Central Asia Resources (ASX: CVR) is progressing towards gold sales from the company’s Dalabai Gold Project in Kazakhstan after beginning the gold extraction process.
Cyanide leaching began on February 24, and gold in solution has now reached concentrations that allow for the transfer to resin.
The return solution gold concentration is at levels of 1.3 milligrams per litre, and the company is putting gold to resin at a rate of 10 grams per hour.
An additional cell has been brought in for processing to the initial 40,000 tonnes, doubling the gold collection rate.
Central Asia is targeting a 160,000 tonne leach pad for Dalabai and plans to gradually increase processing levels over the next six months.
The Dalabai project has a total Indicated and Inferred Resource of 3.98 million tonnes at 0.97 grams per tonne for 124,000 ounces of gold.
Central Asia is undertaking a $1 million exploration program to potentially increase production and extend the mine life.
Gold production at Dalabai was delayed by extreme winter temperatures in Kazakhstan and fouling problems with the heat exchangers, which are required for temperatures of minus 20 degrees Celsius.
As the weather warms up, these exchangers can be pulled out of duty for cleaning.
$2 million capital raising
Early in February Central Asia announced a share placement, which will primarily be used to ramp up gold processing at Dalabai.
The company has received placement commitments to raise around A$2 million from professional and sophisticated investors.
The placement will comprise 80 million shares at $0.025, and will be completed under the company's placement capacity.