Novogodnee Monto
In 2006 work on the Novogodnee Monto deposit consisted of the preparation of feasability study documentation for mining. During the first half of 2007 the feasability study was finalised and confirmed. The economic study to define production reserves at Novogodnee Monto has been confirmed by GKZ and, with the Petropavlovskoye exploration programme near completion, a project to develop both mines simultaneously is under way. During 2006 the Group carried out a total of 50,000m of core drilling and 73,000m3 of trenching on other exploration assets in the region.
Reserves and resources confirmed by GKZ at Novogodnee Monto include:
- magnetite ore: 4,941,300t with iron content 42.64% and gold 1.02g/t
- gold-sulphide-quartz ore: 344,200t with gold grade 3.1g/t
- high quality building stone: 15,204,000m3
Only 80% of explored reserves of magnetite ore and 58% of the gold-pyrite-sulphide ore were included in the designed pit (though this is subject to revision at the detailed mine planning stage).
Petropavlovskoye
The Petropavlovskoye deposit (1km west of Novogodnee Monto) has been explored by drilling to 150-320m depth along a 2.7km north-south strike length. Mineralisation is hosted by up to 300m thick zones of beresite-like metasomatite with pyrite, chalcopyrite and galena (sulphides up to 10-15%, Au 0.5-2.5g/t). These zones are intersected by transverse steeply dipping quartz veins 0.5-12.0m thick containing much higher gold grades (typically 6-12g/t, but in places up to 90g/t). A metallurgical study of two laboratory samples of Petropavlovskoye ore indicates that preliminary flotation with sorptive cyanidation of the flotation concentrate is the recommended processing route, with estimated gold recovery of 82% and silver 61.5%.
Toupugol-Khanmeishorsky
Within the Toupugol exploration area (near the western margin of the licence area, 5km west of Novogodnee Monto), exploration works in 2006 discovered a completely new area of lenses of magnetite ore similar to that at Novogodnee Monto; so far of unknown size, and with intersected gold grades up to 2.3-6g/t. Similar grades are seen in all of the magnetite ores found so far in this area.
In 2006 drilling on the Petropavlovskoye deposit and Toupugol-Khanmeishorsky flanks included 40,500m of deep drill holes plus 11,700m3 of trenching within the licence area, including the opening of a wide shallow trench to expose the ore body and confirm the continuity and style of mineralisation (including east-west quartz "ladder" veins accross the north-south trend of the ore body, with visible high grade gold).
Ozernoye
This exploration area lies about 70km south-west of Novogodnee Monto, and consists of a layered ultrabasic body (Bushveld-style) containing three reefs up to 20m thick of disseminated sulphide/magnetite ores with polymetallic (PGM-gold-Cu/Ni/Co/Fe) mineralisation. These have been partially explored and initially evaluated to Russian category P1 in less than 1km of the outcrop length with a remaining 5km to explore. Grades found so far include around 1.7g/t total precious metals and around 1% total base metals (excluding iron).
Rudniye Gorki-3
The Rudniye Gorki-3 prospect (about 30km south west of Ozernoye) has been known since 1970 for its epidote-magentite skarns. These form two ore bodies of 7-30m estimated thickness and 135-150m estimated length. The ore consists of massive magnetite skarns with overlying disseminated sulphide mineralisation (chalcopyrite and pyrite). This is being explored for copper and gold. Rhenium enrichment has also been reported. Work carried out in 2006 has confirmed the copper (more than 1.0%) and gold (0.5-6.4g/t) in this ore. Additionally, eight further metasomatic skarn zones 80-100m wide and 1,200m long have been identified.
Yarshor-Laptayega area
The Yarshor-Laptayega exploration area is a north-east trending thrust zone with associated mineralisation (Au, PGM, Mo, Hg). The area is 10-40km north-east of Novogodnee Monto and lies along a 30km-long zone of thrusting in Ordovician and Lower Proterozoic rocks. Previous studies indentified thick (up to 500m) and long sections of quartz-sericite metasomatites with disseminated sulphides and gold. Microscopic studies showed the presence of PGMs. In 2006, this structure was cut by trenches and lines of shallow drill holes. These intersected 50-130m zones of beresite-like alteration of black slates with sulphide content (pyrite, chalcopyrite, pyrrhotite, and galena) up to 25% and gold. Exploration is scheduled to continue here in 2007.
Pyatirechenskiy
The Pyatirechenskiy deposit to the south-west of Ozernoye, is less well explored, but similar to Ozernoye, with PGM, nickel and cobalt in a layered ultrabasic complex, as well as very different mineralisation associated with quartz sulphide veins.
Yun-Yaga
North of Yarshor-Laptayega; prospective for iron and manganese. Exploration by the Group here is fully funded from the Russian Federal budget.
Zapadniy
A high-grade chromite deposit within an ultrabasic complex, west of Novogodnee Monto.
Sibileiskiy
An exploration area in the far north of the Group's exploration licence. So far only low-grade gold mineralisation has been found here.
