Orsu announces update on Varvarinskoye and exploration projects
Orsu Metals Corporation (“Orsu”, or the “Company”) (AIM: OSU, TSX: OSU) is pleased to provide a corporate and project update of ongoing work at the Varvarinskoye copper-gold mine, Kazakhstan and the Company’s exploration projects in Kazakhstan and Kyrgyzstan.
VARVARINSKOYE PROJECT UPDATE
The 100% owned Varvarinskoye copper-gold mine is located 130km southwest of Kostanai in Northern Kazakhstan. The mine produces for sale copper-gold concentrate and gold doré. Subsequent to the formation of the Company during mid June 2008, Orsu’s main focus has been the ramp-up of mining operations at Varvarinskoye where capacity has now reached 80%.
The plant has seen significant increases in throughput and operated at 79% of design throughput during August, with over 280,000 tonnes processed. Since commencement of production at Varvarinskoye, the mine has produced 2,384.5 tonnes (5.25Mlb) of copper and 820kg (26,368 oz) gold, including:
• 12,949 tonnes of copper-gold concentrate containing;
• 2,384.5 tonnes (5.25Mlb) of copper and
• 286.9 kg (9,224 ozs) of gold
• 820 kg (26,368 oz) gold, comprising
• 533.3 kg (17,145 ozs) gold in doré and
• concentrate as above
Total production revenue to date is approximately US$35 million.
Low Cost Project Upgrade
The Company is implementing a plan to add a secondary low cost screening and crushing plant at Varvarinskoye which is expected to significantly increase throughput in the leach and flotation grinding circuits.
Orway Mineral Consultants Pty Ltd (Australia) (“Orway”) has been working with Varvarinskoye engineers since May in making improvements to the grinding circuits. With the assistance of Orway, Orsu has determined that both grinding circuits are highly dependent on the size-distribution of feed ore. Ore originating from the mine lacks in fineness over the middle fraction and the intention is to screen the coarse ore from the jaw-crusher into three sizes and further crush the middle fraction of the screened product.
The additional crushing of the feed to the leach grinding circuit should increase the throughput to 3.6 million tonnes per annum (“mtpa”) or 120% of design capacity. This would represent a 30% increase over what the grinding circuit is currently achieving.
Throughput of the flotation grinding circuit should be increased to 1.3mtpa, or 108% of design capacity. This would represent a 50% increase over what the grinding circuit is currently achieving. Overall capacity of the mill is expected to increase to 4.9mtpa or an increase of 17% over original design capacity. The cost of the proposed upgrade will total approximately US$5 million and is due to be completed during Q2 2009.
Randy Reichert, Orsu’s Chief Operations Officer commented:
“The low cost project upgrade is expected to significantly increase throughput of the grinding circuits and in one step solves the current flotation grinding-circuit problems and provides us with a mill expansion. We do not anticipate having to significantly change the leach or flotation circuits post-grinding to accommodate the increased throughput and the mine is expected to meet production based on the sustaining capital costs already built into the life of mine model. An initial scoping study outlined two options for mill expansion; installation of an additional grinding circuit or modification of existing circuits to achieve capacities of 6mtpa and 5mtpa respectively. Management feels this second option provides an optimum increase. Additionally, this project upgrade is achievable in significantly less time than the two years it would likely take to engineer and construct a second grinding circuit.”
Read More at…..www.OrsuMetals.com
