Preliminary geological exploration of the Glavnaya ore zone has been completed over its entire length (6.0km). Exploration trenches and drill holes have confirmed and extended the previous reserves estimates in the central Tokur and Innokentevskiy deposit areas.
It has been established that economic mineralisation within this zone is concentrated in ore-columns associated with gold-bearing quartz veins. The longest such section (1.5km) is located at the Tokur deposit itself. It has a typical gold grade of 2.2g/t over a thickness of 8.5m. At depth the grade gradually increases and at 150m is 3.6g/t over 5m.
At the Tokur mine, reserves remain in the previously worked quartz veins above the Glavniy fault, and higher grades than expected (up to 11g/t) were found at the fault itself. Total reserves at the Tokur mine itself are now estimated at 1,350,000oz contained gold, of which 100,000oz are in the uppermost 50m and accessible to open pit extraction.
In 2006 33,000m3 of trenching was completed along the Glavniy fault. By the end of 2007 it is envisaged thta a final reserves and resources report will be completed. In the Ekimchanskaya area, trenching is continuing in 2007.
At the request of the Board of the Company, an independent resource estimation report was undertaken on the Tokur deposit. This report supports the previous resource estimation undertaken by the Group’s Chief Geologist. (Please find a summary of the report below).
