Kazax Minerals Inc.
TSX VENTURE : KZX

Kazax Minerals Inc.

May 22, 2012 09:00 ET

Kazak Announces Key Corporate Developments

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 22, 2012) - Kazax Minerals Inc. (TSX VENTURE:KZX) ("Kazax" or the "Company") is pleased to announce that it has been advised by the Project Manager; Stonehouse Construction Ltd ("Stonehouse"), of the following progress at the Lomonosovskoye Iron Ore project in Kazakhstan (the Deposit). Stonehouse has advised that key engineering contracts have been executed, the core project development team has been appointed; and critical mine planning, beneficiation engineering, test work and confirmation drilling have commenced.

Project Background

Historically a total of 412 drill holes totaling 56,000 meters outlined skarn iron ore mineralization at the NW deposit and the Central deposit beneath 60 to 100 metres of overburden. Average grade is approximately 35% and mineralization extends to a 1,400m depth in the NW deposit and approximately 900m at Central. Mineralization is open in several directions.

A technical report dated Dec. 15, 2011, prepared by Mining Associates Pty. Ltd. of Australia with respect to the Deposit and compliant with NI 43-101 (the Report), has been completed and accepted for filing by the TSX Venture Exchange for review and has been filed on SEDAR.

To view accompanying map, visit the following link: http://media3.marketwire.com/docs/KZX_522Map.jpg

Project Development Team

The project team has been established in the Company's Astana Office and comprises experienced expatriate and local personnel in the key areas of:

  1. Mine Planning - Dr. Juan Camus leads this team and holds a Doctorate in Mining Planning from Queens University in Canada. Dr Camus has over 25 years mining experience including past employment with Codelco (Chile) and Rio Tinto (Australia).
  2. Beneficiation Plant Engineering - Mr. Jayanti Murthy leads this team and holds a Masters in Applied Science (Process Engineering). Mr. Murthy possesses over 23 years experience in the iron processing sector including past employment with Tata Steel (India) and Gulf Mining Co (Oman).
  3. Approvals, Permitting and Stakeholder Relations - Mr. Arman Parimbekov leads the approvals and permitting team. Mr. Parimbekov holds an honours degree in Finance & Economics and a Masters in Public Policy from the University of Michigan -Ann, Arbor USA. He has over ten years experience within the public and business sector in Kazakhstan including past employment with the World Bank Group (Washington, DC), Ministry of Economy and Budget Planning, Chancellary of Prime Minister.
  4. Infrastructure Development - Mr. Umidbek Tungushbayev leads the infrastructure studies team. Mr. Tungushbayev holds an honours degree in Construction. He has extensive experience in construction within Kazakhstan and the CIS region.
  5. Sales & Marketing - Ms. Elena Pirogova leads the 'Product Sales' team and holds an honours degree in Engineer - Metallurgist. Ms. Pirogova has over of 14 years experience and past employment includes the Byelorussian Steel Works and Hamriyah Steel FZC.
  6. Procurement - Mr. Timur Mussin leads the procurement team. Mr. Mussin has over ten years procurement experience within Kazakhstan and the CIS region.

Confirmation Drilling

The Report recommends an 2012 US$1.6M work program consisting of core drill holes at the NW and Central deposits. The drilling program is designed for the purpose of:

a) validation of historical drilling, particularly in areas of poor core recovery; and

b) delineation of mineralized zones, particularly in areas requiring in-fill drilling where the historical drill holes were off section or where there is low confidence in the historical mineralized zone extrapolations and continuity.

The initial stage (4 holes; 1,665m) of the final 2012 confirmation drilling program has commenced and is due for completion by end June 2012. Following a detailed review of the drilling history on the Property; a twenty-two hole (6,995m) confirmation drilling program was determined by the independent QP (Mining Associates of Australia) and the local supervising geologists. Five holes (1,890m) of this program were completed last year (by Safin) and the balance of the 22 hole program is due for completion in August 2012 under the technical guidance of the QP. Full permitting approval for the 2012 drilling program is in progress with MINT.

The resulting data will form the basis of the reserve modeling to both NI43:101 and Republic of Kazakhstan (RoK) standards.

In parallel with the 2012 confirmation drilling program the following contracts for critical engineering tasks have been awarded or are about to be awarded:

  1. Beneficiation Test-Work & Geological Assay
  2. Beneficiation Plant - Technology Selection and Front End Engineering & Design (FEED) - with LogiCamms a leading Australian engineering, project delivery and asset management company operating in the Mining and Minerals, Hydrocarbons, Infrastructure and Specialist industries. The project team brings extensive Iron Ore experience through mines such as Tom Price; Hope Downs, Marandoo; Roy Hills (Australia); Sundance (Cameroon) and Zanaga (Congo).
  3. Qualified Person / NI 43101 Compliance - awarded to Mining Associates.
  4. Environmental Impact & Approvals Study - awarded
  5. Site Geotechnical Works (including hydrology)
  6. Site Topographic Survey - awarded
  7. Mine Scenario Modeling - awarded
  8. Engineering scoping design for:
    • Railway spur line
    • Gas Supply
    • Electricity Supply
    • Water Supply
    • Communications Infrastructure

About the Company

Kazax Minerals Inc. is a mining exploration and development company focusing on iron ore. Other world-wide target acquisitions are being sought. Kazax aims to be a significant mid-tier international mine exploration and development company in the iron ore sector.

For additional information readers are invited to review additional corporate and property information available on SEDAR at www.sedar.com.

ON BEHALF OF THE BOARD

David Savage, President and Chairman of the Board

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "schedule", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the Company s future operations and prospects. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning equipment and crew availability, and joint venture partner financial capability. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Company's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, reservoir performance, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, and political and economic conditions. Additional information on these and other factors is available in continuous disclosure materials filed by the Company with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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