Kentor Gold has provided an update to the market on the Andash Gold Copper Project located in the Kyrgyz Republic which has the potential to be one of the world’s lowest cost gold mines.

The plan for Andash is to be a high grade low cost operation. 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 6 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 1.1 gram per tonne gold and 0.4% copper for 679,023 gold ounces and 77,300 tonnes copper.

Kentor has provided an update on recent activity towards finalizing local approval for the development of Andash. The international environmental audit has concluded that the Andash Project as designed is environmentally sound.

The Russian environmental auditing organization EMAS was commissioned in mid July to review the Andash project. Kyrgyz Government authorities will now coordinate public presentations of the EMAS findings. The report has been provided to the Interdepartmental Commission on Andash.

Kentor advised the market last month that the Kyrgyz Government established a Commission to resolve the issue of expediency of development of Andash. The new Prime Minister will personally participate in a widely representative meeting that has been called to consider issues adversely affecting the development of the mining industry.

Following the re alignment of parties in coalition in Parliament earlier this month and the formation of a new Government on September 12th 2012 the new Prime Minister Mr Jantoro Satybaldiev undertook to strengthen central power in the Kyrgyz Republic and to address the problems of the mining sector.

Source - Proactive Investors Australia

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