CJSC Gold Mining Company Omchak produces gold through two enterprises in the Magadan Region, Nelkobazoloto and Berelekh, as well as through OOO Noviye Tekhnologii and Zeyazoloto. Nelkobazoloto is the owner of the Shkolnoye underground mine in the Tenkinsky district of the Magadan Region and OAO Berelekh is the operator of a number of alluvial deposits in the Magadan Region.
In 2006 32,800 tonnes of ore were extracted at the Shkolnoye deposit, 29,600 tonnes were processed at the plant and c.9,000 oz of gold were recovered. In 2006 OJSC Berelekh carried out alluvial gold extraction in the Magadan Region on 37 licence areas, totalling more than 1,500km2. It is estimated that Berelekh has on-balance (commercial) reserves for open-pit mining for over six years. In addition, each year Berelekh carries out exploration at the same time as extraction, which is expected to lead to a growth in reserves each year of between 38,000 and 48,000 oz.
The Magadan region, like the Amur region, has been an extremely prolific precious metals province, with production of over 80 million ounces of gold from alluvial and hard-rock mines since the 1930s. Thanks to its long mining legacy, the Magadan region’s infrastructure is well established. Extensive all weather roads link the mining operations to local towns and there is both electricity and coal from local suppliers. Electricity is mainly generated from the upper Kolyma River hydro-electric station and from coal mined near Susuman town as well as from fire heated boilers. The operations within the Omchak Joint Venture are now well established and benefit from competent and experienced management teams.
