Novogodnee Monto
Detailed exploration and metallurgical testing are continuing, and during 2005 a full TEO (prefeasibility study) is to be prepared, with plans to develop an open pit mine. Since open-pit mining can operate with a lower cut-off grade than the underground operation envisaged by previous owners, it should be possible to increase the total mining reserves accordingly. As soon as possible after completion of the TEO, it is planned that preparation for the construction of the plant will begin in order to minimise the time for the mine to come into operation. Likely locations for the mill will be close to the railway line which crosses the south-western corner of the licence area.

Drilling continues in 2006 with three rigs in operation, to infill the central area and to extend the reserves estimation to the north and south.  It is expected that magnetite zone reserves at Novogodnee Monto will be confirmed in September 2006. 

In February 2007 it was reported that Feasibility studies on Novogodnee Monto and Petropavlovskoye are nearing completion and an investment decision is expected in the fourth quarter of 2007.


Petropavlovskoye deposit
In 2007 a programme of transverse drilling will intersect the steeply dipping quartz veins in order to provide sufficient data to include these in the resource model.

Other areas
Exploration is scheduled to continue on the various targets, with emphasis on those which can potentially be added at an early stage to the Novogodnee Monto mining licence.

More intensive exploration of the Ozernoye polymetallic prospect is scheduled to be undertaken in 2007 across the whole area of the ultrabasic outcrop.  On other exploration areas drilling and trench exploration will continue in 2007.