Uzbek-British JV to explore gold worth $22 million till 2014

Business Materials 15 May 2010 16:48 (UTC +04:00)

Uzbekistan, Tashkent, May 15 / Trend D. Azizov /

British company "Oxus Gold plc" began a five-year-program of drilling on the licensed territory JV Amantaytau Goldfields (AGF) in Uzbekistan (2010-2014), the company said.

"We started a five-year program of drilling, worth $22 million, of which $2.5 million is planned to be spent during 2010", the report said.

JV Amantaytau Goldfields has been founded by the British Oxus Resources Corp. - 50 percent, the Uzbek State Committee for Geology and Mineral Resources - 40 percent and the Navoi Mining and Metallurgical Combine - 10 percent. It has a license for exploitation of Amantaytau field with recoverable reserves of gold and 3.2 million ounces of additional reserves, estimated at more than three million ounces. JV also has a license for four gold deposits, of which the largest one - Uzunbulak with recoverable reserves of 230,000 ounces and high voltage - 600,000 ounces of gold (Central Kyzyl Kum).

Oxus Resources Corp. is a full subsidiary of the British Oxus Gold Plc., established in 1996 to work in the mining industry in Central Asia.

The company plans to increase gold production to 300,000 ounces annually over the next 3-5 years.

JV Amantaytu Goldfields in late 2003 launched the first stage of he factory worth $31 million on deposit Amantaytau in Central Kyzylkum.

The joint venture plans to put into operation the second stage on processing 400,000 tons of oxide ore and producing 100,000 ounces of gold per year during 12 years in the first quarter of 2011.

Uzbekistan ranks ninth in the world in gold production. The volume of gold production is about 80 tons per year.