Manas Resources (ASX: MSR) has hit the ground running in Kyrgyz Republic with an aggressive exploration program which includes six diamond rigs and two man-portable rigs.
Manas is currently exploring on three different projects within the country, which provides a stable economy with low tax rates that include a flat 10% income and corporate tax, and a royalty of 5% for gold projects.
The drilling program will cover up to 20,000 metres, and is designed to boost the current resource base of 1.13 million gold ounces.
The exploration will also help define more drill targets from the company's 54 exploration targets across the 4,200 square kilometre tenement area.
The program will run alongside the Feasibility Study and mine permitting process for the Shambesai Gold Project, which has the potential to commence production during 2012.
The Scoping Study anticipates Shambesai could produce the first 100,000 ounces at an average head grade of 5.7 g/t gold, in just the first three years at a cash cost of US$180 per ounce.
These figures place the project into the lowest quartile of cash costs for gold producers worldwide.
Manas isn't the only miner with successful mining operations in this central Asian country, with Kentor Golds' (ASX: KGL) Andash gold-copper mine moving forward at pace, with production forecasts of 70,000 ounces of gold and 7,400 tonnes copper in concentrate in early 2012.
The Kyrgyz Republic is not without its challenges but the potential gold endowment in the country is vast and with cash costs of production lower than many African nations. This renders Manas' drill program in 2011 and upcoming news flows as particularly enticing.