OREANDA-NEWS. On January 26, 2009 Oxus Gold PLC issued a statement in response to the share price fall in recent days, assuring investors it is not aware of any specific reason for this, reported the Official website www.investuzbekistan.uz.

It confirmed its 50 percent owned Amantaytau Goldfields joint venture (AGF) is on track to sell approximately 60,000 ounces of gold from its ongoing gold and silver open pit operations by the end of the fourth quarter 2009.

The Company has cash in the bank and will continue to receive repayments from AGF's ongoing operations against approximately USD 30 million of shareholder loans advanced to AGF by Oxus.

Chief executive Richard Wilkins said: "We remain confident that AGF's reserves and resources, and production potential from the Phase 2 expansion, will enable Oxus to develop a very significant and profitable business. Discussions will continue in both the western and eastern financial markets, and within Uzbekistan, to ensure that gold production from the sulphide ores will commence during the first half of 2010."

The accelerated development of Phase 2 is expected to produce approximately 100,000 ounces of gold annually by 2010, increasing AGF's production to an estimated 160,000 ounces annually, prior to completion of the final stage of Phase 2 which would further increase AGF's production to over 250,000 ounces annually.

Negotiations have also commenced with a major Asian contracting and financing group, with a view to concluding a cooperation agreement to develop and finance the underground sulphide project, Oxus added.

The company recognises the difficulties currently facing the international financial sector and continues to work closely with the Royal Bank of Scotland and other banks in respect of the proposed finance for Phase 2.