Manas Resources completes DFS for Shambesai Gold Project, Snowden Group reviewing

Manas Resources (ASX: MSR) is starting to tick off the milestones at the Shambesai Gold Project in the Kyrgyz Republic, Central Asia, with a Definitive Feasibility Study having now been completed.

The study is in the process of being reviewed by Snowden Group in preparation for board approval, and is examining the stage one gold‐leach project at Shambesai, with the final documentation to provide the basis for the project detailed design, which in turn is a key element in the mining licence and permitting approvals process.

Importantly the detailed design for the project has commenced with the appointment of China based Yantai Design Institute to complete the process plant design and equipment selection.

Another plus for operations within the county is that with the new Kyrgyz Republic government appointed, mining reform has commenced with the stated objective of accelerating the growth of the mining industry in 2012 and beyond, which is a major benefit for Manas.

Negotiations are also underway for the design of the mine and infrastructure sections of the project, with discussions having started for the supply of the camp, crushing and adsorption/elution/gold room sections of the mine development.


Pit optimisation review provides boost

Towards the end of 2011, Manas received a major boost to the economics of the Shambesai with a pit optimisation review upgrading the project's financials.

The study demonstrates the potential for net cash flows of up to US$190 million by producing 40,000 gold ounces for an initial five years - with the metrics based on a conservative US$1500 per ounce gold price.


Manas gold oxide resource

Adding to the potential of Shambesai, 2011 also delivered a boost in the gold oxide resource.

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.


Gold recoveries of plus 85%

Vat leach and heap leach test-work at an independent laboratory in the Kyrgyz Republic under the supervision of Manas 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.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24503/manas-resources-completes-dfs-for-shambesai-gold-project-snowden-group-reviewing-24503.html