Asacha
Location
Asacha is located in the Kamchatka krai, occupying a 1000 km peninsular in Far East Russia. By road Asacha is some 150 kilometres to the south of the port of Petropavlovsk - Kamchatsky, the regional capital. The first 90 km of the road is mostly paved, being the road to the Mutnovskaya geothermal power station. From the turn-off to the site is a 60 km long unpaved all-weather road that has been constructed by the company.
Map of the Kamchatka Region (new window)
Environmental
Asacha Environmental Assessment, Nov. 2004 PDF (2.7Mb)
Ownership
The Company holds a 95.03% interest in Trevozhnoye Zarevo (TZ) which holds mining and exploration licences covering both the Asacha (24km2) and Rodnikova (16km2) deposits. The Company has an obligation to acquire the remaining 4.97% of TZ for US$500,000 once TZ has received the required construction permit for dangerous objects.
History
- VNIPI Feasibility Study - 2003
- Additional Metallurgical Testwork - 2005-2007
- Environmental Impact Assessment - 2005
- Environmental Management Plan - 2006
- New Mineral Resource/Ore Reserve Estimate - 2006
- Development mining commenced - 2007
- Business Plan and Capital Cost Update - May 2008
Status
A self propelled Boomer 282 drilling rig was delivered to site and two underground dump trucks are expected to be operational by the end of September 2008. In the first half of 2008, more than 300 metres of mine development were completed, with an additional 314 metres by the end of August 2008. A new brigade of experienced miners from the Magadan region arrived at site in June 2008. Construction of a second portal has commenced and both portal areas prepared for operational use. It is now planned to manufacture explosives on site and the process to obtain the necessary permit has started.
The Chinese manufactured main process plant equipment was transported to Vladivostok and the first shipment reached Kamchatka in early September 2008. The KEMIX screens were shipped from Durban and were expected at site by the end of September 2008. Excavation of the plant's foundation area and its gravel backfilling was completed by July 2008. The construction of concrete bedding for the plant has been completed with major concrete operations commencing in the second half of September 2008, utilising both fixed and mobile mixing units, a pump and pipeline to deliver concrete up to 300 metres. Contracts for delivery of pumps, lifting equipment and smelting unit have been signed and contracts for the remaining auxiliary equipment (compressors, sampling, etc) for the plant are being prepared.
Shipment of three containerised 1MW diesel power units equipped with a heat utilisation system is expected in September 2008. Three substations and indoor switchgear have also been shipped to Kamchatka. The primary section of the design documentation of the external 35kV power supply system is now being permitted in Kamchatka.
The road between the plant site and the tailings storage site has been completed. The first tailings storage compartment has been cleared of trees and more than 50% of its vegetation cover. 150,000 sq metres of film screen for the tailings facility has been shipped from its manufacturer. The ditch to drain water from the tailings sites is under construction.
The accommodation camp's boiler house has been completed. The boiler house will be commissioned in spring 2009 when the heating system is constructed. Temporary water supply, heating and hot water supply and power have been organised. The first of two cold warehouses was nearing completion during the third quarter, with foundations for the second unit completed.
An on-site crushing and screening plant processed more than 4,000 cubic metres of basalt in its first three months of operation, for use in the gravel bedding of foundations, concrete works throughout the construction site and maintenance of on-site roads.
The total capital cost of the Asacha project prior to commencement of production is now estimated at $106.7 million, net of $9.2 million VAT recoveries, compared to the May 2008 estimate of $105.6 million. The May estimate included a $3.5 million net increase in pre-start up capital expenditure for the provision of external power supply. Other capital cost increases, including those reflecting the assumption of a stronger Russian rouble, have been substantially offset by savings in other areas, including design revisions and the use of own labour and equipment for much of the infrastructure and tailings dam construction. The total project cost includes pre-commissioning mining costs of $5 million, other pre-operating expenditure of $24.4 million, 'first fill' equipment spares and consumables of $1 million and contingency of $1.8 million.
Actual expenditure on the project up to July 2008 amounted to $67.5 million, net of $1.4m VAT recovered. The remaining costs prior to the commencement of production are estimated at $39.2 million, net of further VAT recoveries of $7.8 million, comprising:
| $ million | ||
|---|---|---|
| Capital expenditure | Mine and mining equipment and facilities | 6.7 |
| Gold plant, site facilities and tailings storage (1st phase) | 12.3 | |
| Off-site power supply and other infrastructure | 16.4 | |
| Contingency | 1.8 | |
| Total capital | 37.2 | |
| Other costs | Pre-production mining, spares and consumables and other operating costs | 9.8 |
| 47.0 | ||
| Less VAT recoveries | 7.8 | |
| 39.2 |
A further $10.1 million of capital expenditure will be incurred after the commencement of production (including $5.5 million on mine development, $3.5m on the second phase of tailings storage and solid waste landfill and $0.4m contingency).
Strategy
The mine plan and design remains based on ore extraction by underground mining methods only, with the processing of the free-milling ore taking place in a conventional carbon-in-leach process plant. However, a study has now been completed which indicates that it is technically feasible to open pit the top portion of the orebody. Work will continue in this area, as extraction of the upper portion of the orebody should increase the mineable ore reserves and improve the safety and economics of the project.
Proposed Scheme
- Throughput: 175,000 tonnes pa mine/plant
- Mine: Underground sub-level shrinkage (openface/ore shrinkage)
- Plant: Carbon-In-Leach (CIL)
- Production: c. 84,000 oz of gold and 160,000 oz of silver pa
- Life: c. 7 years