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17 March 2020
Elkon MMC Get License for Geological Survey, Exploration and Gold Production at Sovinoye Deposit
The auction took place in the administrative center of the north-eastern region, the city of Anadyr; the license cost is RUB 24.2 million. The proven estimate of the deposit inferred resources is 10 tons of gold (P1 category with an average grade of 10 g/t). The first stage of deposit development includes valuation and exploration. The project will be drafted by the end of 2020.
«Greenfield deposit development is an ambitious task, but ARMZ has all the necessary competencies in the field of solid mineral production — from geological exploration to facility decommissioning. At Sovinoye, we are dealing with free-milling and shallow-lying ores, which allows us to use the open-cut mining and makes the project very promising economically. At the same time, we will be able to evaluate the full potential of the deposit only after large-scale geological survey,» emphasized Vyacheslav Galaktionov, Director General, Elkon MMC.
For reference:
The Sovinoye deposit is located off the coast of the Chukchi Sea within the Iultinsky District of the Chukotka Autonomous Region. The deposit was discovered in the 1970s and is an element of the gold-bearing zone, where over 30 deposits of placer gold and 3 ore fields, including over 40 points of gold ore mineralization and occurrences, have been discovered. Ore-grade gold mineralization parameter estimation and reserve calculation were carried out using the results of prospecting and valuation of 1987-1995 and geological exploration of 2006-2008, according to the calculation the inferred reserves and resources of C2+P1 category gold with a cut-off grade of 0.5 g/t are 100 tons.
