There has been no change to the resource of 8.066 million tonnes at 2.69 grams per tonne, or 697,000 ounces of gold from its March 2013 estimate.
Earlier in the year Manas received full support from the Kyrgyz Republic Prime Minister at that time, Jantoro Satybaldiev, and local officials for the project's development.
It has completed a Bankable Feasibility Study that projects potential for all-in cash costs of under US$700, placing it among the lowest global quartile of costs in the gold sector.
The project has also been issued a mining and development licence with the major part of permitting completed.
With mineralisation remaining open at depth and along strike, there is potential for the additional resources to be identified.
Shambesai Gold Project
Shambesai is a Carlin style gold deposit hosted within an east west striking, south dipping, folded sequence of carboniferous sedimentary rocks on the Tien Shan gold belt in the south west of the Kyrgyz Republic.
The Resource estimate is based on 66 trenches and 275 diamond drillholes drilled primarily from surface at nominal patterns of 25 metres by 25 metres, grading to 50 metre by 50 metre patterns at depth.
This has been classified and reported in accordance with JORC 2012 standards based on confidence in the QAQC data analysis, geological interpretation, drill spacing and geostatistical measures.
Manas previously defined a Proven and Probable JORC Reserve of 2.5 million tonnes at 3.4g/t, or 277,000 ounces of gold.
Study highlights low OPEX and CAPEX
Besides projecting potential for all-in cash costs of under US$700, the BFS has also delivered the following metrics:
- Net cash flow US$148 million after capital, taxes and royalties (excluding financing costs) from the production of 227,000 ounces of gold over a 4.5 year mine life at US$1,400 gold price;
- Average Life of Mine cash costs (C1 costs excluding royalty) of US$387/ounce;
- Total Life of Mine (C3) after capital and tax estimated to be US$676/ounce;
- Capital expenditure to first gold pour of US$41.3 million with an expected pay back of 11 months;
- After-Tax Net Present Value (NYSE:NPV) of US$105 million with an Internal Rate of Return of 67% at an 8% discount rate and US$1,400 gold price; and
- Simple, low-cost vat leach and heap leach operation with projected 84.8% overall gold recovery, including +90% gold recovery for oxide material which contributes +90% of the total gold recovered.
Manas is currently updating the BFS. It has a Resource base of 1,184,000 ounces of gold at the Shambesai and Obdilla prospects, which are only seven kilometres apart.
Permitting on the final lap
Manas has completed the major part of permitting its Shambesai Gold Project with approval of the Sanitary Protection Zone (SPZ or buffer zone).
The SPZ is the final part of the Kyrgyz Republic Environmental and Social Impact Assessment process and allows the completion of final design permitting and community consultation for the project.
A buffer zone is established around all industrial and mining facilities under Kyrgyz environmental legislation where activities are controlled to ensure any potential possible environmental impacts are limited.
In the case of Shambesai it confirms that the project is likely to have minimal to no impact on any current agricultural and residential use, thus reducing the level of compensation required.
Work is underway towards obtaining approval of the final design and infrastructure permits required to commence construction.
The first step, the environmental audit of the Process Plant Basic Engineering, was successfully completed, and the technical and safety review is currently underway.
Cost cutting measures have also been put into place that should see estimated administration and project expenditure drop to $650,000 for the December Quarter.
With the update of the Shambesai resource to JORC 2012 standards, Manas Resources can continue its drive to develop the low-risk, high margin project.
It is worth repeating the projected all-in cash costs of under US$700 - among the lowest global quartile of costs in the gold sector - and Capex of US$41.3 million.
Adding to this, the project has strong government support having received earlier this year full support from the Kyrgyz Republic Prime Minister at that time, Jantoro Satybaldiev, and local officials for its development.
It has completed a Bankable Feasibility Study, and a mining and development licence has been issued.
At the end of September 2014, the company held $1.5 million in cash plus listed securities of around $300,000.
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