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Construction of the processing plant for extracting of g old and silver from the Old Tailing Dump of JSC Zyryanovsk Lead-Mining Complex in East-Kazakhstan region. Old Tailing Dump JSC Zyryanovsk Lead-Mining Complex. Area of the geologic removal = 1 . 31 sq. km .
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Construction of the processing plant for extracting of gold and silver from the Old Tailing Dump of JSC Zyryanovsk Lead-Mining Complex in East-Kazakhstan region
Area of the geologic removal = 1.31 sq.km. Tonnage of the reject materials = 36 million tonnes The report on evaluation of mineral resources was compiled in accordance with the JORC Code by JORC Consulting company, the project leader – AndreyKrasnykh,member of theAustralian Institute of Geoscientists (AIG) (Membership 4035)
Magma WestLLP has fully completed the exploration of the deposit • On February 8, 2012 there was a memorandum on investment of 100 million euros in the project signed with German company DEB Deutsche ErzeBeteiligungs AG • On April 24, 2012 Magma West LLP (Astana), Di-As Company Ltd (Zyryanovsk) and DEB AG (Bad Homburg) signed the trilateral contract on joint-activities(consortium).
In compliance with the subsoil contract and the agreements reached, there were over • 5 million U.S. dollars • invested in the project in the period from • 2005 to 2012. • In2013 – 2014– planned transition to the pilot production (gravity concentration) • in 2 stages • In case of positive results - > Construction of the processing plant with the combined scheme of concentration
As of today: • Process regulations, technical project and preliminary environmental impact assessment (EIA) have been already developed, agreed on and approved by the relevant authorities • Project of the evaluation works, with the section devoted to the pilot production has been already developed and is in the process of being approved
As of today: • The is a state license obtained for design works (technological) and (or) operating of mining, petrochemical, chemical productions and other activities • Power line and integrated transformer substation were built
As of today: The equipment for gravity concentration was installed and debugged.
A standard set of equipment and machines for the first stage of processing 1 loader Brenner 936 1 excavatorHitachi ZX400LCH-3 3dump trucks HOWO 6x4ZZ3257M364W 1 scrubber-washing drumSB -15 Hangar 2 concentratorsITOMAK (KGM-10 и KGM-40 DK)
Approximate cost of the standard set of equipment and machines for the first stage of processing
Expected financial indicators on the first stage of the production (gravity concentration): • -Annual volume of extraction = 350 thousand tonnes • -Gross annual income = 3 310 000 U.S. dollars • -Net annual income = 1 210 000 U.S. dollars • Taxes and payments to the budget per annum • = 291 500 U.S. dollars • Number of jobs created = 49 • - Average salary = 600 U.S. dollars
A standard set of equipment and machines for the second stage of processing 2 hangars 2loaders Brenner 936 2excavatorsHitachi ZX400LCH-3 6 dump trucks HOWO 6x4ZZ3257M364W 4 jig units MOD-2 4concentrators ITOMAK ( KGM-40 DK andMKG-120) 2scrubber-washing drum SB-22 4Hydraulic cyclonesGTSR-500 1 dredgerHydromec 2000Eh
Approximate cost of the standard set of equipment and machines for the second stage of processing
Expected financial indicators on the second stage of the production (gravity concentration): • -Annual volume of extraction = 1 050 thous. tonnes • -Gross annual income =9 900 000 U.S. dollars • - Net annual income = 3700 000 U.S. dollars • - Taxes and payments to the budget per annum • =875000 U.S. dollars • - Number of jobs created = 147 • - Average salary = 600 U.S. dollars
Third stage – construction of the plant with the combined scheme of processing • (the pre-feasibility study • has been already developed) • - Net present value (NPV) • = 81 500 000 U.S. dollars • Internal Rate of Return (IRR) • = 38.8 % • Discounted Payback Period • = 4.3 years • The calculations were made with • a very conservative price for gold.