Central Asian Minerals and Resources PLC

May 25, 2012 09:00 ET


                                                                                              25 May 2012

                                CENTRAL ASIAN MINERALS AND RESOURCES PLC
                                       ("CAMAR" or the "Company")
                                   FOR THE YEAR ENDED 31 DECEMBER 2011


    *       GBP 4,377105 raised through a placing of 6,734,008 units at 65 pence per unit
    *       Maiden profit after tax of USD319,274 (2010 loss USD1,048,501)

    *       Commencement of mining and operations review
    *       Current production of 1,000oz of gold per month

    *       Acquisition of Gulf International Minerals Limited
    *       Neil Stevenson appointed COO
    *       David Russell appointed to Board

Post period
    *       Dick Nanna appointed to Board
    *       Drill programme at Aprelevka expected to commence in next two to six weeks

Chairman's Statement

The  first few months of 2011 saw a number of significant developments for the Company. On 26 April 2011,
CAMAR  completed the acquisition of Gulf International Minerals Limited ("Gulf UK"), the joint  owner  of
the  Joint Tajik-Canadian Limited Liability Company "Aprelevka". Aprelevka is licensed to operate and  is
currently operating a number of gold deposits in Tajikistan.

The  Company had revenues of USD48,000 in the year ended 31 December 2011 and made a profit after  income
tax  of  USD319,274 (2010: loss of USD1,048,501). The Company's share of income from the Aprelevka  Joint
Venture  during  the  year was USD409,562. Up until 26 April 2011, CAMAR was an  investment  vehicle  and
received no contribution from its 49 per cent interest in Aprelevka. Since that date the Company has been
solely focused on the development and exploitation of the Aprelevka mine.

The  circular to shareholders in the Company issued on 31 March 2011 containing further information about
the  Acquisition  included a Competent Person's Report ("CPR") which identified   the  opportunities  and
risks  associated with Gulf UK's interest in the Aprelevka mine and made certain recommendations  to  the
Company as to how best to exploit the opportunities there. One of the key recommendations of the CPR  was
that  the  Company  should  undertake additional investigative work on the  resources  at  Aprelevka  and
determine  the extent of the ore bodies at the mine sites including the lower grade zones, as  these  had
been  disregarded by early Soviet geological surveys.  It should be noted that Aprelevka has six  licence
areas, one of which is called Aprelevka and this is the licence area that we are initially focusing on.

These findings and others were underscored by David Russell, Chairman of Fire River Gold and Pure Nickel,
who  joined the Board in June 2011.  David was instrumental in hiring Neil Stevenson as COO of CAMAR  and
Technical Director of the Aprelevka Operation and for attracting to our Board of Directors Richard Nanna,
a very experienced and successful geologist, who joined the CAMAR Board in February 2012.

Following the appointment of Neil Stevenson as Chief Operating Officer in Tajikistan, the Company is  now
well  placed  to  push  forward  with its current strategy. Neil, who is a  Fellow  of  the  Australasian
Institute  of  Mining  and  Metallurgy, has over 25 years' experience operating  in  both  open  pit  and
underground  mining  operations, most recently with Hambledon Mining PLC in  Kazakhstan.  Neil's  initial
tasks  are  to assess the operation of the Company's mill at Kansai and to examine mining methods  across
the  various  licence  areas as part of CAMAR's efforts to bring Aprelevka's historically  high  recovery
costs down to a level equal to or below industry benchmarks.

This  review of the mining and processing operations has commenced.  Further assessment will be conducted
using external consultants and local staff.  Initial indications are that significant improvements can be
made  to the current operation that will allow some increased production within the existing budget.   In
addition  we  will be examining the heap leach potential of the Aprelevka mine site.  Subsequent  to  the
validation  sampling and testing, a re-evaluation of the model data on the Aprelevka mine  site  will  be
carried out to determine the impact of current gold prices on the pit design.

During August 2011 GBP 4,377,105 was raised through a placing of 6,734,008 units at 65 pence per unit  (a
"Unit"). Each Unit comprises one ordinary share of no par value in the Company (an "Ordinary Share")  and
one  warrant to subscribe for an Ordinary Share at 65p per Ordinary Share at any time before 30 June 2014
(the "Placing"). These funds have enabled the Company to complete our contribution to the Aprelevka Joint

The  current  production is approximately 1,000 oz of gold per month and as the planned improvements  are
implemented  to the processing plant this should move towards 1,500 - 2,000 oz per month  over  the  next
twelve months.

