QUARTERLY ACTIVITIES REPORT
Period ending 30 September 2010
HIGHLIGHTS
Andash Gold-Copper Project Development
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Progress towards full-scale development
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Detailed engineering nearing completion
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Project NPV doubled to US$270M at current metal prices
Andash Gold-Copper Project Expansion
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Established additional exploration target at Andash, providing further potential for project expansion
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Letter of intent to acquire Aktash deposit 8km from Andash
Exploration
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Encouraging results from Bekbulaktor Gold Prospect at Bashkol
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Drilling program completed at Kurgan Gold Prospect
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Geothermal shallow temperature survey on North Kyrgyz prospect showing encouraging results.
Corporate
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Oversubscribed placement and rights issue raised $12.5M
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Project finance for Andash (capital cost US$96M) well advanced
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Macquarie Bank mandated to provide US$50M debt component
KyrgyzRepublic
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Parliamentary elections completed successfully
Quarterly Overview
During the quarter, Kentor Gold Limited (Kentor or the Company) advanced the Andash Gold- Copper Project in the Kyrgyz Republic closer to full-scale development. Kentor is targeting early 2012 for the commencement of production from Andash, the Company’s first mine.
Pre-development activity progressed as Kentor successfully addressed funding requirements for the project. A total of $12.5 million was raised through a placement and a rights issue, both oversubscribed. Subsequently, Macquarie Bank was appointed to arrange US$50 million in debt funding towards the project’s total capital cost estimated at US$96 million.
The Company further enhanced the potential to extend and expand the project by establishing an additional gold exploration target at Andash Zone 2 and Zone 3.
