This deposit has been a key feeder for the giant Balkhash smelter, responsible for 65% of Kazakhstan’s copper production. Dumps of over 300 million tons accumulated from 40 years of operation.
Resource Analysis
Wardell Armstrong (MRI, PCR) 2020
During--------- , the Company undertook exploration:
Reverse circulation (RC) drilling – 47 holes.
Surface Pitting – 141.
Toe Pitting – 26.
More than 900 ore samples.
SX-EW plant Results
The pilot plant commissioned in autumn 2017 and produced first copper in November 2017.
Following remedial work on the leaching pad and collection system in spring of 2018, the plant has reached a steady-state production with PLS ERE grade of 1.5-1.6 g/L, and average daily production of 200 kg of copper cathode.
Over 36 tons of cathode copper sold on the local market at near LME prices.
1.2 km electric line to the site and 630 kW transformer — completed and connected to the local electric grid.
400 m access road to the site — completed.
1.1 km water pipeline to the site — completed.
Building for the SX-EW pilot plant — completed, insulation and ventilation installed.
1 km of piping for the heap irrigation — purchased, connected and laid out.
Ponds and collection trenches — completed and lined with geomembrane.
SX-EW Business Model
Planned annual production: 10,000 tons of LME grade "A" cathode copper.
A 23-year copper production contract with the government of Kazakhstan signed in May 2017.
Key production cost drivers:
Chemicals & Reagents and Power (variable) — favorable geographic location helps keep these costs low.
Labor and Production Overheads (fixed).
Mineral Extraction Tax @ 5.7% on value of copper in PLS.
Distribution & Selling — mix of fixed and variable driven by local Infrastructure and T&C of the off-take contract.
Currency: USD
Target Price / Revenue: TBD
Target Price / EBITDA: TBD
