Exploration group Celtic Resources has announced better-than-expected results from its mining operations in Kazakhstan in 2002.
Gold production from the Suzdal gold mine, which is fully owned by Celtic, was 37,176 ounces, which is 6 per cent higher than the predicted output of 35,000 ounces. Total operating costs at Suzdal were $169 (€247) per ounce.
The company is in the process of raising $18 million with a Kazakhstan bank to enable it to expand its mining operations in Suzdal. The expansion will bring production at the mine to 100,000 ounces per year by 2004, the company predicts.
Another mine, at Zherek near Suzdal, which is 75 per cent owned by Celtic, is expected to start production in April. Output from this mine is expected to be 20,000 ounces this year and 50,000 ounces per year by 2005.
In Russia, redevelopment work is under way on the large Nezhdaninskoye gold mine, which is owned by a Russian mining company in which Celtic holds a 50 per cent stake.
Celtic also announced a significant investment by Deutsche Bank AG, whose Special Situations Group has agreed to invest $4.7 million by way of a subscription for 2.7 million new ordinary shares. New shares represent 8.9 per cent of the enlarged issued ordinary share capital.
"We welcome Deutsche Bank's funds as significant shareholders in Celtic and look forward to their ongoing support of the company," said Mr Kevin Foo, Celtic's managing director. "To attract such a group is an endorsement of confidence in Celtic's future."
