This area lies at the northern end of the Urals, on the Yamal peninsula adjacent to the estuary of the River Ob. On acquisition the licence area covered eleven anomalies, one of which, Novogodnee Monto, had significant data. Work to date suggests that Novogodnee Monto may be reclassified as an open pit mineable deposit and that the other anomalies represent very similar style and quality assets. The licence area is well serviced with infrastructure due to its location in the primary oil and gas region of Russia.

Mineralisation in the Novogodnee Monto deposit and surrounding areas occurs principally in skarns (metasomatically altered rocks) associated with igneous intrusions of Devonian-Carboniferous age within a Silurian-Devonian volcanic and sedimentary sequence. There are two main types of mineralisation: massive magnetite-bearing ore bodies and quartz/carbonate/sulphide stockworks.