Business
Decision of the Board of Dire
Decision of the Board of Dire.
About this update from Kazera Global Plc
[{"type":"text","content":"\n RNS Number : 1740M KazakhGold Group Ltd 19 May 2010 \n \n\nFOR IMMEDIATE RELEASE\n \n19 May 2010\n \nKazakhGold Group Limited (LSE: KZG) today announces the decision taken at a Board of Directors Meeting held on May 18, 2010\nThe Board of Directors has reviewed the development strategy of the Kazakhstan assets of the Company until 2020. \nThe strategy provides for the modernization of existing production facilities to increase processing capacities from 0.97 mtpa to 1.3 mtpa and for the construction of the Central metallurgical plant (CMP) to decrease a discount given to existing semi-products of KazakhGold (to produce Dore gold).\nThe strategy also includes:\n· Exploration program for 2010 -2011 with the objective of increasing the mineable reserves base up to 262 tonnes under the base-case scenario and up to 359 tonnes under the optimistic scenario. \n· Upon successful completion of the exploration works in 2011, construction of the following is planned for 2013 - 2016 under the base-case scenario:\n(i) New mills at Aksu, Bestobe and Zholymbet with a total capacity of 4.7 mtpa;\n(ii) Heap leaching facilities with processing capacity of 2.2 mtpa.\n Capital expenditures under the base-case scenario are estimated at US$512 mln.\n· Upon the successful completion of the exploration works in 2011, under the optimistic scenario, construction of the following is planned for 2013-2016:\n(iii) New mills at Aksu, Bestobe and Zholymbet with a total capacity of 9.0 mtpa;\n(iv) Heap leaching facilities with processing capacity of 4.3 mtpa.\n Estimated capital expenditures under the optimistic scenario are US$661 mln.\nProduction volume in 2016 would amount to 500 thousand ounces under the base-case scenario of the Company's development and 640 thousand ounces under the optimistic scenario.\nThe Board of Directors has approved the development strategy of KazakhGold Group Limited until 2020. The Board has also approved the capital expenditure budget for 2010 - 2013 for the total sum of US$ 202 mln for modern...