FML Kazakhstan LLP possesses the sole Naimanjal area extraction contract (№299 signed on 04 March 1999). On the basis of said agreement, the Company owns all rights on exploration and followed extraction of precious (gold, silver, platinum) and non-ferrous (copper, plumbum, zinc) metals on and around the Naimanjal areas in Pavlodar, Karaganda and East Kazakhstan region. Initial area of the territory was 8,108.8 km2. Currently, after prospect and evaluation survey, the contract area is 280 km2 and consists of four sections: Naimanjal (gold and silver), Baitemir (copper and gold), Beschoku and Yubileinoye (copper and gold) and Koskuduk (gold).
Beschoku & Yubileiny Deposits
Beschoku deposit holds approved gold reserves of about 2.0 tons at an average grade of 2.27g/t, 20 km to the south of Baitemir field. These ores also contain copper with an average grade of 0.44%. The deposit is confined to Cambrian-Ordovician volcanic-sedimentation masses troubled due to medium acid Carboniferous dykes. Beschoku field is of the type of mineralized zones with gold and copper mineralization, but most likely it emerged in the collision stage of earth crust development. The field has features of gold porphyry type deposit (Yubileinoye in Kazakhstan with reserves of about 60 tons of gold) with propylite-beresite and potassium feldspar wall rock alteration. Inferred resources of Beschoku ore field are estimated up to 40 tons of gold. Ores also contain copper in an amount of 0.2-0.5%.
Baitemir Field
Beschoku deposit in the northern Kazakhstan is analogous to Baitemir field, where reserves amount to about 4.0 million tons of copper. Some features of the geological structure are similar to the recently discovered unique Ayu Tolgoi field (Mongolia) with reserves of about 20 million tons of copper. There are also individual gold ore bodies occurring in the deposit with gold content of 0.3-12.5g/t. Width of such ore bodies reaches 8.0m. FML Kazakhstan expects to identify gold ore deposit with reserves of about 10.0 tons of gold and copper-porphyry-type deposit with reserves of 0.5 - 1.0 million tons of copper and more, as well as about 50 tons of gold (in porphyry ores).
Naimanjal Deposit
The field was identified during 1:200000 scale survey in 1977-1981 and is of gold and silver deposit type in the sulfide ores. Ore bodies are steeply dipping; ore bodies’ thickness will reach 20-25m. Gold content in the samples varies from 0.3 to 10.0 g/t. Currently FML Kazakhstan plans to estimate sulfide ores. According to FML Kazakhstan Geological Survey, estimated resources of sulfide ore of the deposit to a depth of 250 m is estimated at about 20 tons of gold and 500 tons of silver at an average gold grade of approximately 2.0 g/t and silver - 50.0g/t. The deposit can be developed using open pit method.
Koskuduk Deposit
Based on SRK Exploration Services (UK) report, the total resource of Koskuduk field is 2,936,240 tons of oxide ore at an average grade of 1.32 g/t Au for 3865 kilograms of contained gold (ca. 120,781 ounces) and 5,916,450 tons of sulphide ore at an average grade of 1.43 g/t for 8,480 kilograms of contained gold (ca. 265,000 ounces).