Oxus said that, under revised plans for its 50%-owned Amantaytau Goldfields project, it expects to raise annual production at the site to 160,000 ounces of gold by 2010.

Output will comprise 60,000 ounces from the first, open-pit stage of the project and 100,000 from the second, underground phase.

Financing for the second underground phase will be scaled back under plans that "envisage (its) accelerated development ... a very significantly reduced capital cost," using existing mine shafts rather than building new declines, Oxus said in a statement.

Oxus said it knew of no specific reason for recent falls in the company’s share price and "continues to work closely with the Royal Bank of Scotland and other banks".

The stock, which has lost around 90 percent of its value over the last year, was up 5.5 percent at 4 pence by 0806 GMT.

Funding talks are also under way with an unnamed Asian contracting and financing group, it said, without giving financial details.

CEO Richard Wilkins said the company has "taken measures to cut costs, and we will continue to do so as appropriate."

"Oxus has cash in the bank and ... we remain confident that (our) reserves and resources ... will enable the company to develop a very significant and profitable business."