TIDMALTN
Altyn Plc("Altyn" or the "Company")
CPR Results (Sekisovskoye)
Altyn is pleased to announce the results of the latest
Independent Competent Person's Report ("CPR") for the Sekisovskoye
Mine, which includes an important upgrade to its Mineral Resources
and Ore Reserves estimates.
Highlights
The CPR includes JORC Mineral Resources and Ore Reserves
estimates totaling:
-- Proved Ore Reserves of 3.47 million ounces ("Moz") - 29.87 million tonnes ("Mt") at an average gold grade of 3.61 grams / tonne ("g/t");
-- Probable Ore Reserves of 0.33Moz - 3.58Mt at an average gold grade of 2.91g/t;
-- Measured Mineral Resources of 3.51Moz - 29.03Mt at an average gold grade of 3.76g/t;
-- Indicated Mineral Resource of 0.34Moz - 3.48Mt at an average gold grade of 3.03g/t;
-- Inferred Mineral Resources of 2.83Moz - 37.15Mt at an average gold grade of 2.37g/t; and
-- An Exploration Target of 1.74Moz - 22.79Mt at an average gold grade of 2.37g/t.
Highlights of the updated Sekisovskoye Mine Mineral Resource and
Ore Reserve estimates are shown in the table below.
2014 CPR Press Release1 CPR 20192
Proved Ore Reserves n/a 3.47Moz at 3.61g/t
Probable Ore reserves 2.26Moz at 4.09g/t 0.33Moz 2.91g/t
Measured Resources n/a 3.51Moz at 3.76g/t
Indicated Resources 2.67Moz at 5.32g/t 0.34Moz at 3.03g/t
Inferred Resources 2.47Moz at 4.21g/t 2.83Moz at 2.37g/t
NPV (forecast) USD238.6m USD 415.4m
1 Gold cut-off grade in 2014 was 3g/t in Indicated and 2g/t.
Gold price in 2014 was USD1,166/oz2 Gold cut-off grade in 2019 is
1.5g/t. and Gold price in 2019 is USD1,321/oz
The updated Mineral Resource and Ore Reserve estimates are based
on additional exploration drilling conducted between 2014 and 31
May 2019 and includes the plan to ramp up the underground
production. There have been important changes to the regulatory
requirements in Kazakhstan resulting in a detailed discussion of
these matters in the report. EY has compiled the CPR in accordance
with the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves, 2012 edition ("the JORC Code").
At all stages, the technical teams ensured, that all technical
parameters and economic assumptions were consistent with the
requirements of JORC Table 1.
Altyn's independent consultant, Ernst and Young Advisory
Services (Pty) Ltd ("EY"), has prepared a CPR for the 100% owned
Sekisovskoye Mine located in Kazakhstan. The CPR includes an
updated Mineral Resource and Ore Reserve estimate that is higher
than the CPR completed in 2014, entitled "Independent Competent
Persons' Report on the Sekisovskoye Gold Project" prepared for
Altyn Plc (formerly Goldbridges Global Resources Plc) as at 31 May
2014 by Venmyn Deloitte (Pty) Ltd.
EY has reviewed the data used in the orebody modelling and
estimation procedures and the approach is considered reasonable for
the style of mineralisation and considers the items and guidelines
outlined in the JORC Code.
The CPR summarises the technical and economic aspects of the
Sekisovskoye Mine, in order to identify factors that would
influence the future performance of the operation. The CPR has been
compiled in order to incorporate the currently available and
material information that would enable potential investors to make
an informed and reasoned judgement regarding the technical and
economic merits of the underground operation.
Mineral Resources and Ore ReservesMineral Resources have been
estimated based on the level of geoscientific confidence in the
data available and primarily based on drilling density. Due to the
nature of the deposit, drilling is denser near surface and becomes
less dense with depth. Based on these factors, Measured and
Indicated Resources are estimated from the current working depth of
+250masl to a depth of -400masl using a cut-off grade of 1.5g/t.
Inferred Mineral Resources have been estimated from -400masl to
-800masl using a cut-off grade of 1.5g/t.
