Central Asia Metals PLC Q3 2018 Operations Update (9063C)

TIDMCAML

RNS Number : 9063C

Central Asia Metals PLC

04 October 2018

4 October 2018

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Q3 2018 Operations Update

Central Asia Metals plc (AIM: CAML) today provides a Q3 2018 operations update for the Kounrad dump leach, solvent extraction and electro-winning ('SX-EW') copper recovery plant in Kazakhstan ('Kounrad') and the Sasa zinc-lead mine in Macedonia ('Sasa').

Highlights

   -      Kounrad 

o Q3 2018 copper production, 3,938 tonnes

   -      Sasa 

o Q3 2018 zinc in concentrate production, 5,742 tonnes

o Q3 2018 lead in concentrate production, 7,602 tonnes

   -      On track to meet 2018 production guidance 

o Copper 13,000 to 14,000 tonnes

o Zinc in concentrate 21,000 to 23,000 tonnes

o Lead in concentrate 28,000 to 30,000 tonnes

   -      Shuak 

o 2018 exploration programme approaching completion

CAML production summary

 
 Metal production (tonnes)    Q3 2018   9m 2018   9m 2017 
 Copper                         3,938    10,686    10,869 
                             --------  --------  -------- 
 Zinc                           5,742    16,762    16,237 
                             --------  --------  -------- 
 Lead                           7,602    21,988    22,444 
                             --------  --------  -------- 
 

*9m 2017 zinc and lead production pre-date CAML ownership

Nigel Robinson, Chief Executive Officer, commented:

"We have experienced a good quarter at both of our operations, with copper cathode output at Kounrad up by 2.5% when compared to Q3 2017, and improved zinc recoveries at Sasa. Our production figures confirm that we are on track to achieve 2018 guidance for all three of our metal products."

Kounrad

Kounrad Q3 2018 copper production of 3,938 tonnes brings output for the first nine months of 2018 to 10,686 tonnes. Total Kounrad copper production since operations commenced in 2012 is now 79,111 tonnes.

The total amount of copper recovered from the Western Dumps in the year to 30 September 2018 is 6,950 tonnes, equating to approximately 65% of the 10,686 tonnes plated.

Copper sales during Q3 2018 were 3,626 tonnes, bringing the total for the first nine months of the year to 9,670 tonnes.

Sasa

In Q3 2018, mined and processed ore were 206,406 tonnes and 206,014 tonnes respectively, bringing the total for the first nine months of 2018 to 597,338 tonnes of ore mined and 599,619 tonnes of ore processed. The average head grades for the Q3 2018 period were 3.25% zinc and 3.92% lead, and for the year to date were on average 3.31% and 3.91% respectively. Q3 metallurgical recoveries were 85.7% for zinc and 94.0% for lead. Zinc recoveries have increased during the period as the performance of the new stirred media detritor (SMD) mill that was installed in Q2 2018 has stabilised. Year to date recoveries for zinc and lead average at 84.5% and 93.7% respectively.

Sasa produces a zinc concentrate and a separate lead concentrate that contains silver. In Q3 2018, 11,658 tonnes of concentrate containing 49.3% zinc and 10,455 tonnes of concentrate containing 72.7% lead were produced. Total year to date production was 34,282 tonnes of zinc concentrate at an average grade of 48.9% and 30,167 tonnes of lead concentrate at an average grade of 72.9%.

Sasa typically receives from smelters approximately 84% of the value of its zinc in concentrate and approximately 95% of the value of its lead in concentrate. Accordingly, Q3 2018 payable production of zinc was 4,810 tonnes and of lead was 7,222 tonnes, bringing total payable production for the first nine months of 2018 to 14,020 tonnes of zinc and 20,888 tonnes of lead. Payable base metal in concentrate sales for the nine month period were 13,961 tonnes of zinc and 20,882 tonnes of lead.

During the first nine months of 2018, Sasa sold 278,103 ounces of payable silver. Due to an existing streaming agreement with Osisko Gold Royalties, CAML's silver production has been pre-sold.

 
  Units                                   Q3 2018   Q2 2018   Q1 2018   9m 2018   9m 2017* 
 Ore mined                     t          206,406   198,560   192,372   597,338    589,622 
                              ---------  --------  --------  --------  --------  --------- 
 Plant feed                    t          206,014   197,241   196,364   599,619    593,034 
                              ---------  --------  --------  --------  --------  --------- 
 Zinc grade                    %             3.25      3.36      3.32      3.31       3.20 
                              ---------  --------  --------  --------  --------  --------- 
 Zinc recovery                 %             85.7      83.1      84.6      84.5       85.7 
                              ---------  --------  --------  --------  --------  --------- 
 Lead grade                    %             3.92      3.98      3.83      3.91       4.00 
                              ---------  --------  --------  --------  --------  --------- 
 Lead recovery                 %             94.0      93.8      93.3      93.7       94.6 
                              ---------  --------  --------  --------  --------  --------- 
 Zinc concentrate              t (dry)     11,658    11,239    11,385    34,282     32,783 
                              ---------  --------  --------  --------  --------  --------- 
 
        *    Grade             %             49.3      49.0      48.5      48.9       49.5 
                              ---------  --------  --------  --------  --------  --------- 
 
        *    Contained zinc    t            5,742     5,502     5,518    16,762     16,237 
                              ---------  --------  --------  --------  --------  --------- 
 Lead concentrate              t (dry)     10,455    10,125     9,587    30,167     30,596 
                              ---------  --------  --------  --------  --------  --------- 
 
        *    Grade             %             72.7      72.7      73.2      72.9       73.4 
                              ---------  --------  --------  --------  --------  --------- 
 
        *    Contained lead    t            7,602     7,366     7,020    21,988     22,444 
                              ---------  --------  --------  --------  --------  --------- 
 

*9m 2017 Sasa production pre-dates CAML ownership

Shuak

Exploration activities continued during the quarter at Shuak, focussing primarily at the Kyzyl-Sor prospect. A total of 19,467 metres of core hydrotransport drilling has been undertaken and this programme has now concluded.

A 77 kilometre induced polarisation (IP) geophysical programme to identify sulphide mineralisation has been completed throughout the Shuak area.

Diamond drilling commenced in August 2018 and, to the end of Q3 2018, 3,815 metres have been drilled, with the programme expected to finish in October 2018. Representative metallurgical samples have been sent to a certified laboratory in Kazakhstan for analysis.

For further information contact:

 
Central Asia Metals                  Tel: [phone] 
Nick Clarke, Chairman 
Nigel Robinson, CEO 
Gavin Ferrar, CFO 
Louise Wrathall, Investor Relations  [e-mail] 
 
Peel Hunt (Nominated Advisor and     Tel: [phone] 
 Joint Broker) 
Ross Allister 
James Bavister 
David McKeown 
 
Mirabaud Securities (Joint Broker)   Tel: [phone] 
Peter Krens 
 
Blytheweigh (PR Advisors)            Tel: [phone] 
Tim Blythe 
Camilla Horsfall 
Megan Ray 
 

Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns the Kounrad SX-EW copper project in central Kazakhstan and the Sasa zinc-lead mine in Macedonia. The Company also owns 80% of the Shuak copper exploration property in northern Kazakhstan. For further information, please visit www.centralasiametals.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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October 04, 2018 02:00 ET (06:00 GMT)