1st phase – development of the Kupol, Mayskoye and Valunistoye gold deposits
Exploration of the deposit was held, reserves’ counting was conducted and the mine that meets international standards with allcomplex of supporting infrastructure (including airfield) was constructed at the Kupol deposit in a short space of time. Exploration of the deposit started in 2008.
Since June 2008 to January 2011 there had been mined 60 tons of gold and 621,7 tons of silver. According to the results of 2010 Chukotka takes the second place for gold extraction among the subjects of the Russian Federation thanks to ZAO Chukotka
Mining & Geological Company. The Company’s share in total production of gold on the territory of the region made up 80% in 2010.
The Mayskoye deposit is one of the five largest gold deposits in Russia. Development’s feasibility study expects production of 850 thousand tons of ore per year with underground mining and its flotation at the industrial zone of the deposit with the following delivery of the concentrate to Amursk for its subsequent processing at the plant of pressure leaching. In May 2010 construction of a concentration plant started at the deposit. Total expenditures for company’s construction are estimated to be 170 million dollars. In addition 140 million dollars will be invested during the operation of the enterprise, starting with 2013, mainly in general mining works and technical reequipment. The first ore will be produced in the end of 2010 and the plant is planned to be implemented in the first quarter of 2012. Dispatch of the first batch of the concentrate in Amursk and receipt of the first gold are expected to be in the fourth quarter of 2012. Polimetal, OJSC plans to reach full production capacities both in ore production and its processing during 2013. In perspective an annual level of gold mining will comprise up to 6-10 tons.
The Valunistoye deposit is developed by “Valunisty Mine”, LLC which is the oldest and largest gold-mining company in the region. A concentration plant with a capacity of 200 thousand tons of ore per year and two opencast ore mines function in the site. More than 1 ton of gold are permanently produced here. In future it is expected to produce up to 1. 2 tons annually.
2nd phase – exploration of the Dvoinoye gold deposits, the Vodorazdelnaya property
In 2010 Kinross Gold Corporation acquired the Dvoinoye gold and ore deposit and Vodorazdelnaya property. The deposit is planned to be explored with underground mining and ore to be transported for processing to the Kupol deposit’s gold extracting plant. The Company is planning to prepare feasibility study and receive permissive documents, including engineering and basic research during 2011-2012.
The Dvoinoye deposit exploration will make it possible to use infrastructure which has already been at the Kupol deposit more efficiently and will give an opportunity of including of ore from the Dvoinoye deposit with higher gold content in processing.
312 million rubles (funds from the federal and regional budgets, ZAO Chukotka Mining & Geological Company) are sent for construction of “Komsomolskoye – Mayskoye” overhead power line of 110 kV. The line’s implementation was 2010.
765.3 million rubles (funds from the federal budget, “Prospectors’ artel of Chukotka”, LLC and extrabudgetary sources) are sent for construction of “Valunistoye – Egvekinotskaya SDPS” overhead power line of 110 kV. The line’s implementation was 2008.
3rd phase – the Baimskaya ore zone’s deposits exploration
Exploration works carried out at the Peschanka deposit in 2009-2010 by Baimskaya Mining Company, LLC and search and evaluation works such as geochemistry and geophysics in the framework of the Baimskaya ore zone (the Peschanka deposit is in its center) made it possible to estimate its resource potential in 27 million tons of copper and 1600 tons of gold. In 2011 about 80% of industrial reserves of the “Peschanka” deposit (5-6 million tons of copper and 250-300 tons of gold) – one of the deposits of the Baimskaya ore zone – will be booked on the balance sheet. Since 2014 to 2018 assessment of the whole Baimskaya ore zone will have been completed and its total reserves and resources will have been calculated. In perspective construction of a large mining complex is seen on the basis of the Baimskaya zone’s deposits and in the first place on the Peschanka one.