Oriel to develop Voskhod chrome mine in Kazakstan

Based on a preliminary assessment, London-based Oriel Resources (ORL-T) has decided to develop its wholly-owned Voskhod chrome deposit in the Khromtau district of western Kazakhstan’s Aktobe region, even as it pushes forward with a full feasibility study.

Oriel bought Voskhod in February 2005 for about US$15.0 million in cash and 9.2 million shares worth another US$10 million.

This summer, the U.K. office of Steffen, Robertson & Kirsten determined that Voskhod contains indicated resources stand at 18.7 million tonnes grading 46.2% Cr203.

SRK’s study found that the project’s net present value is US$329 million (pre tax), and its internal rate of return is 62%, using a 10% discount rate and a chromite ore (high grade lumpy and fines concentrate) sale price of US$170 per ton.

Capital costs are pegged at under US$50 million to produce 700,000t per annum of chromite ore from an underground mining and beneficiation operation.

The mine could conceivably spin off annual gross revenue from sales of US$85 million.


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