Sasa TSF 4 incident update

5 November 2020

CENTRAL ASIA METALS PLC

('CAML' or the 'Company')

Sasa TSF 4 incident update

Central Asia Metals plc (AIM: CAML) today announces a further update following the 14 September 2020 leakage at its Sasa Tailings Storage Facility 4 ('TSF4').

Environmental update

Following receipt of the appropriate ministerial approvals, the clean-up programme of the Kamenica River commenced in late October.

The clean-up process is separated into two phases. Phase 1 involves the physical removal of all reasonably extractable tailings from the full 13 kilometre length of the river to Lake Kalimanci, and this is expected to be completed during Q4 2020. To date, a four kilometre stretch of the river has been cleaned in line with the detailed technical programme of works.

Phase 2 involves the installation of in-stream sediment traps to collect the tailings not recovered during Phase 1, and subsequent removal of that remaining material over time. The sediment traps will be installed during Q4 2020, although removal of the remaining tailings not extracted during Phase 1 will continue into 2021.

Wardell Armstrong Limited, which has advised CAML on its river remediation programme, will complete a baseline report detailing the initial conditions of the river post the TSF4 incident, as well as a description of the social and environmental aspects. This report will be finalised as the work programme progresses.

TSF4 and production update

As previously announced, processing of ore recommenced at 50% capacity on 2 October 2020. Following a trial period of just over one week, processing was increased, and the flotation plant has now been broadly operating at full capacity for almost three weeks. Site management is satisfied with the engineering improvements made to TSF4, in line with the designer and Knight Piésold's recommendations.

Knight Piésold has discussed with the CAML Board the causes and contributory factors to the TSF4 incident, concluding that the leakage occurred due to water ingress along the composite liner interface through to the dam resulting in a loss of strength and the subsequent subsidence of the dam crest. CAML management has worked closely with the designers, Knight Piésold and the local authorities to address the contributory factors and it is anticipated that a report comprising their findings will be finalised in Q1 2021.

COVID-19 update

As announced in September 2020, there continues to be no new cases of COVID-19 on site at Kounrad, although recently there has been an increased number of cases at the Sasa mine and in the local town of Makedonska Kamenica. The teams remain vigilant at both sites, and Sasa is managing the current situation through regular testing of employees and contractors, together with continued focus on established COVID-19 site procedures.

CAML interim dividend

Given the positive progress made in resolving the TSF4 issue, commencement of the river remediation programme and the return to full capacity of Sasa's processing facilities, the CAML Board is now in the process of reviewing the cashflow impact of the incident with the intention, if possible, of reinstating the 2020 interim dividend during Q4 2020.   

Nigel Robinson, Chief Executive Officer, commented:

"The Sasa site team has made good progress advancing our river remediation plans and we have worked closely with the local mayor and authorities to maintain their support during this challenging period. We are pleased that we have managed to return the mine to full production following the TSF4 incident. We look forward to updating shareholders on our 2020 interim dividend in the near term."

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Note to editors:

Central Asia Metals, an AIM-listed UK company based in London, owns 100% of the Kounrad SX-EW copper project in central Kazakhstan and 100% of the Sasa zinc-lead mine in North Macedonia.

For further information, please visit www.centralasiametals.com and follow CAML on Twitter at @CamlMetals and on LinkedIn at Central Asia Metals Plc