Kentor Gold (ASX: KGL) has the support of the Kyrgyz Government, which is calling for Parliament to reconsider a resolution passed last June against the development of the company's 80%-owned Andash Gold-Copper Project.
Following the request, made last week to a meeting of the Kyrgyz Parliamentary Committee on Development of Economic Sectors, the committee has sought clarification of the Government's position by 10 April.
While development-ready and backed by the Kyrgyz Government, the Andash project still requires the formal approval of the local community.
In December last year a general meeting was held in Kopurer Bazaar, the village located near the Andash project.
The unanimous outcome of the meeting was that a traditional decision making meeting will be held regarding the development of the Andash project, with the consideration of a granting of a social licence one of the things on the agenda.
Kentor Gold managing director Simon Milroy welcomed the progress towards the project's development.
"It is good to see the Parliamentary Committee and the Government working together to resolve the issues with the development of the Andash deposit," Mr Milroy said.
"The clear articulation of their positions on the development of the project is required from both the Government and Parliament before the full support of the local community can be obtained."
The resolution passed in 2011 recommended that the Government cancel the mining licence and land allotment of Andash Mining Company, following claims of potential environmental damage and impact on the local community.
The Kyrgyz Government was quick to rebut the claims asserting the Andash project was in full compliance.
Once Kentor has received final approval and gained site access, the company will begin a three month geotechnical investigation program and then proceed with the construction program.
The high grade, low cost Andash Copper-Gold Project is targeting a 2013 start to production at an initial rate of 70,000 gold ounces and 7,400 tonnes of copper annually for an initial six years, with high potential for expansion.
Andash is tipped to be a larger producer than Kentor's Murchison project and at the extremely low cost of US$29 per ounce.