Avocet takes over Nelson’s Tajik assets

In a corporate decision to concentrate on its oil and gas interests, Nelson Resources (NLG-T) has reached an agreement to sell its holding in the Jilau gold operation in Tajikistan to London-listed Avocet Mining.

Avocet will buy Nelson’s subsidiary, Commonwealth and British Minerals, which owns 44% of Jilau’s operating company, Zeravshan Gold. In exchange Nelson will get 14 million Avocet shares, plus cash equal to 44% of Zeravshan’s net working capital.

Jilau produced 80,000 oz. gold last year, at a cash operating cost of US$218. At year-end it had measured and indicated resources of 12.6 million tonnes grading 1.3 grams gold per tonne in five zones.

Two other deposits, Taror, 15 km away from Jilau, and Chore, 145 km away, are under evaluation as possible sources of feed for the Jilau mill.