Description

Kazakhstan

Business ID: L#20230491

This deposit has been key feeder for the giant Balkhash smelter, responsible for 65% of Kazakhstan’s copper production. Dumps of over 300mln ton accumulated from 40 yrs of operation

Resource Analysis

• Wardell Armstrong (MRI, PCR) 2020
• During2015-2016 ,the Company undertook exploration:
• Reverse circulation(RC)drilling–47holes
• SurfacePitting–141
• ToePitting–26
• more than 900 ore samples

SX-EW plant Results

• The pilot plant commissioned in autumn 2017 and produced first copper in November 2017.
• Following remedial work on the leaching pad and collection system in spring of 2018, the plant has reached a steady-state production with PLS ERE grcae of 1.5-1.6 g/L, and average daily production of 200 kg of copper cathode
• Over 36 tons of cathode copper sold on the local market at near LME prices.
• 1.2 km electric line fo the site and 630 kW transformer — completed and connected fo local electric grid
• 400 m access road to the site — completed
• 1.1 km water pipeline fo the site — completed
• Building for the SX-EW pilot plant — completed, insulation and ventilation installed
• 1 km of piping for the heap irrigation — purchased, connected and laid out
• Ponds and collection trenches — completed and lined with geomembrane

SX-EW Business Model

• Planned annual production: 10,000 fons of LME grade “A” cathode copper
• A 23-year copper production contract with the government of Kazakhstan signed in May 2017.
• Key production cost drivers:

1. Chemicals & Reagents and Power (variable) — favorable geographic location helps keeping these costs low
2. Labor and Production Overheads (fixed)

•  Mineral Extraction Tax @ 5.7% on value of copper in PLS
•  Distribution & Selling — mix of fixed and variable driven by local Infrastructure and T&C of the oft-take contract