In April 2004 the Group acquired 90% of the share capital of OJSC Yamalzoloto for a total consideration of US$10.4 million. On acquisition the licence area covered 11 anomalies, one of which, Novogodnee Monto, was well explored and had significant geological data collected on it.
In September 2005 Peter Hambro Mining Plc announced that it had subscribed for 74.9% of the shares of OAO "Yamalskaya Gornaya Kompania" ("YamalMining") which owns a number of attractive assets in the Yamal Nenetsk Autonomous District as well as the 10% of OAO "Yamalzoloto" not already owned by the Group.
The Group's Yamal exploration licences cover an area of approximately 525km2, stretching 200km along the Eastern side of the polar Urals in the Yamalanenetsky Autonomous Region. The Group's licence covers the area located in the middle of the region which includes the Novogodnee Monto and Petropavlovskoye deposits.
There are however many other exploration targets and mineral deposits in this licence area. A few kilometres west of Novogodnee Monto lies the Zapadnoye chromite deposit, held by the Group (with 6m tonnes of chromite reserves). To the north and south there are a variety of prospects for gold, Platinum Group Metals (PGMs), and base metals, actively being explored by the Group. In the Yun-Yaga area, around 50-70km north-east of Novogodnee Monto, the Group is carrying out exploration for iron and manganese that is both on behalf of and fully funded by the Russian Government. Elsewhere, active exploration continues on the Ozernoye, Pyatirechenskaya, Rudniye Gorki and Yarshor-Laptayega areas.
An independent review by SRK of the potential of the Toupugol-Khanmeishorsky licence area and the status of the Novogodnee Monto stated that the licence area represents a high quality exploration asset with significant potential, and that the current work being carried out is justified and the project clearly has the potential to support an operating mine. The report concluded that "the two licence areas combined represent a valuable addition to the Peter Hambro Mining Plc portfolio and that it is reasonable to expect that the Feasibility Study at Novogodnee Monto, combined with ongoing exploration of the Toupugol-Khanmeishorsky will in due course confirm the existence of ore grade mineralisation containing in excess of five million ounces of gold".
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.
