Goldbridges Gbl Res Clarification of All In Sustaining Cost estimate -Sekisovskoye underground mine development

 
TIDMGBGR 
 
 

GoldBridges Global Resources plc (LSE: GBGR) would like to clarify the basis of projected cash costs as reported in the RNS released dated 29 November 2016.

The total cash cost as reported in the RNS, should be regarded as being the All-in Sustaining Cost, ('AISC') of the Company.

The Company's plan is to move to an AISC cost of approximately US$900 for the year 2018, not 2019 as previously reported. By the end of 2018 the production run rate is expected to be sufficient to reach approximately 100,000 Oz. of gold production per annum. Once the production level of 100,000 Oz is achieved on an annual basis, the AISC is planned to decrease to approximately US$620 for the year 2019.

The anticipated cash costs and production levels are based on the Company's internal projections and are dependent, in particular, on the Company obtaining sufficient funding on a timely basis to complete the mine expansion.

For further information please contact:

GoldBridges Global Resources Plc

Rajinder Basra [phone]

Information on the Company

GoldBridges is a gold mining, exploration and development group based in Kazakhstan. Whilst the Company was initially established to exclusively develop and operate the Sekisovskoye gold and silver mine in the East Kazakhstan Region, it is now actively targeting additional gold mining opportunities in Kazakhstan. This includes the adjacent prospective Karasuyskoye Ore Fields, on which GoldBridges was recently awarded the tender to perform further confirmatory testing in order to gain the sub-soil user licence.

The Company holds a 100 per cent shareholding in DTOO Gornorudnoe Predpriatie Sekisovskoye ("DGPS") which holds a subsoil use contract in relation to the Sekisovskoye deposit, covering a total area of 0.855km². The subsoil use contract for Sekisovskoye is valid until 2020 and the Company currently intends to seek to extend the contract in accordance with its terms. The Company also holds a 100 per cent shareholding in Altyn MM LLP (formerly Altai Ken-Bayitu LLP), which owns and operates the processing plant at the Sekisovskoye deposit. The Sekisovskoye deposit is located at the village of Sekisovskoye, approximately 40km north of the town of Ust-Kamenogorsk, the capital city of the East Kazakhstan Region. The current operation is focused on mining the near-vertical deposits which extend to the surface below the open pits which have been previously mined.

The Company intends that the Sekisovskoye deposit shall become a selective-mining underground operation. As at 31 May 2014, the Company's proven and probable reserves consisted of 2.3Moz of gold and 3.0Moz of silver and the Company's measured, indicated and inferred resources consisted of 5.1Moz of gold and 3.5Moz of silver, in each case as classified in accordance with JORC.

In the year ended 31 December 2015, the Company's consolidated revenue was US$24.05 million and its net assets US$38.4 million.

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(END) Dow Jones Newswires

December 08, 2016 10:15 ET (15:15 GMT)