Altyn notes rise in H2 2016 gold output as it increases production capacity

Gold-mining development company Altyn said second-half 2016 gold production was 7276oz, against 3694oz in the first half, with this rise a direct result of increasing production from the underground mine.

It sold a total of 12,602 ounces (oz) of gold in 2016, and that during the year it produced 10,970 oz of the yellow metal, from 15,534 oz. Silver output was 16,520 oz, from 26,608 oz.

Altyn said it was continuing to increase its productive capacity and recently took delivery of an LHD (load-haul-dumper), which were used to fill the underground trucks with ore.

"This together with the existing two LHDs and the existing fleet of 30-ton trucks significantly increases the productive capacity. It is expected to be operational in early April 2017," the company added.

It said ongoing capital expenditure in 2017 was likely to be in the region of $15m, rising to US$20m in 2018 after adjusting for deferrals from 2016.

Altyn said the increase in productive capacity was expected to result in a run rate of 40-45koz of gold production during 2017.

In the prospective area Karasuyskoye, several promising areas for detailed geological exploration in 2017 had been identified.

"These include a plot with a high silver content (up to 980 g/t) and a structure containing industrial gold concentrations (from 0.73 to 6.38 g/t)," the company said.

Chief executive Aidar Assaubayev said the strong rate of production growth in the second half of 2016 had been sustained in 2017, and would be further enhanced going forward as new capital equipment was acquired.

"We are confident in meeting the targeted forecast gold production figures going forward of 100,000 oz in the future, with a forecast cash cost of $510.

"The Sekisovskoye mine project together with the added benefit of the development Karasuyskoye ore field, the exploration results of which are looking very encouraging are expected to generate substantial returns to the shareholders."

At 11:51 GMT, shares in Altyn were unmoved at 1.6p each.