Nordgold gets new exploration and mining license in Buryatia
MOSCOW. June 23 (Interfax) - Nordgold OJSC Buryatzoloto subsidiary has received a license to explore and develop the Onot-Kitoyskaya gold area in the Russian internal republic of Buryatia, Nordgold said in a statement.
The Onot-Kitoyskaya area is adjacent to Nordgold's existing license areas of Buryatzoloto, which operates two mature underground gold mines - Irokinda and Zun-Holba. Total resource potential of the area is estimated at 50 tonnes of gold in P2 Russian classification resources and 105 tonnes in P3 resources.
Buryatzoloto, which is 84.9% owned by Nordgold, paid 18.150 million rubles ($500,000) for the license.
"Nordgold has made considerable progress in extending its resources base, in both new geographies and in projects adjacent to existing Nordgold mine sites. In June alone we have announced an investment in Northquest which owns the promising Pistol Bay project in Canada, as well as an investment in Goldrush Resources which owns the Ronguen Gold project which sits alongside our Bissa mine. We also continue to look for a geologically promising exploration areas located next to our mines in Russia and this license is perfectly aligned with that strategy," said Nikolai Zelenski, Chief Executive Officer of Nordgold.
"In 2013 we acquired the Zhanokskaya deposit, which is adjacent to our Irokinda mine, and now we have won a license for Zun-Holba satellite deposit Onot-Kitoiskaya. Together they offer strong potential to increase reserves and life of mine for both of our Buryatzoloto mines. We remain committed to identifying new projects to which we can bring our proven development expertise, which will provide long term value to Nordgold," he said.
Nordgold operates mines in Russia, Kazakhstan, Burkina Faso and Guinea. The company also has an option to 50.01% of the Montagne d'Or project in French Guiana. Nordgold was spun off from Russian steelmaker OJSC Severstal in January 2012. Steel magnate Alexei Mordashov is Nordgold's principal beneficiary with a stake of 84.4%, and the free float is about 15%.
