Varvarinskoye, Kazakhstan
Overview
Located 130km southwest of Kostanai in north-western Kazakhstan, Orsu’s 100% owned Varvarinskoye gold-copper mine is currently in the development and ramp-up phase and produces for sale gold doré and copper-gold concentrate.
The mine commenced production of gold doré in December 2007 and copper-gold concentrate in March 2008. As of 30 September 2008, Varvarinskoye had produced a total of 847,523 grams (27,231 troy oz) of gold and 2,531 tonnes of copper recovered to concentrate, with total metal production revenue of approximately US$38.6 million.
Subsequent to the formation of the Company in mid June 2008, Orsu’s main focus has been the ramp-up of mining operations at Varvarinskoye. Since processing of Varvarinskoye ores commenced in December 2007, Varvarinskoye’s production plant has seen significant increases in throughput - operational capacity has now reached over 80% of design capacity. The Company is implementing a plan to add a secondary low cost screening and crushing plant at Varvarinskoye which is expected to increase throughput in the leach circuit (up to 120% of design capacity) and flotation grinding circuits (up to 108% of design capacity).
Measured, indicated and inferred mineral resources:
Gold 5.01Moz
Copper 607Mlb
Proven and probable mineral reserves:
Gold 2.2Moz
Copper 254Mlb
At metal prices of US$525/ounce for gold and US$1.30/pound for copper.
The deposit has simple metallurgy, strong economics and potential for expansion. The project is expected to treat 4.2Mt of ore per annum with a current mine life of 15 years. The mining licence area of Varvarinskoye occupies approximately 1,300 hectares. This area is surrounded by approximately 180km2 of exploration licence area. Assay results from diamond drilling completed in the 2007 field season combined with historical data enabled the Company to outline significant additional mineral resources beneath the final pit design.
