Study confirms potential of Unkurtash, says Highland

Highland Gold Mining said a scoping study has confirmed the economic potential of the Unkurtash project in Kyrgyzstan.

The Unkurtash licence area covers three deposits – Unkurtash, Karatube and Sarytube – with previously-published JORC-compliant mineral resources (measured, indicated and inferred) of 3.5 Moz of gold at 1.82 g/t (IMC Montan, 2013).

Highland said the project was situated in an area that already featured operating mines and had access to paved roads, power and water supply.

Highlights of the study, compiled together with consultant SRK, include:

– 18-year life of mine with annual production of ~133k ounces.

– NPV of US$ 200 M at a 10% discount rate, and an IRR of ~19% assuming a long-term gold price of US$ 1,200/oz.

– Estimated average operating costs of $616/oz.

– Mining plan envisioning two open pits of similar size.

– Processing plant utilising gravity concentration and gravity tailings CIL with an annual throughput of 4 million tonnes and recoveries of over 80%.

– Capital expenditures for project development pegged at US$ 322 million.

Highland Gold acquired 100% of Unkurtash from Barrick Gold in 2006 and has since spent US$38m on extensive exploration of the site.

Local-standard (GKZ) reserve estimates and a local-format pre-feasibility study have already been submitted to and approved by Kyrgyz regulators.

The company said it was considering various alternatives for proceeding with the project, including partnering with another strategic investor to co-develop Unkurtash.

At 8:14am: (LON:HGM) Highland Gold Mining Ltd share price was -0.37p at 181.88p

Story provided by


Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.