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Korab starts construction in the Ukraine

7th March 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold developer Korab Resources on Thursday announced that it had started construction of a processing plant and ancillary infrastructure at its Bobrikovo gold project, in the Ukraine.

The miner recently improved the project’s economics with the introduction of a Stage 1 processing plant to the mine plan, which would cost some A$700 000, and could process 20 000 t/m of ore, translating into a production of 11 730 oz/y and realising a profit of A$11.5-million.

Korab told shareholders that Stage 1 processing offered an attractive additional revenue stream at a relatively low capital cost, as well as the opportunity to start production from the ore already stockpiled on site, and the opportunity to generate early cash flows from gold sales well in advance of the completion of the purpose-designed plant.

The miner noted that the Stage 1 plant was not an alternative to the purpose-designed plant, which would now be classified as Stage 2 of the operation and would cost an estimated A$4-million, but rather an additional processing capacity that would offer dual benefits.

Apart from an early cash flow, the Stage 1 plant would also allow Korab to run the second-hand plant in parallel with the purpose-designed plant, doubling the production rate.

The Bobrikovo project contains some 2.04-million ounces of gold, and was currently undergoing a resource upgrade.

Korab has been selectively mining and stockpiling oxide ore at Bobrikovo on a campaign basis for several years, with the ore segregated into high-, medium- and low-grade ores, which were ready for processing.

Edited by Creamer Media Reporter

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