Manas Resources boosts gold oxide resource 40% to 460,000 ounces at Shambesai

Manas Resources (ASX: MSR) continues to unlock the vast potential of the Shambesai gold project, which is strategically located in the supportive mining district of the south of the Kyrgyz Republic in Central Asia.

The significance of the 40% boost to 460,000 ounces (Indicated and Inferred) of the oxide is the ease of gold extraction at a low cost, which will provide early cash flows for Manas when the company starts gold production - which is forecast to start at the end of 2012.

The high grade oxide component from the surface is 2.7 million tonnes at 3.6 grams per tonne (g/t) gold for 300,000 ounces.

The latest gold boost is not just for the oxide, with the Shambesai resource upgraded to 11.6 million tonnes at 2.1g/t for 766,000 ounces, with 60% classified as oxides.

Another major plus for Manas is when the Shambesai resource is combined with the nearby Obdilla resource, the company then has a global Indicated and Inferred Resource of 1.25 million ounces within a 4 kilometre radius.

The total discovery costs for the Shambesai resource are very low at just US$9 per ounce, with the likelihood of further gold discoveries due to the mineralised zones at the project remaining open along strike to the west and at depth.

Stephen Ross, managing director, commented on the positive news, “We are extremely pleased with the results of the resource upgrade, especially the significant increase in the high-value oxide resource.

"We believe these extra ounces have the potential to enhance the already robust project economics of the Shambesai resource and will therefore increase the value substantially for the Shambesai shallow oxides project alone.”

Manas is the largest and most active gold explorer in the Kyrgyz Republic with projects located in the south of the country - and holds an extensive 4,400 square kilometre land holding.


Feasibility Study on track for December quarter delivery

Manas is currently completing a preliminary mining evaluation and pit optimisation study incorporating the new resource model, updated capital and operating costs, and a realistic medium-term gold price of US$1,500 per ounce.

Importantly for Manas - the Feasibility Study remains on track for delivery to the market during the December quarter.

The company can then move forward to the granting of mining licenses and an early move into the implementation phase at Shambesai.


Gold recoveries of plus 85%

Recent vat leach and heap leach test-work at an independent laboratory in the Kyrgyz Republic under Manas Resources’ supervision has demonstrated significantly improved gold processing parameters, including higher gold recoveries, quicker leach times and lower cyanide consumption.

A bulk sample of high-grade ore greater than 8.0g/t gold was taken from zones which will be mined first at Shambesai, and was then tested in columns under conditions designed to replicate the Vat Leach process for extracting gold from the Shambesai oxide ore.

The results indicate recoveries of more than 85% can be achieved in rapid leach cycles of less than 36 hours, with very low cyanide consumption of 0.2 to 0.3 kg/t for minus 12mm crushed and agglomerated ore in vats at high solution circulation rates.

The outcome is that the test work results confirm the suitability of the process route selected for the project, providing a very low capital and operating cost ore treatment route.


Institutional support from Macquarie Bank and Lion Group

Manas boasts some significant institutional players on the share register, adding another vote of confidence to the company's operations.

These include Macquarie Bank (ASX: MQG) and Lion Group which both hold 15 million shares, and Perseus Mining with 42.3 million.

Manas only has around 177 million shares on issue, with big chunks of the scrip tied up by institutional investment.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20036/manas-resources-boosts-gold-oxide-resource-40-to-460000-ounces-at-shambesai-20036.html