold veins. About half the expected monthly production of 4,500 oz. from Bestube is contained in gravity concentrates.

Next year, once the plant upgrade is completed at Aksu, the mines are expected to produce 175,000 oz., which should rise to 250,000 oz. per year in 1999 and beyond.

Kazakstan Goldfields holds a 75% interest in Gold Pool, with the remainder held by Central Asia Goldfields (CGZ-M). The latter company is also exploring mineral prospects in the country.