TAMAYA RESOURCES ANNOUNCES CONSERVATION OF GOD RECOVERY PROJECT IN MEGHRI (ARMENIA)
ArmInfo
2008-09-22 16:27:00
ArmInfo. Board of Directors of Australian Tamaya Resources Company, the
holder of an 82.6% stake in Iberian Resources, announced conservation
of gold recovery projects in Meghri (Armenia), says Tamaya Resources
Limited Directors’ Review for the first half of 2008.
The report says that the mineralisation at Lichkvaz project in
Armenia has proven to be more complex and difficult than anticipated
during the acquisition process. On-going metallurgical test work on
the Lichkvaz mineralisation aimed at trying to find a low capital
production route to produce a saleable product has not been successful
to date. While the resource grades at Lichkvaz have the pontetial to
diliver an economically viable operation at some stage in the future,
the Company has concluded that a larger resource must be identified in
order to justify the increased capital costs associated with treating
the deposit’s refractory like material. Drilling at Lichkvaz will only
recommence once Iberian is in a position to fund the expenditure from
its own sources.
The Lichkvaz project formed the basis of the Company’s investment
in Iberian. As it has not proved to be what was expected, and it is
not ready for development in the foresseable future as a standalone
business, the directors of Tamaya have resolved to cease further
expenditure in it and to write down its carrying value. The project
was placed on case and maintenance subsequent to 30 June 2008. The
company acquired an 86.2% shareholding in Iberian Resources Limited
(Iberian) in May 2007 in an off-market takeover offer satisfied by the
issue of Tamaya shares to Iberian shareholders in a transaction that
valued the acquisition cost at $112 million. In the meanwhile, EBIT
before non-operating and non- recurring items for the first half of
2008 totaled 4.5 million Australian dollars as against 9.8 million in
2007. Profit after tax (Loss) totaled 141.2 million Australian dollars.
To recall, Iberian Resources has exploited Terterasar gold deposit
in Meghri (3 tons of gold reserves) since 1995 and carried out test
exploitation of Lichkvaz deposit that was recognized profitable given
the nearby mines.
After amalgamation, Tamaya Resource announced construction of a new
processing plant in Meghri and increase of ore recovery to 10 kg of
gold daily in 2009 instead of month recovered 10kg. The investment
program cost $65 million.
By ArmInfo’ data, Tamaya Resources failed to raise enough funds to
implement the investment program which became the reason for stopping
activity in Armenia. The company has already cut over 400 jobs and
left just 30-40 geologists in Meghri. The Company plans to sell the
assets in Armenia.
From: Emil Lazarian | Ararat NewsPress
