CENTRAL ASIA METALS PLC

Regulatory Filings • Apr 12, 2018

National Storage Mechanism | Additional information

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RNS Number : 6421K

Central Asia Metals PLC

12 April 2018

12 April 2018

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Q1 2018 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q1 2018 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in Macedonia ('Sasa').

Highlights

-      Kounrad

o  Q1 2018 copper production, 3,070 tonnes

-      Sasa

o  Q1 2018 zinc in concentrate production, 5,518 tonnes

o  Q1 2018 lead in concentrate production, 7,020 tonnes

-      Shuak

o  Encouraging assay results

o  2018 proposed $2.5 million exploration programme

CAML production summary

Metal production (tonnes)	Q1 2018	Q1 2017*
Copper	3,070	3,357
Zinc	5,518	5,289
Lead	7,020	7,286

*Q1 2017 zinc and lead production pre-date CAML ownership

Nick Clarke, Chairman, commented:

"These production results demonstrate a good start to the year at both Kounrad and Sasa. Taking seasonal variations in Kazakhstan into account, both of our operations are on track to achieve 2018 production targets, which are 13,000 to 14,000 tonnes of copper cathode, plus 21,000 to 23,000 tonnes of zinc in concentrate and 28,000 to 30,000 tonnes of lead in concentrate."

Kounrad

Kounrad Q1 2018 copper production is 3,070 tonnes. Total Kounrad copper production since operations commenced in 2012 is now 71,496 tonnes.

The winter period was the coldest experienced in five years, with a week in January averaging minus 38 degrees centigrade. The Western Dumps raffinate heating system that formed part of the Stage 2 Expansion programme worked well in its first winter of operation, with 2,302 tonnes of copper being leached from these dumps. This equates to 75% of total Kounrad Q1 2018 production.  

Copper sales during Q1 2018 were 2,527 tonnes.

Sasa

In Q1 2018, mined and processed ore was 192,372 tonnes and 196,364 tonnes respectively. The average head grades for the period were 3.32% zinc and 3.83% lead. The average metallurgical recoveries were 84.6% for zinc and 93.3% for lead.

Sasa produces a zinc concentrate and a separate lead concentrate that contains silver. In Q1 2018, 11,385 tonnes of concentrate containing 48.5% zinc and 9,587 tonnes of concentrate containing 73.2% lead were produced. 

Sasa typically receives from smelters approximately 85% of the value of its zinc in concentrate and approximately 95% of the value of its lead in concentrate. Accordingly, Q1 2018 payable production of zinc was 4,690 tonnes and of lead was 6,669 tonnes. Payable base metal in concentrate sales for the period were 4,584 tonnes of zinc and 6,726 tonnes of lead.   

During Q1 2018, Sasa sold 108,680 ounces of payable silver. Due to an existing streaming agreement with Osisko Gold Royalties, CAML's silver production has been pre-sold.  

	Units	Q1 2018	Q1 2017*
Ore mined	t	192,372	191,939
Plant feed	t	196,364	192,773
Zinc grade	%	3.32	3.21
Zinc recovery	%	84.6	85.5
Lead grade	%	3.83	4.00
Lead recovery	%	93.3	94.4
Zinc concentrate	t (dry)	11,385	10,688
-      Grade	%	48.5	49.5
-      Contained zinc	t	5,518	5,289
Lead concentrate	t (dry)	9,587	10,333
-      Grade	%	73.2	73.1
-      Contained lead	t	7,020	7,286

*Q1 2017 Sasa production pre-dates CAML ownership

Shuak

Following completion of the Shuak 2017 exploration programme, CAML has now received all assay results for the diamond and core hydrotransport ('CHT') drilling undertaken.

The new areas of oxide mineralisation that have been identified at the Kyzyl-Sor prospect have an estimated average thickness of 46 metres at an estimated average copper grade of 0.32% based on CHT drilling, although these estimates will not form part of any resource estimation.

