«Altynken» LLC

The Taldy-Bulak  Levoberezhny deposit is located in the Chui region of the Kyrgyz Republic, 120 km east of Bishkek and 12 km south of Orlovka village in the foothills of the Tien Shan range in northern Kyrgyzstan. There is a railway station 6 km east of the village of Orlovka in the village of Kemin.

The Taldy-Bulak  Levoberezhny deposit was discovered during the Soviet period and was the subject of numerous geological surveys between 1963 and 1995. During the same period, a feasibility study was carried out according to the Soviet model.

During 1995-2001, the Kyrgyz Republic attracted various foreign investors to jointly implement the Taldy-Bulak Levoberezhny project.

In 1995, Plutonic Resources appointed Signet Engineering Pty. Ltd. and JM & EJ Rose Pty Ltd. to study enrichment and underground mining projects for subsequent preparation of a feasibility study.

In 1996, Malaysian Mining Corporation Burchard (MMC) commissioned engineering and construction company SNC-Lavalin to carry out a feasibility study for the M1 and M2 zones of the Taldy-Bulak Levoberezhny deposit, evaluate the drilling program, carry out new adits and assist with drilling operations. After completing the planned work program, SNC completed a feasibility study, including reserve calculations.

Based on additional exploration work, in 2000, Malaysian Mining Corporation Burchard (MMC) commissioned Minproc Limited to review SNC's feasibility study using an updated geological model, as well as revise the treatment process technology. Due to low gold prices, the investor company recognized the bank feasibility study as negative and refused to finance it.

In 2001-2002, the project was transferred to Kyrgyzaltyn OJSC, which commissioned the local design and research center Ken-Too to carry out investment feasibility studies.

In 2003,  Kyrgyzaltyn OJSC, together with the Australian company Central Asia Gold Limited (CAGL), created the Joint Venture “Taldy-Bulak Gold Mining Company LLC” (TBGMK) to carry out work on the Taldy-Bulak Levoberezhny project. САGL developed a feasibility study for the Bank, which in 2004 was defended at a  meeting of the State Reserves Committee at the State Geological Agency.

The total reserves of the Taldy-Bulak Levoberezhny deposit of categories C1+C2, approved by the State Reserves Committee of the Kyrgyz Republic on June 29, 2004, were: gold - 64.4 tons with an average content of 7.23 g/t, silver in category C2 - 45.2 tons with an average content 6.08 g/t.

At the end of 2005, due to failure to comply with the terms of the License Agreement, TBGMK LLC was deprived of the license to develop the Taldy-Bulak Levoberezhny deposit. The joint venture was liquidated. Kyrgyzaltyn OJSC began searching for new investors for the joint implementation of the Taldy-Bulak Levoberezhny project.

In the spring of 2006, an agreement on joint activities was signed between Kyrgyzaltyn OJSC (40% equity participation) and the Kazakh company “Summer Gold LLP” (60% equity participation), approved by a resolution of the Government of the Kyrgyz Republic, which resulted in the creation of a joint venture “Altynken LLC”.

At the beginning of April 2006, the State Agency for Geology and Mineral Resources under the Government of the Kyrgyz Republic issued a license for the right to use subsoil for the purpose of development - 471-AE and a license for the right to use subsoil for the purpose of geological study - 470-AP for the Taldy-Bulak Levoberezhny deposit to Altynken LLC.

On September 28, 2007, the State Geological Agency concluded with Altynken LLC a License Agreement No. 2 to the License 471 AE for the right to use subsoil for the purpose of developing the Taldybulak Levoberezhny deposit and constructing a mining and processing plant, valid until January 5, 2026. The conclusion of this License Agreement confirmed the fact of transition from the stage of searching for design solutions to the stage of detailed design and construction of a mining enterprise.

In 2008, Altynken LLC developed a feasibility study for the development of reserves of the Taldy-Bulak deposit by underground method. However, the onset of the global financial crisis slowed down the pace of construction work due to the lack of cheap financing acceptable for the project.

However, in 2008-2009, construction of auxiliary facilities and infrastructure was carried out (roads, reconstruction of the administrative building, electricity supply, water supply, etc.), preparation of sites for the placement of a gold recovery plant (GRP), tailings storage facility and capital adits for conveyor,  ventilation and transport slopes, an industrial site for an inclined transport ramp in the Taldybulak gorge was formed, portals of capital adits were raised and their excavation began (200 linear meters were completed by the end of the year), the main mining equipment was purchased, and a training site for operators of modern tunneling equipment was organized.

A significant slowdown in the pace of construction raised the issue of non-fulfillment of the terms of the License Agreement. As a result of negotiations held at the end of 2010 and the beginning of 2011, a new License Agreement was signed with Altynken LLC, which made it possible to extend the time for putting the mine into operation until the beginning of 2014. At the same time, the investor, Summer Gold LLP, paid penalties in the amount of USD 5.2 million.

In August – September 2011, the Kazakh investor of the project, with the consent of the Kyrgyz side, sold its equity participation in the project to the Chinese company “SuperB Pacific Ltd.” (the parent company of Zijin is one of the largest mining companies in China). Kyrgyzaltyn OJSC and SuperB Pacific Ltd. signed an Agreement on the transfer of rights and obligations. Following the completion of the acceptance and transfer of objects, Altynken LLC will start full-scale construction of the mining enterprise.