Oriel commissioned SRK in October 2005 to prepare a feasibility study on Oriel’s 100% owned Voskhod chrome project, Kazakhstan. SRK were assisted in the preparation of the study by Dowding Reynard & Associates (International) (Pty) Ltd, South Africa (DRA-I) on process plant and infrastructure matters and Mintek, South Africa who performed all the beneficiation test-work on ore samples selected by SRK from the 2005 Oriel core drilling programme. The Voskhod study and the resource and reserve statements were prepared by Dr Alwyn Annels and Mr Mike Beare of SRK, who are both competent persons in accordance with definitions set out in National Instrument 43-101.

 

 

Voskhod Infrastructure

 

Infrastructure for the mine include a road to the proposed new rail sidings and ore load out facilities at a location 14km to the north west of the site, provision of a 100kV power line from the HT supply at the Kempersai sub station 60km north of the mine, and potable and process water supplies. The facilities designed ensure the Voskhod operations are fully independent.

 

Voskhod Environmental and Social Responsibilities

 

Work is currently being completed on a full Environmental and Social Impact Assessment, in accordance with World Bank Guidelines. This is due to be completed in the last quarter of 2006. As a part of this document, SRK will also produce an Environmental management Plan. Public consultation for the project was initiated in February 2006.

 

The main areas of public interest in the on-going consultations are;

• Employment for local citizens in the construction and operation of the mine.
• Investments in infrastructure development.
• Improvement of the quality of medical services.
• Maintenance and construction of roads.

 

The following key environmental protection measures have been approved;

• Lined facilities for mine settling, tailings and return water dam.
• Berms and ditches to deflect clean water away from mine facilities.
• Treatment of all water discharged to the environment.
• Future diversion of the seasonal Karaagash River away from any possible zone of mine subsidence.
• Full closure and rehabilitation for the site.

 

SRK considers that the Voskhod chrome project is unlikely to pose any significant environmental impacts to sensitive receptors, which cannot be adequately managed through the implementation of appropriate mitigation and management control measures.

 

The life of mine plan generated in the feasibility study allows for closure rehabilitation. Due the pre-existing levels of environmental degradation SRK considers it unlikely that there will be ongoing liabilities beyond closure. In the Feasibility Study a sum of US$3.2 million has been allocated for closure rehabilitation with US$1 million for the tailings facility alone.