An extensive development programme is underway at Malomir with infrastructure construction and confirmation exploration (drililng, trenching and trial mining). Between 2005 and 2007, 47km of drilling and 600,000m3 of trenching has been carried out and 43,300 core samples and 22,200 trench samples taken. There are currently five drill rigs operating on site.
In 2007 it is planned to carry out exploration of all three ore deposits to establish reserves and resources for GKZ approval. An additional 5,000m of drilling and 5,000m length of trenching are to be completed on the central Malomir deposit and on the Flanks.
It is planned to complete exploration on the main Malomir deposit in 2007 and to start the preparation of documentation to submit to GKZ for reserves and resources approval. This will include infill drililng in order to meet the GKZ requirements to establish reserves in order to start mining operations. The hydrogeological, metallurgical, and geotechnical studies and topographic survey are also expected to be completed as well as exploration for nearby sources of building materials.
Exploration will continue on both the Quartzite and Ozhidaemoye zones and also two bulk samples of 300kg each will be collected in 2007 from the Quartzite zone for metallurgical study.
Tailings from abandoned placer operations in the Malomir valley will also be tested for easily extractable gold.
The planned Malomir mill is expected to begin operating in 2009. Total capital expenditure requirements for the mill and associated infrastructure and mining operations are estimated to be US$112m.
