Gulf Int’l courts Tajiks for properties

The government of Tajikistan has given Gulf International Minerals (VSE) the exclusive right to any of the hardrock projects in the former Soviet republic.

The agreement, signed by the country’s president, requires Gulf International to cover all hard-currency costs. The Tajiks will provide for local costs in rubles, where possible.

Tajikistan is situated immediately north-east of Afghanistan. Full details of the projects are not yet available, although some properties are well-advanced.

The Chorye deposit contains about 7.3 million tonnes grading four grams per tonne using a 3-gram cutoff. The estimate is based on underground drifting and more than 200 holes drilled between 1977 and 1989.

On the Burgunda deposit, proven and probable underground reserves are estimated at 680,000 tonnes grading 10.1 grams per tonne.

Gulf has a separate agreement on the Kansai mine in northern Tajikistan. The company has already funded about US$350,000 in costs at the open-pit operation, which includes a 600-tonne per day flotation mill. Upgrades and fine-tuning in the mill have raised recoveries to about 95% from 75%. Also, concentrate grades have been boosted to 475 grams per tonne gold from previous levels of 70-100 grams.

According to the agreement on Kansai, Gulf will recover its costs from cash flow. It will also retain a 20% net smelter return, from which it expects to generate about $1 million per year.

Mine costs and reserves have not been released, though International Gulf President Reg Davis said grade is running at about 3.5 grams gold and the Tajiks estimate the mine will last about 20 years.

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