Perth-based Central Asia Resources (ASX: CVR) has achieved a milestone at its Dalabai Gold Project - commencing mining in Kazakhstan, yesterday.
Placing Central Asia on schedule to transition to a gold producer in late 2011.
Mining has commenced at 1,000 tonnes per day, however it is planned to increase this to 1,500 tonnes per day. Crushing has commenced at 500 tonnes per day.
At this rate, Central Asia would be producing gold at an average annualised production rate of 15,000 ounces of gold per year. The planned increases in crushing capacity would double production to an expected 30,000 ounces per year in 2012.
Construction of the processing facility and the application for the minerals processing license are on schedule. Mining and crushing at the expected rates will mean that the heap will also be ready on schedule.
Interestingly, Dalabai is just the first of Central Asia's projects to be developed. The company will also be drilling at Bizhe, Altyntas and Dalabai in late 2012 2011 and for most of 2012 to increase resources and to ultimately production.
Central Asia has a total resource inventory of 1.285 million ounces at an average of 1.16 g/t gold.