Malomir is located in one of the oldest and richest gold producing areas of the Amur Region.  It is hosted by Palaeouncesoic black shales, with a similar geological enviroment to the vast Sukhoi Log deposit in the Irkutsk region.  V.A.Buryak, the prominent Russian geologist, in a State comissioned report, reported that Malomir is of a large gold-platinum black shale mineralisation type.  The deposit also has  silver, platinum and palladium credits.   

The Malomir deposit was originally discovered during an exploration programme in 1966–70. It occurs within a meta-sedimentary sequence including black shales, and there are indications of localised enrichment in platinum-group metals. The principal mineralisation of the main Diagonalnaya zone occurs in an imbricate zone (a set of sub-parallel fracture belts) above the main Malomir thrust fault, which dips gently to the north-west. Mineralisation within these fracture belts is continuous, though there are alternating high-grade and low-grade areas. There are basic to acid igneous dikes which appear to act as controls on the mineralisation. Reported gold grades within lenticular mineralised sheets in the Diagonalnaya zone are typically between 1 and 5 g/t over thickness of up to 17 m: however, in view of the continuity of mineralisation, at a cut-off grade of 0.5–0.7 g/t there is a single (up to 150 m) ore body – a marginally lower cut off grade increases reserves dramatically. Gold is mainly fine-grained, occurring as free gold with quartz, and minor sulphides. Metallurgical studies carried out so far on the oxide ore suggest that a gravitational/ flotation separation method will yield good recoveries.

Geological considerations suggest also that there is a likelihood of mineralisation along bounding steep faults that cut the deposit on its northern and western sides, provisionally named the Malomirskaya zone and the Stoybinskaya zone respectively.