OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, today announced an agreement with international engineering company Knight Piésold Consulting to prepare a Feasibility Study for the mining complex on Natalka deposit in the Magadan region. The license holder for Natalka is OJSC Matrosov Mine, a subsidiary of OJSC Polyus Gold.
The Pre-Feasibility Study for the project will be prepared within the coming six months in consultation with the engineers of Knight Piésold Consulting. The bankable Feasibility Study preparation will commence at the same time and will take approximately 18 months. The results of the ore tests conducted by McClelland Laboratories in 2006 will be used for the Feasibility.
Commenting on the event, CEO of Polyus Gold Pavel Skitovich said: “The construction of a new mine at the giant Natalka deposit is a major investment project of Polyus Gold. The involvement of international experts in the project is a guarantee that this large scale mining complex will be constructed in compliance with the highest industry standards and the most state-of-the-art technologies will be applied”.
Note for editors
Natalka deposit is located in Tenkinsky district of Magadan region, in the Omchak river basin, 450 km. to the North-West from Magadan. The deposit was discovered in 1944. In 1945, underground mining started at the deposit. The mining was stopped in May 2004 as the production was not viable anymore. A large-scale exploration programme, aimed at additional exploration of the deposit’s flanks and deep levels, was done at the deposit in 2004-2006. Natalka reserves in the amount of 1500.8 tonnes (48 m oz) of gold in Russian B+C1+C2 were listed with the State in December 2006.
In accordance with the Strategic Development Plan till 2015, approved by Polyus Gold Board in September 2006, the total investment into Natalka development will amount up to $1.5 billion. The launch of the mining complex is scheduled in 2012.
Knight Piésold is an international group of consulting engineers and environmental scientists providing services to the public and private sectors in the areas of mining, power and water resources. The company offers expertise in geotechnical, civil, structural and environmental engineering, project management, and construction management. To support these services, Knight Piésold has specific technical capabilities that include metallurgy, hydraulic design, geology, hydrology, hydrogeology, geochemistry, and biology.