Tau-Ken Samruk JSC and RK MID entered into the contract on barite-polymetallic ores and silver mining

Tau-Ken Samruk JSC and Ministry of
Investment and Development of the Republic of Kazakhstan have entered into a
contract on barite-polymetallic ores and silver mining at Tuyuk deposit in
Almaty region. According to the contract signed for 25-year period, the project
will be implemented by 4 stages:

· 2016-2020 – geological
exploration (GE): deposit reserves re-evaluation and approval by RK SCR, initial
mine development, construction of infrastructure and procurement of opencast
mining equipment;

· 2021-2024
– construction of processing plant;

· 2021-
2032 – opencast mining;

· 2033-2043
гг. – subsurface mining.

Deposit is supposed to be developed with the use of combined (opencast and
subsurface) mine method. Open mining will involve extraction of the following
minerals: ore – 8,814 thousand tons, lead – 115.7 thousand tons, barite – 4,476.8 thousand tons, silver – 112.8 tons,
whereas subsurface mining will be used to produce:
ore – 10,952 thousand tons, lead – 156,3 thousand tons, barite – 2611,0 thousand
tons, silver – 69,2 tons.

Expected annual capacity of the plant is 1,000 thousand tons of ore, and
number of opening vacant positions is up to 1,000.

Based on the earlier geological exploration, high-grade lead-barite ores
are confirmed to be available below the proven reserves of Tuyuk deposit. According
to the history records, copper mineralization is identified to have depth and
strike extension beyond the licensed area and to expand to Tuyuk-Temirlikskaya zone.
Tuyuk deposit is potentially productive within
and beyond the boundaries of the contracted area, depth and strike extent worth
being explored and evaluated.

The contract is expected to enhance lead and silver mineral base of Tau-Ken
Samruk JSC as well as copper, based on further exploration.