Mineral Resource estimate for the Sekisovskoye Mine as at 31 May
2019
Resource Level Tonnage (Mt) Cut-off Grade Average Gold Contained Gold Average Silver Contained
Classification (Gold g/t) Grade (Moz) Grade Silver
(g/t) (g/t) (Moz)
Measured +250masl to 29.03 1.50 3.76 3.51 6.20 5.79
-400masl
Indicated 3.48 1.50 3.03 0.34 5.08 0.56
Measured 32.51 1.50 3.68 3.85 6.08 6.35
and
Indicated
Resources
Inferred -400masl to 37.15 1.50 2.37 2.83 3.99 4.77
-800masl
Inferred 37.15 1.50 2.37 2.83 3.99 4.77
Resources
TOTAL 69.66 1.50 2.98 6.68 4.96 11.12
MINERAL
RESOURCE
Mineral Resources are reported inclusive of Ore Reserves and as
in-situ estimates.All figures are rounded to reflect the accuracy
of estimates, apparent computational errors due to rounding.Mineral
Resources are reported on a 100% basis.No geological losses
applied.Density = 2.83.
Ore Reserves have been estimated per level to a depth of
-400masl, as this is the area of the deposit for which Measured and
Indicated Mineral Resources have been estimated. All the Mineral
Resource blocks that are above the cut-off grade of 1.5g/t were
included in the Ore Reserve, as no selective mining has been
incorporated for the Ore Reserves estimate and Life of Mine ("LoM")
plan.
Ore Reserve estimate for the Sekisovskoye Mine as at 31 May
2019
JORC Reserve Tonnage Gold grade Contained gold Silver Grade Contained
Category (Mt) (g/t) (Moz) (g/t) Silver
(Moz)
Proved 29.87 3.61 3.47 5.88 5.65
Probable 3.58 2.91 0.33 4.81 0.55
Total Ore 33.45 3.53 3.80 5.78 6.20
Reserves
Apparent computational errors are due to rounding.Ore Reserves
are reported as RoM tonnes.Mineral Resources are reported inclusive
of Ore Reserves.No Inferred Mineral Resources have been converted
to Ore Reserves.
The key modifying factors used by Altyn for estimation of the
Ore Reserves are as follows: -
-- long term prices for gold and silver of USD1,280/oz and USD17/oz, respectively;
-- a processing recovery of 83% for gold and 73% for silver;
-- an average underground mining cost of USD23/RoMt;
-- 5% dilution factor;
-- 2% mining loss; and
-- 100% mining extraction factor.
Mineral Resources and Ore Reserves have been estimated and
signed off by Mr V. Redozubov-Gorskiy, the chief geologist at the
Sekisovskoye Mine. As per the Kazakhstan State Commission on
Mineral Reserves system for classification of reserves ("the GKZ
system"), the geologist is responsible for the estimation of
reserves. Mr V. Redozubov-Gorskiy relies on a team of technical and
mining experts to provide the various inputs for Mineral Resource
and Ore Reserve estimation. Mr V. Redozubov-Gorskiy is a Competent
Person who is a Member of the Australasian Institute of Mining and
Metallurgy.
Exploration TargetThe Exploration Target was estimated using the
same estimation methodology as the Mineral Resources; however, they
are estimated for the depth extension of the orebody. The
Exploration Target is estimated for the depths -800masl to
-1,500masl, an extension of 700m below the deepest drill hole
intersection and considered to be the depth extension of the
orebody based on the results of a geophysical survey.
The potential quantity and grade of the Exploration Target is
conceptual in nature. There has been insufficient exploration
results to estimate a Mineral Resource and it is uncertain whether
further exploration will allow for portions of the Exploration
Target to be converted to a Mineral Resource.
Exploration Target estimate for the Sekisovskoye Mine as at 31
May 2019
Resource Classification Level Tonnage (Mt) Cut-off Grade (Gold g/t) Average Gold Grade (g/t) Average Silver Grade (g/t) Contained Silver (Moz)
Contained Gold
(Moz)
Exploration -800masl to 22.79 1.50 2.37 1.74
Target -1,500masl No estimate
Total Exploration Target 22.79 1.50 2.37 1.74
The Exploration Target are reported exclusive of Mineral
Resources and Ore Reserves.All figures are rounded to reflect the
accuracy of estimates, apparent computational errors due to
rounding.Exploration Targets are reported on a 100% basis.No
geological losses applied.Density = 2.83.
