Business
KazakhGold JV Wins Gold Plant
KazakhGold JV Wins Gold Plant.
About this update from Kazera Global Plc
[{"type":"text","content":"\n KazakhGold Group Ltd\n24 November 2006\n\n November 24, 2006\n\n\n\n KazakhGold-Oxus Joint Venture Successfully Bids For\n Transgold Plant And Deposits In Romania\n\n \n• Plant And Related Assets Acquired For US$6.99 Million\n\n• New 50:50 Romaltyn JV Set Up To Manage Project\n\n• Low Cost High Return Cash Generative Gold Venture\n\n\nKazakhGold Group Limited (London: KZG) announces that, together with AIM-listed\nOxus Gold, it has successfully bid US$6.99 million (inclusive of US$1.12m VAT)\nin open auction for the assets of a gold project in Romania that were put into\nin liquidation in April, 2005. The newly formed 50:50 joint venture, Romaltyn,\nexpects to recommission the project and bring it back into production in\napproximately six months time. The project offers the potential to generate\nrapid payback on investment and provides an opportunity for exploration and\ndevelopment of additional resources in the area.\n\nThe assets include a 2.5mt/yr gold treatment plant, formerly operated by\nTransgold, a 50:50 joint venture company between Eurogold and Remin, the\nRomanian state mining company. The plant, located on the outskirts of the town\nof Baia Mare, ceased operation in 2005 when the tailings line froze and\ninsufficient funds were available to rectify the problem.\n\nOther assets acquired by the Romaltyn JV are the 8.5m tonnes Central Tailings\ndump located 7.8km from the plant, together with stockpiled gold-bearing pyrite\nresources and two exploration tenements, Sophia and June 11, over which 12-month\nexploration licences will be re-instated.\n\nIn a second auction, the two JV companies paid US$300,000 for Explorer SA, a\ncompany in voluntary liquidation which holds three further exploration tenements\nin the area, the largest of which, Rascau South East, has a three-year\nexploration licence.\n\nThe Transgold plant was designed and built by Lycopodium for US$28m and has an\nestimated replacement cost of around US$40m. The JV estimates that it can be\nbrought back into production after expenditure of approximately US$5.25m on\nclean-up, minor repairs and the replacement of some equipment. Thus the total\nfinancial commitment by the joint venture is estimated to be US$12.54m.\n\n\n\n\n\n\n\n\nOnce recommissioned, the plant would treat approximately 2m tonnes of tailings\nin the first year. The average reco...