Yakutia's gold output, the second in Russia

Gold mining and production output in 2006 in Russia decreased by 2.2% in comparison with this in 2005 and became equal to 164.3 tonnes. The gold output decreased by 2.9% (to 147.6 tonnes), and the accompanying and secondary gold production volume increased by 4.4% (to 16.701 tonnes).

The gold output increased the Republic of Sakha (Yakutia), which took the second place for the first time in Russia.

Yakutia's gold-mining profile:

Republic's gold output totals 19.92 tonnes in 2006 (table 14), i.e. the output increased by 6% over the previous year. The output of the primary deposits stands for 11.5% (9.91 tonnes) and that of placer deposits is 1.2% (10.01 tonnes).

See the table:
Production performance of main gold-mining companies in Republic of Sakha (Yakutia)

The GRK Aldanzoloto OJSC (an affiliate of the Polyus Zoloto JSC) is developing the deposits of the Kurnakhanskoe ore field. According to the JORC due diligence dated 01.01.2006 the reserves of the Kurnakhanskaya group of deposits (measured & indicated) totals 203.828 tonnes of gold. According to expert analysis the reserves of the deposit reach 500 tonnes.

The development concept of the company envisages output growth: up to 5.7 tonnes in 2007, 7.7 tonnes in 2008 and 10 tonnes in 2010.

In 2006, The GRK Aldanzoloto JSC gained a license for open and underground development of the Pinigin deposit with the C2 gold deposits of 17.7 tonnes and predicted P1+P2 resources of about 26 tonnes.

The Seligdar Mining Partnership has been involved in heap leaching since 1996. The partnership has been developing the Samolazovskoye and Mezhsopochnoye deposits since 1999 and 2004 respectively. In 2006, the company reached for the first time the gold output of more than 2 tonnes.

In 2006, an affiliate, the Zoloto Seligdara JSC, was set in order to attract extra funding for the Nizhneyakokitsky project. The project is based on the reserves and predicted resources of the Nizhneyakokitskoye ore field (42.7 tonnes of gold with average grade of 1.45 g/t). Commercial production of the deposits is scheduled for 2008.

The Zoloto Seligdara JSC acquired the Ryabinovoye CJSC with the license for development of the Ryabinovskoye deposit (16.6 tonnes of gold). As a result the company will be capable of extracting up to 2 tonnes of gold per year.

In 2007, the Zoloto Seligdara JSC along with the Tekhsnabeksport and Atomredmetzoloto JSCs launched a joint project at the Lunnoye deposit of the Elkonskya group of deposits. According to Tekhsnabeksport data the deposits of 13 of 40 areas comprising the group reach 344,000 tonnes of uranium, while the total predicted resources of the area are rated at 600,000 tonnes of uranium. The ore also contains molybdenum and gold.

The company plans to increase gold output up to 4 tonnes per year by 2010.

The Zapadnaya Mining Partnership OJSC has been holding the license for exploration and development of the Badran deposit rated at 10.8 tonnes of gold since 1997. Operated on the deposit is the modular extraction plant with extraction capability of 100,000 tonnes of ore per year. The plant is shut down in winter. The extraction is of underground type.

The mining partnership is continuing to explore the Badran deposit relying only on its own funds.

The Drazhnik Mining Partnership LLC operates the biggest dredge fleet in the Republic (five dredges). In 2007, the company produced 784 kg. of gold to exceed the target. The 2007 dredge output is planned to be maintained at the level of the previous year.

2006 saw the reconstruction of the processing plant on the Yursky deposit. The works on exploration of the bottom horizons of the Duetskoye deposit are still being carried out.

The Prognozserebro Company (an affiliate of the Buryatzoloto JSC) started the exploration of the Prognoz silver deposit, in 2006. The reserves and the predicted resources of the deposit could total about 10,000 tonnes of silver. 2007 will see the end of exploration works and preliminary technical and economic assessment of commercial production.

The master plan aimed at an increase in gold output in the Republic of Sakha (Yakutia) relays on the three major projects carried out by the Polyus Zoloto JSC. The projects are as follows: the Kurakhansky, Nezhdaninsky and Kyuchussky. The Nezhdaninsky mining-and-processing plant is planed for putting into operation for 2011. The end of the up-rating reconstruction of the Kuranakhsky mining-and-processing plant is scheduled for 2011. The gold output is planned to rise up to 28 tonnes in 2011 and up to 40-45 tonnes in 2020.

// June 16, 2007

Resource: Russia's Gold Mining Industry in 2006