Canada-based Silvercorp Metals has transferred $60 million to the Kyrgyz government under projects to develop the Tulkubash and Kyzyltash areas of the Chaarat deposit.
The company transferred the funds to the National Investment Agency of Kyrgyzstan after its license was extended for 30 years, until 2062.
As agreed by the parties, a joint venture has been established, with Silvercorp holding a 70% stake and Kyrgyzaltyn OJSC holding 30% with no funding obligations. Silvercorp is the operator of the projects.
At the Tulkubash site, the company is carrying out stripping work and constructing a heap leaching facility. The construction budget is $166.3 million.
Sixteen drilling rigs are operating at the Kyzyltash site. The company has presented results from 29 drill holes and is awaiting additional assay results.
In February, the Cabinet of Ministers approved a draft cooperation agreement with Silvercorp Metals Inc. and Chaarat Zaav CJSC on the development of the Tulkubash and Kyzyltash areas of the Chaarat deposit.
The total value of the deal was previously reported at $162 million.
The projects will be developed in two stages.
The first stage, scheduled for 2026-2028, will involve developing an open-pit mine at Tulkubash using heap leaching technology, with 4 million tons of ore to be processed annually. Annual gold production is expected to reach up to 110,000 ounces. Investment at this stage will amount to $150 million.
The second stage, scheduled for 2028-2031, will involve developing the Kyzyltash sulfide deposit using open-pit and underground mining, as well as flotation, bacterial oxidation and carbon-in-leach (CIL) technologies. Planned annual gold production is 190,000–230,000 ounces, with investment estimated at around $400 million. (24.kg)