License Title: Ozernovskoye ore field, Kamchatka region, Far East Russia.
End of 2010: 1.2M Oz Au (37 t) contained at average grade of 2 g/t (indicated & inferred), based only on the most explored parts of two zones out of total five zones. Independent NI 43-101 compliant Report – Technical Due Diligence & Resource Estimate.
January 2012: The NI 43-101 update reported completed in the beginning of 2012 based on exploration results of 2011 showed total resources volume (Indicated & Inferred) at ~3.0 million Oz of gold with average grade at 2 g/t.
Sept 2012 Resources: ~3.35 M Oz Au (104.1 t) contained at average grade of 2 g/t (Measured + Indicated + Inferred). The total upside potential of the Title is likely to exceed 8 million Au Oz contained based on detailed geophysical research.
BAM site Khomut site Promezhutochniy site TOTAL
NI 43-101 – Measured, K Oz 459 459
NI 43-101 – Indicated, K Oz 520 956 384 1,860
NI 43-101 – Inferred, K Oz 169 484 375 1,028
NI 43-101 – M&I&I, K Oz 1,148 1,440 759 3,347
Presence of sporadic rich and bonanza ore pockets (with grades over 100 g/t), which should result in higher ROM grade (such grades were not considered in the above NI Resource Estimate as they were appropriately leveled down).
- Expected resources: more than 6 M Oz according to geophysical researches and previous exploration data related to other field zones.
- Technology: Open pit mining (strip ratio waste to ore < 1.5 m3/t), CIL technology (Au recovery 90%).
- Management: Company Management & Senior key stuff with up to 25 years experience in gold sector.
- Quick production start: an opportunity to build pilot-scale open pit & processing plant within two years based on high-grade near-to-surface ore; projected annual FCF is about pit & plant total CAPEX.