Core from diamond drilling demonstrated intersections in the oxide material such as 41 metres at a copper grade of 0.51% from a depth of 3 metres and 45 metres at a copper grade of 0.28% from a depth of 2 metres.

Examples of encouraging sulphide intervals are 23 metres at a copper grade of 0.94% from a depth of 55 metres and 32 metres at a copper grade of 0.72% from a depth of 81 metres.

The following table demonstrates some notable drilling results in oxidised material.

Prospect	Drill hole	From (m)	Intersection (m)	Cu (%)
Mongol V	MN1	3.0	47.0	0.29
Mongol V	MN2	0.5	49.2	0.24
Mongol V	MN5	0.4	18.6	0.24
Mongol V	MN14	6.0	24.7	0.28
Mongol V	MN15	0.6	20.1	0.23
Mongol North	MN9	4.9	13.1	0.15
Mongol North	MN13	14.6	33.4	0.26
Mongol I-II	MM2	0.2	13.9	0.39
Mongol I-II	MM2	25.8	15.9	0.36
Mongol I-II	MM4	0.5	58.3	0.44
Mongol I-II	MM9	21.3	54.7	0.22
Kyzyl-Sor	KS1	2.2	45.1	0.28
Kyzyl-Sor	KS2	31.1	10.5	0.22
Kyzyl-Sor	KS4	0.4	37.8	0.28
Kyzyl-Sor	KS6	5.0	59.0	0.13
Kyzyl-Sor	KS12	3.1	41.0	0.51
Kyzyl-Sor	KS13	5.5	50.8	0.26
Kyzyl-Sor	KS15	9.3	32.7	0.20

The following table demonstrates some notable drilling results in sulphide material.

Prospect	Drill hole	From (m)	Intersection (m)	Cu (%)
Mongol V	MN2	78.3	27.4	0.58
Mongol V	MN3	55.0	23.0	0.94
Mongol V	MN4	81.0	32.3	0.72
Mongol V	MN5	71.0	30.3	0.31
Mongol V	MN6	38.2	22.7	0.98
Mongol V	MN14	60.0	35.4	0.59
Mongol V	MN15	64.9	24.1	0.57
Mongol V	MN15	238.0	17.0	0.67
Mongol V	MN15	328.5	12.7	0.60
Mongol North	MN9	37.0	18.0	0.59
Mongol North	MN9	95.4	21.2	0.55
Mongol I-II	MM1	21.7	97.3	0.20
Mongol I-II	MM2	44.1	22.5	1.74
Mongol I-II	MM2	74.5	9.5	1.21

While these intersections are encouraging, CAML will undertake additional drilling and exploration in 2018 in order to better understand likely continuity or resource potential of the Shuak licence.

The table below highlights the $2.5 million proposed 2018 Shuak exploration programme.

	South Shuak	Deep zones	Kyzyl-Sor	Mongol I	Mongol V	Total
CHT drilling (m)	6,000		7,500	1,200	1,000	15,700
Diamond drilling (m)	1,500	1,500	2,000	2,000	1,500	8,500
Geophysics, TEM-FAST (no. lines)	35	-	-	5	-	40
Geophysics, induced polarisation (no. lines)	-	40	-	-	-	40

For further information contact:

Central Asia Metals	Tel: +44 (0) 20 7898 9001
Nick Clarke, Chairman
Nigel Robinson, CFO
Louise Wrathall, Investor Relations	louise.wrathall@centralasiametals.com
Peel Hunt (Nominated Advisor and Joint Broker)	Tel: +44 (0) 20 7418 8900
Ross Allister
James Bavister
Mirabaud Securities (Joint Broker)	Tel: +44 (0) 20 3167 7221
Peter Krens
Blytheweigh (PR Advisors)	Tel: +44 (0) 20 7138 3204
Tim Blythe
Camilla Horsfall
Megan Ray

Qualified Person Statement:

The technical information contained in this announcement has been reviewed and approved by Nick Clarke, CAML Chairman, a qualified Chartered Engineer and member of the Institute of Materials, Minerals and Mining (MIMMM).

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in Macedonia. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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