Kryso Resources on track to start gold production from Pakrut in 2013

Kryso Resources told investors that it remains on track to start piron ore magnetite beneficiationroduction from its flagship Pakrut gold project in Tajikistan next year after making significant progress there during 2011.

During the year, the company undertook an ambitious exploration programme, which saw it achieve the highest amount of drilling in one year than ever before, resulting in a 40 percent jump in the Pakrut mineral resource to more than five million ounces of gold.

In the meantime, Kryso secured a mining licence for Pakrut, which runs until 2030.

On the financial front, Kryso secured a loan facility for a total US$93.5 million from its largest shareholder China Nonferrous Metals Int’l Mining (CNMIM) last month.

CNMIM also said it would exercise its warrants to subscribe for 73.3 million shares in the company, raising a further US$24 million.

Finalising the loan facility with CNMIM should enable the company to begin full scale construction imminently.

“We have made significant progress on the Pakrut Gold Project during 2011, including the commencement of construction of project infrastructure in October 2011,” said non-executive chairman of Kryso Tao Luo.

“We are on target to commence production in the fourth quarter of 2013.”

Running through Kryso’s financial results, losses increased 25 percent to US$1.39 million as administration expenses rose 69 percent to US$1.58 million and development work costs climbed 81 percent to US$4.78 million.