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KAZNICKEL LLP

KAZNICKEL LLP is the owner of the Contract for exploration and production at Gornostay cobalt-nickel ore field.

The field is located in Beskaragay district of East Kazakhstan region, 110 km to the west from Semey. The Irtysh river divides the field into two parts: Right riverbank and Left riverbank.

www.qaznickel.com

Geography

The location of the project implementation is East Kazakhstan region, Beskaragay district, in close proximity to the raw materials base – Gornostay cobalt-nickel ore field.

Акмолинская
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Костанайская
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Северо-
Казахстанская
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Павлодарская
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Карагандинская
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Восточно-Казахстанская
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Алматинская
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Жамбыльская
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Туркестанская
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Кызылординская
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Актюбинская
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Западно-
Казахстанская
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Атырауская
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Мангыстауская
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Beskaragai district

Activity

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Gornostaevskoye deposit

Pursuant to independent evaluation performed by CSA Global, a Consulting Mining Company (Report # R270.2019 dated June 24, 2019), Mineral Resources of Gornostayevskoye cobalt-nickel deposit are:

M.R. - 169,4 mln.tons;
Nickel - over 1 mln.tons;
Cobalt - over 65 ths. tons,

including Mineral Resources within the boundaries of license territory of "KAZNICKEL" LLP:

M.R. - 106,5 mln.tons;
Nickel - 627,6 ths. tons;
Cobalt - 42,23 ths. tons.

INFRASTRUCTURE

There is the infrastructure needed for mining operations at the field:

Railway through the contract area;
Asphaltic road (Semey – Kurchatov – Pavlodar);
200 kv overhead power line through the southern part of the contract area;
110 kv overhead power line through the northern part of the contract area.

Development strategy

In 2018, the decision to select a new strategy for the field development by means of new technologies which have not been used earlier in the field of nickel extraction, notably by the method of drillhole in situ leaching (drillhole ISL) was taken.

The strategic aims of this new method using are:
- eliminate the negative impact on the ground surface and environment comparing to the conventional methods of metal extraction;
- automize the main part of the production cycle;
- significantly reduce the prime cost of the metal extracted comparing to the methods of nickel extraction used in the world now.
For the moment:
- investing partner on implementation of this project has been attracted;
- approval from authorized bodies for application of drillhole ISL method has been obtained;
- the work on entering into the additional agreement to the Contract for pilot production is being conducted;
- preparatory mining and construction-assembling works on mine erection have been performed;
- works on mine launch and metal extraction are on.

Development perspectives

Today, a number of large international nickel consumers has interest in purchase of metal in future after the mine has reached the commercial production.

In view of the high world demand on nickel and forecast growth of need in nickel the Company is interested in active joint development of the field with leading producing companies using nickel in their production, as well as with trading companies.

Contacts

99 B, Abay Kunanbayev Street , Semey city,
071405, East Kazakhstan region , Kazakhstan
phone : +7 722 236 07 74
+7 722 236 07 72