Central Asia Metals (CAML LN) 228 pence, Mkt Cap �403.9m – 2018 operations results and 2019 guidance
• Central Asia Metals reports that it produced 14,049t of copper from its Kounrad operation - earlier this year the company issued production guidance of 13-14,000 tonnes. Copper production guidance for 2019 is 12,500-13,500 tonnes.
• The company also met its guidance for zinc production (22,532 tonnes in concentrate) and lead (29,388 tonnes in concentrate) for the Sasa mine. Guidance for 2019 is for 22-24,000t of zinc in concentrate and 28-30,000t of lead in concentrate from underground ore production in the range 800-825,000t.
• The company also reports that “During H2 2018, CAML commenced a 'Life of Mine' study at Sasa. This work programme will entail an in-depth review of each aspect of the Sasa operation and is expected to be completed throughout the course of 2019”.
• This programme included diamond drilling at the existing operating site at Svinja Reka where there is an existing, JORC compliant, inferred resource of 2.7mt at an average grade of 3.2% lead and 2.1% zinc, and at Golema Reka “which was mined between 1981 and 2010”.
• A total of more than 3,000m of diamond drilling below the 830m level at Svinja Reka has “confirmed extensions to mineralisation down to and beneath the 750m level” over a 150m strike length. “CAML is encouraged that the grades identified in the area below the 830 metre level appear to be higher than the current inferred resource demonstrates” and results presented in today’s announcement include individual intersection of over 9% lead and up to 10% zinc. It appears that these drilling results have yet to be reflected in the mineral resource estimates.
• Drilling at Golema Reka, where there is an inferred, JORC compliant, resource estimate of 7.4mt at an average grade of 3.7% lead and 1.5% zinc also comprised over 3000m “over a 350m strike length that demonstrates an extension to mineralisation beneath the 700 metre level. Golema Reka is accessible from the current mine infrastructure.” Individual drill intersections reported today include intersection of up to 15m width and grades in the range of 1.7-10.4% lead and 0.2-4.2% zinc.
Conclusion: Central Asia Metals’ 2019 production guidance indicates that existing levels of lead and zinc production are likely to be maintained and that copper output from Kounrad may decline slightly. Drilling at Sasa has produced results which may lead to mineral resource updates, as part of a continuing life of mine study, later this year.