Under  the  guidance  of  Richard  Nanna, the exploration programme is  currently  being  finalized.  The
Aprelevka  mine  site  geological drill hole data is being analyzed via a  MicroMine  computer  modelling
program. With the computer generated diagram we are better able to view a three dimensional model of  the
current known gold resources and also review and fine tune the upcoming exploration programme to finalize
drill  hole  locations. We are projecting that approximately 18,000 metres of in-fill  core  and  reverse
circulation  ("RC") drilling will be required to upgrade our database and further analyse  the  Aprelevka
mine site ore deposit for additional gold resource potential.

We  will  shortly have two drill rigs on site at the Aprelevka mine site: one core rig and  one  RC  rig.
Start  up  of  the drill programme is expected within the next two to six weeks for both drills  and  the
drill  programme is projected to take six months to complete. Upon completion of the drill  programme  we
will remodel the Aprelevka mine site ore body in order that additional gold resources may be defined.

By  the  end of this or early next year we hope to have a Joint Ore Reserves Committee ("JORC") compliant
inferred resource that we will be able to announce to the market.

The  Directors are confident that Aprelevka has the potential to produce material benefits to the company
and its shareholders and we look forward to updating you again in due course.

The directors do not recommend the payment of a dividend for the year.  No dividends were paid during the

Oliver John Vaughan

The Directors of the Company are responsible for the contents of this announcement.

Central Asian Minerals and Resources PLC                                                 01624 679 000
Christine Melian

St Helens Capital Partners LLP                                                           020 7368 6959
Mark Anwyl or Duncan Vasey

Newgate Threadneedle                                                                     020 7653 9840
Graham Herring or Richard Gotla


                                                                   Year ended             Year ended
                                                                  31 December            31 December
                                                                         2011                   2010
                                                                          USD                    USD
 Revenue                                                               48,000                157,000
 Administrative expenses                                          (3,070,864)            (1,205,038)
 Net income from joint venture                                        409,562                      -
 Group operating loss                                             (2,613,302)            (1,048,038)
 Excess of the investor's share of the net fair value of            2,932,798                      -
 the joint venture's identifiable assets and liabilities
 over the cost of the investment
 Interest receivable                                                    4,585                    612
 Finance costs                                                        (4,807)                (1,075)
 Profit/(loss) before income tax                                      319,274            (1,048,501)
 Income tax                                                                 -                      -
 Profit/(loss) after income tax                                       319,274            (1,048,501)
 Other comprehensive income:
 Exchange difference on translation of foreign                                                      
 operations                                                         (473,041)                      -
 Share of other comprehensive income of joint                                                       
 venture                                                            (178,133)                      -
 Loss  for the year and total comprehensive loss for  the                                           
 year                                                               (331,900)            (1,048,501)
 Earnings /(loss) per share                                                                         
 Basic                                                                   0.03                 (0.41)
 Diluted                                                                 0.02                 (0.41)

All losses for the year are attributable to the equity shareholders of the company.
All operations are continuing operations.


                                                                        As at                   As at
                                                                  31 December             31 December
                                                                         2011                    2010
                                                                          USD                     USD
 Non-current assets                                                                                  
 Property, plant and equipment                                        233,604                 300,080
 Investment in joint venture                                       12,166,521                       -
                                                                   12,400,125                 300,080
 Current assets                                                                                      
 Trade and other receivables                                          113,923                 791,964
 Cash and cash equivalents                                          1,360,080                 498,485
                                                                    1,474,003               1,290,449
 TOTAL ASSETS                                                      13,874,128               1,590,529
 EQUITY AND LIABILITIES                                                                              
 Equity attributable to owners of the parent                                                         
 Called up share capital - equity                                           -                       -
 Share premium account                                             14,606,453               2,550,580
 Retained earnings                                                  (855,350)             (1,079,564)
 Total equity                                                      13,751,103               1,471,016
 Trade and other payables                                             123,025                 119,513
 TOTAL EQUITY AND LIABILITIES                                      13,874,128               1,590,529


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