The licence area, located in the Buryat Republic, was acquired by the Group in April 2006.

Preliminary geophysical and geochemical surveys have identified two areas of interest in the Talikitskaya area:

·                    Talikit zone. Initial trenching has indicated the presence of mineralisation. The presence of beresitised zones has been confirmed, though their gold content is low.  In 6 holes, over a width of 60m, a mineralised interval has been identified, mostly with low grades, but with one hole finding 22.6g/t gold.

·                    Zoltny zone.  This is an area to the south-east of Talikit.  Based on the size and quality of mineralisation, it is believed to be a better prospect than Talikit.  It contains quartz veins with pyrite and chalcopyrite, and associated silicification.

In both the Talikit and Zoltny areas, exploration is limited by access to the area, which is difficult. According to figures prepared in accordance with GKZ, resources in the two areas together are forecast to be approximately 60 tonnes of contained gold.