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Manas opts for smaller pit, slashes Shambesai capital cost by 20%

22nd February 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – A reoptimised openpit design at ASX-listed Manas Resources’ Shambesai gold project, in the Kyrgyz Republic, has reduced the estimated life-of-mine capital costs from $48-million to $38-million.

The company noted that the revised design for a smaller main pit, in its latest bankable feasibility study (BFS), used a $1 100/oz gold price pit shell instead of $1 500/oz.

The small pit design was currently being considered in conjunction with an  underground mine as an alternative development path, which could also significantly extend the mine life and profitability. It further reduced material movement by 50% and contained gold by 13%, while increasing gold grade to 3.9 g/t, up from 3.7 g/t.

Reduced material movements for the small pit would further eliminate the need to buy a second excavator for waste mining, which reduced capital requirements by $765 000.

The BFS also updated the average cash cost to $314/oz, down from $416/oz.

Meanwhile, Manas had also revised its  preproduction  capital  cost  from $41-million, to $27-million, while the revised net present value increased from $68-million to $83-million.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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