The Exploration Target has not been reported as a range due to
the conversion from estimation based on the GKZ requirements, which
does not require a range to be reported. Creating an artificial
range around the results of the estimation could be misleading.
Mineral Asset ValuationThe results of the mineral asset
valuation are presented in the table below. EY estimated the
preferred value for Sekisovskoye Mine as the average value between
the Income-based approach and the Market-based approach for both
Scenario 1 and 2, resulting in a preferred value of approximately
USD400m. The preferred valuation range for Sekisovskoye Mine is
estimated as USD415m under Scenario 1 and USD383m under Scenario
2.
Mineral Asset Valuation Summary of Sekisovskoye Mine, 31 May
2019
Scenario Units Income-Based Market-Based Preferred Value
Approach - Mean Approach - Mean
value* value*
Scenario 1: Forecast USDm 493.35 337.49 415.42
Scenario 2: Spot USDm 427.70 337.49 382.59
Source: EY analysis* Mean values are derived from high and low
value ranges for the respective valuation approaches.Notes: Real
discount rate of 12.83%.Scenario 1: Consensus analyst long term
gold price of USD1,321/oz.Scenario 2: Spot gold price of
USD1,300/oz at valuation date.
Altyn CEO Aidar Assaubayev commented:
"The report on the Sekisovskoye deposit updates and confirms the
world class resources of Altyn. While the company is well
positioned to capitalize on this base by growing production, it is
still aiming at increasing its resources base further."
Competent Persons StatementThe information in this statement
relates to Exploration Targets, Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Mr V.
Redozubov-Gorskiy and other technical experts at the Sekisovskoye
Mine. Mr V. Redozubov-Gorskiy, the chief geologist for the
Sekisovskoye Mine, is responsible for estimation of Mineral
Resources and Ore Reserves. Mr V. Redozubov-Gorskiy has more than
20 years' relevant experience in the assessment of the types of
gold exploration and mining properties discussed in this statement.
Mr V. Redozubov-Gorskiy is a Competent Person who is a Member of
the Australasian Institute of Mining and Metallurgy.
Mr A. Clay, Principal Consultant employed by EY, is the
Competent Person that supervised preparation of the CPR. Mr A. Clay
has more than 40 years' relevant experience in the evaluation of
the types of gold exploration and mining properties discussed in
this statement. Mr A. Clay is a Competent Person who is a Fellow of
the Australasian Institute of Mining and Metallurgy. Mr Clay is
also the Competent Valuator. Mr A. Clay is independent of Altyn
does not have any material interest in either Altyn or in any of
the properties described herein.
Mr V. Redozubov-Gorskiy and Mr A. Clay consent to the inclusion
in this statement of this information in the form and context in
which it appears.
Cautionary Statement on Forward Looking InformationEY have
relied on and challenged the forecasts as provided by Altyn
management. The forecasts for Altyn relate to future events and are
based on assumptions that may or may not remain valid for the whole
of the forecast period. Consequently, such information cannot be
relied upon to the same extent as that derived from audited
financial statements for completed accounting periods. EY express
no opinion as to how closely the actual future results for the
business will correspond to those projected. Therefore, conclusions
arrived at in this document should be interpreted in this light. EY
also do not express an opinion on the commercial merits of any
aspects of the business.
EY have reviewed the explanations provided by Altyn management
during the compilation of the CPR. EY have assessed such comments
and explanations for reasonableness within the context of our
knowledge and understanding of the business and the industry within
which it operates.
EY's CPR contains forward-looking statements. These
forward-looking statements are based upon the technical and
economic parameters identified by Altyn and EY. The statements are
subject to a number of known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially
from those forward-looking statements identified by Altyn and EY.
Factors that could cause such differences include changes in the
global gold and silver markets, equity markets, costs and supply of
materials and regulatory changes. Although Altyn and EY considers
the expectations reflected in the forward-looking statements to be
reasonable EY will not be held liable for any deviations from these
statements.
Further Information:
For further information please contact:
Altyn PlcRajinder Basra+44 (0) 207 932 2456
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Information on the CompanyAltyn Plc (LSE:ALTN) is an exploration
and development company, which is listed on the standard segment of
the London Stock Exchange. To read more about Altyn Plc please
visit our website www.altyn.uk
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(END) Dow Jones Newswires
October 08, 2019 02:00 ET (06:00 GMT)
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