IFG Capital Partners and the State Committee of the Republic of Uzbekistan on Geology and Mineral Resources (GOSCOMGEOLOGY) have signed an agreement to undertake a feasibility study on the development of the Yakhton tungsten deposit in Uzbekistan.

Located near the town of Urgut in the Samarkand region of Uzbekistan, the Yakhton deposit has estimated reserves of 22,147t of tungsten trioxide.

IFG will also organise the industrial development of the deposit if the results from the study are positive.

“We are confident that this has the potential to become a world class tungsten operation.”

Expected to commence immediately, the first phase of the study will include verification drilling, metallurgical test work and the design of a processing facility.

The verification drilling will be carried out to confirm existing reserves, while the test work is designed to determine the optimal ore processing scenario.

GOSCOMGEOLOGY chairman Bobir Islamov said: “We are confident that this has the potential to become a world class tungsten operation. This agreement marks another major step in the accelerating growth of outside investment and expertise into Uzbekistan.”

IFG noted that the development of Yakhton will pave the way for building a tungsten cluster in the country through the consolidation of several low-margin deposits into an industry leader built around a processing facility.

IFG Metals and Mining managing partner Olga Ponkratova said: “We know the vast potential that Uzbekistan offers in metals and mining space and we are pleased that our expertise has been recognised by the Government as their chosen partner to develop such a great opportunity.

“We believe that this agreement will form the framework for future cooperation with GOSCOMGEOLOGY and will be a major stepping stone of our programme to make Uzbekistan not only a world-class tungsten producer but also an attractive investment destination.”

The investment firm is focused on Uzbekistan and other Central Asian markets, offering business and financial advisory services as well as metals and mining expertise.