PROJECT SUMMARY:

Andash

Savoyardy Gold

Geothermal Energy

Akbel / Bashkol

Kyrgyz Republic

Kentor Gold’s priority is the development of the high grade, low cost Andash Gold-Copper Project in the Kyrgyz Republic, and the Company strives to become a mid-tier gold producer. 

Initial production of 70,000 oz gold and 7.400 tonnes copper in a single concentrate is targeted to commence early in 2012.  Assessments of high grade gold prospects surrounding Andash point to the potential to increase production and extend mine life. 

Kentor Gold is focussed on Andash and a small group of other gold and geothermal energy assets in the Kyrgyz Republic. One of the world’s largest gold provinces runs through the Kyrgyz Republic where the Company has been entrenching its presence over recent years. 

Further exploration is being planned for the Bashkol gold prospect and is being considered for Kurgan. 

KENTOR GOLD TENEMENT LOCATION

THE KYRGYZ REPUBLIC - COUNTRY OVERVIEW

Demographics and Geography

The Kyrgyz Republic is a landlocked, independent republic situated in Central Asia. It is bordered by Kazakhstan in the north, China in the east, Tajikistan in the south and Uzbekistan in the west. The capital city of Bishkek is located in the northern part of the country. Osh is the second largest city, located in the south. The population of the Kyrgyz Republic is approximately 5 million people.

The Kyrgyz Republic has a total area of approximately 200,000 km2 - about the same size as the Australian State of Victoria. The climate varies greatly: dry continental to polar in the high Tien Shan region; subtropical in the south-west Fergana Valley; and temperate in the northern foothill zone. The mountainous peaks, associated valleys and extensive river systems of the Tien Shan encompass the entire nation.

The official languages of the Kyrgyz Republic are Kyrgyz and Russian. In terms of religion, 75% of the country is Muslim, and 20% Russian Orthodox.

Politics and Government

The area that is now the Kyrgyz Republic was annexed by Russia in 1864. The country declared its independence from the Soviet Union in 1991 and became a member of the Commonwealth of Independent States (CIS).

The year 2010 was a watershed in government in the Kyrgyz Republic.  President Kurmanbek Bakiev was deposed and replaced by an interim government.  He had been elected following an uprising in 2005 when the previous President Askar Akaev was ousted due to perceptions of nepotism, corruption and other abuses of power. The optimism that accompanied President Bakiev’s presidency faded to disillusionment as he was criticised for centralising and cementing his grip on power and favouring family and clan members in government appointments.

The interim government led by Roza Otunbayeva committed the country to full parliamentary democracy.  Despite regrettable violence and loss of life in the country’s south, a referendum in June adopted a new constitution ensuring power was no longer centralised with the president and devolving more power to the parliament, and confirmed Ms Otunbayeva as interim President until 2011.  Parliamentary elections were held in October, and a coalition government negotiated and formed in December.

Economy

The national currency of the Kyrgyz Republic, the Som, is freely convertible at a floating exchange rate and has remained relatively stable since 2004. The economy is predominantly agricultural with two thirds of the country's population living in rural areas. The country contains deposits of gold and rare earth metals as well as coal, oil and natural gas.

The Kyrgyz economy has undergone a transition to a market-oriented economy with support of leading international development institutions such as: the International Monetary Fund (IMF); the World Bank; the Asian Development Bank (ADB); and the European Bank for Reconstruction and Development (EBRD).

The Kyrgyz Republic was one of the first member-countries in the CIS and became a member of the World Trade Organiszation (WTO) in 1998 to enhance its economy through increased international trade.

The relatively small size of the economy means that mining and, specifically the Kumtor mine operated by Canadian company Centerra Gold Inc, plays a particularly important role in the economy. Kumtor has operated since 1997 and is the largest private sector employer and foreign investment in the country. It contributes more than 30% of Kyrgyz export earnings and about 10% of tax revenues. Consequently, exploration and potential mine development has a very high profile within the country with several western companies engaged there.

The income tax rate remains low at 10 percent for both individuals and corporations. Since 2008, the Kyrgyz Government has been making efforts to improve fiscal regulation through the adoption of a new tax code. It is believed that the new tax code will respond to modern economic trends and simulate business activities.

Chairman, Non-Executive: John Barr AM, MAICD

John Barr has had a long involvement with the Australian minerals and metals industry having been Managing Director of Metallgesellschaft’s Australian subsidiary since the company’s inception in 1974 until his retirement in 1994. He is a Director of Iluka Resources Limited and a former Director of Acacia Resources Ltd, Oxiana Limited, and Transurban City Link Ltd. In August 2005 he retired as Chairman of Utilities of Australia Pty Ltd, a major unlisted infrastructure investment fund.

Managing Director: Simon Milroy

Simon Milroy is a mining engineer with twenty years experience across a diverse range of metals. He has spent the last seven years working in South East Asia on mining development projects. His most recent experience has been with Kingsgate in Thailand and with Pan Australian Resources in Laos. Simon is a member of the Australian Institute of Mining and Metallurgy.

Executive Director, Country Manager and General Director – CJSC Kentor: Hugh McKinnon B.Eng. (Mining)

Hugh McKinnon has been involved in the mining industry in Australia, Africa, and Asia for 30 years in activities ranging from exploration ventures to mine production. Since early 1996 he has worked on mining and exploration projects across Central Asia from Tajikistan to Mongolia, with a particular interest in the Kyrgyz Republic. Hugh speaks competent Russian.

Director, Non-executive: Andrew Daley BSc (Hons) (Mining)

Andrew Daley is a mining engineer and resources finance executive. Andrew spent several years working on mining projects in Africa before relocating to Australia as Senior Engineer with Fluor Australia in 1981. Since then he has had a long career in international investment banking and held senior positions with NAB, Barclays, and Chase Manhattan. He is a Chartered Engineer, a former Director of Oxiana Limited, a Director of Pan Australian Resources Limited, Dragon Mining NL, a Member of IOM3 and a Fellow of the Australasian Institute of Mining and Metallurgy.

Director, Non-executive: John Taylor B. Eng (Chemical); MBA

Director, Non Executive (John Taylor is currently the MD of Outotec Australasia)

No info available.