The Asia Miner

JAN-FEB 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

Issue link: https://asiaminer.epubxp.com/i/948924

Contents of this Issue

Navigation

Page 73 of 83

72 | ASIA Miner | Volume 15 • Issue 1 | 2018 Central Asia WHITE Cliff Minerals will use the assay re- sults from its 2017 drilling program at the Aucu Gold Project in the Kyrgyz Republic to update a resource estimate. The company is 3D modelling the mineralisation in order to prepare the estimate. In April 2017, White Cliff revealed an in- ferred resource of 1.8 million tonnes grad- ing 5.2 g/t gold for 302,000 ounces of contained gold for the Aucu deposit. With- in this is a high grade zone, Quartz Zone, which contains 244,000 tonnes @ 9.5 g/t for 75,000 ounces. Further drilling at the Quartz Zone in the December quarter intersected significant gold and copper mineralisation including 10.6 metres @ 1.5 g/t gold and 0.6% cop- per. Within this interval the central part of the zone contained 1.6 metres @ 3.9 g/t gold and 0.8% copper and 4 metres @ 1.8 g/t gold and 1% copper. This intersection confirms the extension of the zone at depth over 100 metres below a previous intersection of 8 metres @ 55 g/t. In addition a hole intersected 3 metres @ 3 g/t gold and 0.22% copper from 194 metres below the central part of the zone. This hole is 100 metres below a previous intersection of 12 metres @ 15.6 g/t. Miner- alisation remains open at depth. Drilling at the northwest end of the Quartz Zone has identified more gold and copper mineralisation. One hole intersected 10.6 metres @ 1.5 g/t gold and 0.61% copper from 215 metres, including higher grade in- tervals of 4 metres @ 1.8 g/t gold and 1% copper, and 1.6 metres @ 3.9 g/t gold and 0.8% copper. Another hole has intersected 3 metres @ 3 g/t gold and 0.22% copper from 194 metres below the central part of the Quartz Zone. Mineralisation remains open at depth. Five holes completed in the copper por- phyry zone intersected broad zones of low grade copper mineralisation. These includ- ed 41 metres @ 0.55% copper including 16 metres @ 0.86% copper; 25 metres @ 0.45% copper including 2 metres @ 1.1 % copper; and 34 metres @ 0.41% cop- per with some single metre grades of up to 1.25% copper. Copper mineralisation identified to date is considered to be proximal to the centre of the porphyry system. CAMECO Corporation has restructured Joint Venture Inkai LLP which operates the Inkai Uranium Project in Kazakhstan. The re- structure will result in increased annual production of 10.4 million pounds of uranium from 5.2 million pounds. Cameco's share of annual production is now 4.2 million pounds, up from 3 million before the restructure. JV Inkai now has the right to produce from blocks 1, 2 and 3 until 2045 whereas the previous agreement was to 2024 from block 1 and to 2030 from blocks 2 and 3. The boundaries of blocks 1, 2 and 3 have also been adjusted to match the agreed production profile for JV Inkai to 2045. Under the implementation agreement, Cameco's ownership inter- est in JV Inkai has been adjusted to 40% from 60% and Kazatom- prom's ownership interest has been adjusted to 60% from 40% as of January 1, 2018. As a result, Cameco will account for JV Inkai on an equity basis from that date. Also on January 1, a new governance framework for JV Inkai pro- tecting the rights of Cameco as a minority owner took effect. The loan previously funded by a Cameco subsidiary to JV Inkai to fund exploration and evaluation of block 3 was restructured to provide for priority repayment. Such priority repayment commenced in 2017 and the balance of the loan was US$124 million at the end of the September quarter of 2017. "This agreement is positive for Cameco as it secures our access to a large, low-cost production source through 2045," said Cameco's president and CEO Tim Gitzel. "Production decisions will depend on market conditions and the terms of our resource use contract." Cameco and Kazatomprom have also completed a feasibili- ty study to evaluate the design, construction and operation of a uranium refinery in Kazakhstan with the capacity to produce 6000 tonnes annually as uranium trioxide. A formal joint decision has not yet been made as to whether the refinery will be built. In the event of a joint decision to construct the refinery, further adjustments to Cameco and Kazatomprom's own- ership interests in JV Inkai will be made. Cameco is one of the world's largest uranium producers. Its urani- um products are used to generate clean electricity in nuclear power plants around the world. Cameco Inkai agreement restructured White Cliff preparing new Aucu resource The Aucu Gold Project is in the northwest of the Kyrgyz Republic.

Articles in this issue

Archives of this issue

view archives of The Asia Miner - JAN-FEB 2018