Kazakhstan-focused European Minerals says its £75 million Varvarinskoye gold and copper project should start production in October.

Fresh from addressing a mining conference in Canada, Tony Williams, chairman of AIM- and Toronto-quoted European, argues ‘the market is waking up’ at last to the possibilities of Varvarinskoye. This deposit is claimed to be capable of producing 150,000 ounces of gold and 25 million lbs of copper for 17 years on present reserve estimates of 2.2 million ounces of gold and 250 million lbs of copper, and Williams maintains these reserve estimates will increase.

The project’s grades are comparatively low, at 1.5 grams of gold per tonne of ore and 0.5 per cent copper, but expected costs are low, too, well below current metal prices. Early last year, the company arranged a finance package, including a near-£30 million share issue at 563p, plus warrants at 77p.

That helped lift the shares, which had fallen below 28p in April 2005, to 68p in February last year. Since then they have drifted back, though they are now showing signs of stirring after Williams banged the drum.

At 55p, up 2p this morning and valuing the company at £153.5 million, they might repay a strong-nerved punt.

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