Stewart R. Wallace — 1919–2009 - Society of Economic Geologists

JULY 2009 No 78 SEG NEWSLETTER 49
of investments into the JV Zoloto Taigi.
The companies intend to sell JV gold
licenses in Siberia for US$100M. The
main asset of JV is the 3-Moz Veduga
gold deposit in Krasnoyarsk.
Meanwhile, Metalloinvest still did not
fully pay the government its subscription
bonus for the 2008 Udokan tender.
Buryatzoloto (controlled by Severstal)
has waived its right to the exploration
and mining license on the Chaiskoyoe
sulfide Cu-Ni deposit in the republic of
Buryatiya. In February 2008,
Buryatzoloto won the Chaiskoye tender
with the winning bid of US$10.6m. The
company wrote off the initial subscription
bonus and has declined to pay the
final subscription. The resources of the
Chaiskoye deposit include 626 kt Ni
and 142 kt Cu.
SIBERIA, RUSSIA
After a three-month break, the Chinese
company LLC Lunsin intends to continue
work on the Kyzyl-Tashtyg polymetallic
deposit in the republic of Tuva.
The main deposit components are zinc,
lead, copper, barium, sulfur, with associated
components of gold, silver, cadmium,
selenium. The B+C1+C2 category
reserves are 12.920 Mt, including 2 category
2.078 Mt of copper ore and C1
category 6.259 Mt of pyrite ore.
Kola Mining is in the process of
acquiring the Bogunayevskoye gold
deposit for US$1.8M. Kola must pay the
seller approx. US$700,000 and assume
existing loan responsibilities in the
amount of US$1.1M, which must be
repaid by October 2010. Kola is planning
to process tailings from an old
mine at a local beneficiation plant.
According to the Soviet-time data,
Bogunayevskoye resources are between
5.8 and 9.4 Mt of ore with average
grades of 2 to 10 g/t Au. Forecast
resources (P category) are estimated at
0.65 to 1.17 Moz Au.
FAR EAST, RUSSIA
Polymetal, as part of a consortium of
Russian investors, has acquired
Maiskoye deposit in Chukotka from
Highland Gold Mining for US$105M.
Highland has reportedly spent
US$200M. The 2002 feasibility study,
approved by the State Committee for
Reserves (GKZ), estimated commercial
reserves of 1 + 2 category at 22.7 Mt of
ore with average grade of 10.9 g/t Au
for 8 Moz Au.
Silver Bear Resources Inc has identified
31 Moz Ag at 508 g/t at the
Mangazeya silver deposit in Yakutiya.
Reserve calculation was carried out by
Wardrop Engineering applying a
long-term Ag price of US$10.5/oz. In
2009, Silver Bear plans to invest C$12M
to drill approx. 10,000 m.
Polyus Zoloto presented a revised
development plan for the Natalka
deposit in Magadan. Natalka should
reach the full annual production capacity
of 1.286 Moz Au by 2022. In the
past, this capacity was scheduled for
completion by 2013. In 2010, Polyus
Zoloto plans to raise US$1billion for
mining purposes via equity issue and
debt. In 2013, the company plans to
build a plant of smaller capacity 10 Mt,
to produce between 680 and 1,150 koz
Au per year. After completion of the
Ust-Srednekan hydro-power station
between 2017 and 2021, Polyus Zoloto
plans to produce 1.2 to 1.4 Moz Au.
Further increase in capacity is expected
from 2022 to 2041, when annual production
would reach 1.5 Moz Au. After
2013, the company will need to invest
US$900M, generated from the Natalka
production cashflow. The new plan for
Natalka envisages a step-by-step development
to ease the effect of the financial
downturn and the lack of energy
generating capacities in the region.
Polymetal has received first JORC
resource evaluation figures for the
Birkachan and Oroch deposits in
Magadan. These results were audited
by SRK Consulting UK Ltd. The indicated
and inferred resources for the
Birkachan deposit are 17.51 Mt ore,
including 1.378 Moz Au and 6.629Moz
Ag, with 2.4 g/t Au and 11.9 g/t Ag. The
indicated and inferred resources for the
Oroch deposit are 1.93 Mt ore, including
301 koz Au and 10.341 Moz Ag,
with 3.3 g/t Au and 167 g/t Ag. Also in
Magadan, Polymetal has bought the
Quartzevy mine (mining license for the
Sopka Quartzevaya deposit). As of
2006, the approved C1+C2 category
contained 1.988 Mt ore, including 0.65
Moz Au and 18.4 Moz Ag. This project
has been acquired for 10 million shares.
Polymetal is planning to use the
Kubaka plant to process the ores from
all these 3 deposits.
Arlan continues work on the Pavlik
deposit in Magadan and is planning to
approve resources of not less than 6.4
Moz Au with the Russian GKZ. At present,
C1+C2 category approved in the
1950s amounts to 1.8 Moz Au, with 2.8
g/t Au. Last year the company invested
US$9M in exploration and drilled over
30,000 m. This year the company
intends to drill additional 16,000 m.
Fortress Minerals Corp has commenced
exploration drilling on the
Svetloye deposit. In 2009, the company
plans to focus on the Amy zone with
NI43-101 resources of 467 koz Au, grading
2.43 g/t Au. Amy is one of the nine
zones on the deposit. The expected
resources of the deposit are 1.428 Moz
Au @ 2.21 g/t Au.
KAZAKHSTAN
Kazakhstan, the world’s third largest
uranium producer, has opened two new
uranium mines in April 2009 and plans
to increase output to 12,00 0t in 2009.
In May 2009, Kazakh authorities started
investigation into legality of the deals
preceding these developments.
Uranium One’s Kazakh assets were
acquired in November 2005 from a
group of Kazakh investors by UrAsia
Energy Ltd., which became a subsidiary
of Uranium One in April 2007.
UrAsia paid US$75M for its 30% interest
in Kharasan uranium project and
US$350M for its 70% interest in the
Betpak Dala joint venture with
Kazatomprom, which operates the
Akdala and South Inkai mines. Since
November 2005, Uranium One has provided
loans of more than S$119 million
to its Kazakh joint ventures to assist in
the development of these assets.
In parallel, Kazatomprom
announced the development of the Irkol,
Semizbay, and Zhalpak deposits in
compliance with strategic agreements
concluded with China National Nuclear
Corporation (CNNC) and China
Guangdong Nuclear Power Corpora -
tion (CGNPC) in Kyzylorda oblast.
Cigma Metals Co has reported
unaudited 4.88 Moz Au equiv @ 0.7 g/t
Au eq from the Beskauga deposit in the
14,000 km 2 Dostyk license in Northern
Kazakhstan. The exploration results
revealed 2.38 Moz Au @ 0.34 g/t; 10.34
Moz Ag @ 1.5 g/t; 368.5 kt Cu @ 0.17%
and 30.6 kt Mo @ 0.14%, using cutoff
grade of 0.13 g/t Au. In 2008, Cigma
Metals drilled 4,700 m.
Central Asia Resources Ltd has
reported an increase in resources of the
Kepken deposit from 8 to 11 Mt @ 1.16
g/t Au. Total Au in ore has increased
from 294 to 411.4 koz.
KYRGYZSTAN
Kyrgyz government has signed parliament-ratified
agreement on the Kumtor
gold mine with Centerra Gold Inc and
its founder Cameco Corp. In accordance
with this agreement, the Kyrgyz
share in Centerra Gold will increase
from 29.3% to 33%. In addition to this,
Centerra will make a single payment,
in the amount of US$22.4M, to
Kyrgyzstan and will
pay profit tax of
to page
14%, including a 1% 50 ...
EXPLORATION REVIEWS