The Orsu Metals Group is starting its feasibility study at the sulphide copper mine it owns in Kazakhstan. The London based mineral exploration company is examining the use of Chinese equipment to reduce its operational costs and to seek potential clients who would be interested in purchasing copper concentrate.
Orsu Metals Group expects the study to cost $4.2 million and hopes to fund it from available resources. The mine in question is the Karchiga volcanogenic mine located in north east Kazakhstan. If all goes according to plan the company will begin construction at the Karchiga project in early 2012.
Orsu metals Group has a 94.75 % stake in the mine. It hopes that the production from the mine will begin by early 2013. The company which is listed in the Toronto Stock Exchange saw its shares rise by 44 % on Thursday after the announcement.
As per Nicholas Chalmers an analyst with Canaccord Genuity more positive news can be expected for the stocks of Orsu Metal Group as it moves ahead with its mining plans. This is definitely good news for share holders who have seen the values of shares drop in the last six months by 38%.