Central Asia Resources (ASX: CVR) could boost gold sales and revenues by around US$1.5 million once the construction of a second heap leach pad is completed at its Dalabai Gold Project in Kazakhstan.
The second pad would cost approximately $800,000 and would be funded through cash flow. Production would be boosted by 1,000 ounces to 2,000 ounces.
The Company received about US$1.5M from gold sales at Dalabai last month.
Completion of the second heap leach pad is expected in November.
The company also has about 1,000 ounces, from production in June, on resin which will be trucked to mining services company Dank in Semey, Kazakhstan for processing.
Ore treatment agreement
In mid-June Central Asia inked a memorandum of understanding with Kazakhstan gold producer JSC AK Altynamas for the processing of Central Asia’s ore from its Altyntas, Kengir and Kepken deposits at Altynalmas' nearby Akbakai plant.
Kepken is less than 20 kilometres and Kengir is less than 50 kilometres from Altyntas, which makes processing of the ore from these deposits together with ore from Altyntas a viable option.
Altyntas is Central Asia’s largest prospect hosting a defined Resource of about 600,000 ounces of gold.
Kepken hosts 411,000 ounces of gold, while Kengir hosts 127,000 ounces.
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