A sulphide concentrator would process approximately 750,000 mt/y of ore, using relatively fine grinding and selective sul-phide flotation to produce a 27.9% copper concentrate. First production is planned for the fourth quarter of 2013.

To reduce initial capital expenditures, construction of the SX/EW plant would be delayed until after payback of initial capi-tal expenditures required to start up the sulphide operation. Oxide ores would be processed by heap leaching and solvent extraction/electrowinning (SX/EW) over a period of 4.5 years beginning in 2018 at a processing rate of 360,000 mt/y.

Initial capital expenditures to start up the sulphide operation are estimated at $115 million. Total capital project expen-ditures, including the SX/EW plant, are estimated at $147 million. Life-of-mine, pre-tax cash operating costs are estimated at $1.47/lb of copper.

SRK Consulting (UK) Ltd. was the lead contractor in preparation of the Karchiga feasibility study. The study considers a probable mineral reserve of 8.5 million mt of sulphides in two pits containing 145,200 mt of copper at an average grade of 1.71% copper and 1.5 million mt of oxides in a third pit containing 21,400 mt of copper at an average grade of 1.43% copper.

The environmental and social impact assessment study for the Karchiga project was completed by Wardell Armstrong International in January 2012. Orsu Metals expects to receive the necessary construc-tion permitting approvals from the Kazakh authorities by the middle of 2012.