GoldBridges Global Resources Expects Cash Costs Of Sekisovskoye To Fall In 2019

GoldBridges Global Resources Expects Cash Costs Of Sekisovskoye To Fall In 2019

GoldBridges Global Resources PLC on Thursday said it expects the all-in sustaining cost of the Sekisovskoye underground mine to be USD900 for 2018, and then to reduce in 2019.

The mining company said by the end of 2018, the production run rate of the mine in Kazakhstan is expected to be sufficient to reach around 100,000 ounces of gold production per annum. Once this level is achieved on an annual basis, the all-in sustaining cost is expected to fall to around USD620 for 2019.

GoldBridges said the anticipated cash costs and production levels are based on its internal projections and are dependent on it obtaining sufficient funding on a timely basis to complete the mine expansion.

Shares in GoldBridges were down 6.9% at 1.70 pence on Thursday afternoon.

Information on the Company

GoldBridges is a gold mining, exploration and development group based in Kazakhstan. Whilst the Company was initially established to exclusively develop and operate the Sekisovskoye gold and silver mine in the East Kazakhstan Region, it is now actively targeting additional gold mining opportunities in Kazakhstan. This includes the adjacent prospective Karasuyskoye Ore Fields, on which GoldBridges was recently awarded the tender to perform further confirmatory testing in order to gain the sub-soil user licence.

The Company holds a 100 per cent shareholding in DTOO Gornorudnoe Predpriatie Sekisovskoye (“DGPS”) which holds a subsoil use contract in relation to the Sekisovskoye deposit, covering a total area of 0.855km². The subsoil use contract for Sekisovskoye is valid until 2020 and the Company currently intends to seek to extend the contract in accordance with its terms. The Company also holds a 100 per cent shareholding in Altai Ken-Bayitu LLP which owns and operates the processing plant at the Sekisovskoye deposit. The Sekisovskoye deposit is located at the village of Sekisovskoye, approximately 40km north of the town of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region. The current operation is focused on mining the near-vertical deposits which extend to the surface below the open pits which have been previously mined.

The Company intends that the Sekisovskoye deposit shall become a selective-mining underground operation. As at 31 May 2014, the Company’s proven and probable reserves consisted of 2.3Moz of gold and 3.0Moz of silver and the Company’s measured, indicated and inferred resources consisted of 5.1Moz of gold and 3.5Moz of silver, in each case as classified in accordance with JORC.

In the year ended 31 December 2015, the Company’s consolidated revenue was US$24.05 million and its net assets US$38.4 million.