KAZAKHSTAN - Work continues toward start up of EUROPEAN MINERALS' Varvarinskoye gold project in Kazakhstan. The company has committed US$145 million to develop the mine and mill for production in the second quarter of 2007.
The company says the deposit has simple metallurgy, strong economics and potential for expansion. The plant is expected to treat 4.2 million tonnes of ore per year; the mine will have a waste to ore stripping ratio of 4.17:1. As currently envisaged, the mine has a life of 15 years.
Construction began on the site a year ago. Three blasthole drill rigs have been ordered, and the mining fleet has arrived. Overburden stripping is well underway, and the first part of the orebody should be exposed in about three months. Construction of the tailings dam was on schedule and on budget. During the first half of 2006, the permanent workshop was completed.
The Varvarinskoye deposit contains proven and probable reserves of 60.30 million tonnes grading 1.21 g/t Au and measured and indicated resources of 117.62 million tonnes grading 1.01 g/t Au. European Minerals estimates that there is a total of over 6.0 million oz of contained gold and 700.0 million lb of copper.
More information about the project and Kazakhstan is posted at www.EuropeanMinerals.com.