Auriant Mining intends to sell Solkokon in 2016

16 May 2016

Swedish Auriant Mining intends to sell gold project Solkokon in the Trans-Baikal region, to increase the production of precious metals in Tardan and end up with a profit in 2016, according to the Company's message. During 2015 the net loss of Auriant Mining totaled USD 21.494 mln, which is 30% higher than a year earlier. "In addition to the production of 1 ton of gold (21.5% growth compared to 2015), the Company plans to provide a positive cash flow by reducing administrative expenses by 40%, as well as the implementation of cost reduction programs and sale of Solkokonasset, which will positively impact on reducing the debt burden," noted in the message. Auriant Mining does not disclose details of the deal on Solkokonu. The Company plans to maintain the production volume of 1 ton of gold in the future. As a result of intelligence on Tardan ore cluster, Auriant Mining intends to ensure the growth of reserves and extend the life of the Tardan deposit. In 2016, the subsoil user also plans to protect about 20 tons of reserves by category C1 + C2 at the field Kara Beldir in Tyva.As earlier reported, Auriant Mining in the first quarter of 2016 increased gold production by 77.7% compared to the same period of last year, to 143.2 kg (4,604 thousand ounces). In particular, the gold-processing gravity plant of Tardan produced 48 kg of gold (1,531 thousand ounces) against 15 kg (472 ounces) in January-March 2015. The Company's projects are located in the Trans-Baikal Territory and the Republic of Khakassia and Tuva. The Company's portfolio of assets includes 4 projects, including one gold mining company (Tardan), one exploration asset in the early stages of development and two survey exploration areas. In 2015, Auriant Mining produced 823 kg (26.468 thousand ounces) of gold, which is 24% less than in 2014.

Source: Economical Information Agency "PRIME" gold.1prime.ru