Kentor Gold Ltd
(ASX:KGL) will advance its $US96 million Andash copper-gold project in central Asia, following the board endorsing a full scale development.
The gold and base metals explorer says the high grade, low cost Andash project is due to start production in early 2012, with initial development already underway.
Chairman John Barr says annual production at Andash is planned at a rate of 70,000 ounces of gold and 7,400 tonnes of copper in the first six years, with exploration results at nearby deposits presenting high potential opportunities to extend the life of the project.
Mr Barr adds that Kentor is on line to join the ranks of gold-copper producers with one of the lowest cost gold mines in the world.
Kentor advises project financing is well advanced with Macquarie Bank appointed to arrange $US50 million in debt.
Kentor Gold booked a loss of $2.2 million in the first half of 2010.
