Shambesai Strategy
The aim of the current drilling program is to increase gold resources and provide additional mineable oxide material for the Shambesai Gold Project. Drilling is currently occurring at areas across Manas’ portfolio, including Shambesai, Pum, Obdilla and at Ulugtau on the Djilginsai project.
An expanded program of more than 12,000m of resource and development drilling has been taking place at Shambesai with the aim of:
- Rapidly upgrading all resources in the current pit optimisation;
- Testing areas for further shallow oxide at the edge of the existing resource;
- Testing the fault zone between the deep and main Shambesai zones; and
- Defining the zone at the western boundary of the current pit with the goal of substantially increasing the resource and pit extent.
Figure 1 – Shambesai Drill Hole Plan
The first phase of the Shambesai 2011 drill program completed infill and extension drilling with a focus on shallow oxide zones, as well as the fault zone between the deep and main Shambesai Zones.
We are currently completing a preliminary mining evaluation and pit optimisation study incorporating the new resource model, updated capital and operating costs, and a realistic medium-term gold price of US$1,500 per ounce.
Figure 2 – Shambesai Mineral Resource oblique top view towards NE showing western target areas
A detailed Scoping Study, carried out by CSA Global in November 2010, estimates a leach operation at Shambesai will recover 180,000 ounces of gold over six years at a cost of US$250 per ounce of gold, placing the project into the lowest quartile of cash costs for gold producers worldwide. Production of the first 100,000 ounces, at an average head grade of 5.7 g/t gold, in the first three years will just cost just US$180 per ounce.
The study shows that a technically simple, low-cost vat leach and heap leach operation for the high grade oxide (greater than 2 g/t gold), low grade oxide (less than 2 g/t gold) and sulphide ore has the potential to generate US$96M of undiscounted cash flow before tax, and after capital and operating costs, over the six-year life of mine.
A full feasibility study, technical design and government consultation for mining permits has commenced with major shareholder and West African gold developer Perseus Mining Limited providing technical assistance. The study remains on track for finalisation in Quarter 1 2012.