Oxus Gold plc, listed in the UK, has just announced a go ahead for Amantaytau Goldfields Underground Sulphide Project in Uzbekistan. The Uzbekistan gold and silver producer wants to develop underground sulphide mining at its 50% owned Amantaytau Goldfields Joint Venture.
The conclusion is that development of a 1.2mtpa underground gold mine and process plant based on the current reserves at the Severny and Centralny ore deposits is technically and commercially feasible. The Project will exploit a reserve of 1.74Moz within a resource of 2.99Moz, over an initial 7 year life at the Sulphide Project, producing up to 270,000 oz gold per annum.
Total costs are an average of US$ 402 per oz gold produced over the initial 7 year life of mine, including operating taxes, royalties and management fees. The ungeared after tax NPV for the Project is US$ 329 million at 7% discount rate per annum