(MENAFN- ProactiveInvestors - Australia) Kentor Gold (ASX: KGL) has confirmed the environmental impact of its Andash Gold Copper Project in the Kyrgyz Republic â€" potentially one of the lowest cost gold mines in the world â€" is well within local and international regulations and standards.
The review presented to the Kyrgyz Interdepartmental Commission on Andash and the general public by International environmental auditing company EMAS had found the development of Andash was practical in terms of its impact on the environment and that the impact of its current design was well within prescribed limits.
EMAS is recognised as one of the leading environmental auditing organisation in the Russian Federation and is well qualified for the Andash environmental review due to the similarities in environmental legislation in the two countries and the common language they share.
"We are pleased to receive a full endorsement of our project from such a highly regarded international organisation," managing director Simon Milroy said.
"We take note of their recommendations, and we are now starting on the process of communicating the findings to the local community in a coordinated manner in conjunction with local and government officials."
The company plans to adopt all of the recommendations made in the EMAS report.
Findings
The EMAS report notes the need to renew a number of studies which have been suspended while site access is on hold. They recommended completion of further hydro-geological studies to assess the volumes of water intakes from the Karakol river and potable water wells, and further analysis of noise impact.
Further attention should also be paid to the issue of household waste disposal and preservation of soil put aside for recultivation on completion of the project activities.
The report identified dust and noise as the main factors impacting on the local environment.
However, it noted that dust will be generated only within the boundaries of the land allotment which has already been granted and dust levels in the neighbouring village will be an order of magnitude less than maximum allowable levels.
Kentor will instigate a dust mitigation strategy of regular use of water trucks in the mine and along the haul roads to minimise dust within the environment.
Noise impact will also be restricted to the working zone of the development. The specialists concluded that there will be no water pollution due to there being no discharge to the environment.
It was also noted that production facilities will be located on marginal soils so that loss of agricultural potential will be minimal, and that there will be a system of health and safety measures at the enterprise to protect the workers.
The report concluded the design of the Andash project is in full compliance with all applicable legislation and Kyrgyz and international standards.
Andash
Andash is currently planned as a high grade, low cost mine with a conventional open pit and flotation plant, with a three stage crush, grind, float process.
The project is development ready, awaiting site access and targeting 2013 for production at an average annual rate of 70,000 gold ounces and 7,400 tonnes copper for an initial six years, with high potential for expansion.
Andash has a JORC Ore Reserve of 539,730 gold ounces and 63,486 tonnes copper, and a Resource of 19.2 million tonnes at 1.1g/t gold and 0.4% copper for 679,023 gold ounces and 77,300 tonnes copper.
The project has a cash cost of US$29/oz gold (after copper credits and royalty). Capital cost is estimated at US$96 million, with a Base Case NPV of US$130 million (US$1,000/oz gold and US$2.75/lb copper).
The initial mine life is six years, with resource/reserve expansion likely to significantly increase mine life.
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