Commercial discovery application approved for Boguty

Central Asia Resources subsidiary, Buguty-Palm LLP has received approval....

  Central Asia Resources subsidiary, Buguty-Palm LLP has received approval from the Kazakhstan government for the commercial discovery application on its Uenke Bulak gold project at Boguty in Kazakhstan.In Kazakhstan, a commercial discovery application is made to convert an exploration license into a mining license.Central Asia Director, Angela Dent said the company now has a fifteen-year mining license for Uenke Bulak, on which it is currently undertaking a feasibility study. “Subject to that study, we could be producing gold from this prospect in 2009," Ms Dent said. “The approval of commercial discovery on Uenke Bulak removes one of the risk factors on this project and is another step towards development.”A diamond drill rig has commenced in-fill drilling at Uenke Bulak with the aim of upgrading the inferred resource tonnage and grade and to provide additional sample material for further metallurgical testing if required.An initial sample has been shipped from Kazakhstan to Gekko Systems in Ballarat to commence testwork that will determine the amenability of the ore to vertical shaft impactor comminution, gravity concentration, flotation, intensive cyanidation and electrowinning.Ms Dent said Central Asia would remain focused on exploration in Kazakhstan to confirm JORC-compliant gold resources in 2008.