Nordgold increased investments in Neryungri-Metallic LLC by 2.7 times

26 May 2016

During the first quarter of 2016, Nordgold increased capital expenses for the development Neryungri-Metallic LLC by 2.7 times in comparison with the same period last year to 1.9 million dollars, states the company press release. The main costs are directed, in particular, for the construction of Gross gold mine (total cost $ 250 million); in 2016 it is planned to allocate $ 125 million. In addition, the company is constructing a new site at the Neryungri mine for heap leaching, which is planned to be commissioned in the third quarter of 2016. Last year, the company completed drilling operations at the Southern Uguyskiy area, where there are Tabornoe and Gross mines. On Tokkinsky site at the Western border of the area highly inferred reserves have been discovered; it has been found that the ore zone has a north-western continuation. Grounding on the positive results of drilling operations, an application for a new exploration license on the area adjacent to the Southern Uguyskiy area from the West has been filed; it is expected to be obtained in June. In the first quarter of 2016, Neryungri-Metallic LLC has produced 12.5 thousand ounces (389 kg) of gold, which is 31.5% less than for the same period last year, at a cost of 582 dollars/ounce. Since 2000, Neryungri-Metallic LLC has been conducting gold mining at open-mining Taborny area, located in Olekma ulus in the South-West of the Republic of Sakha (Yakutia). In 2015, the company increased production by 28%, to 84.1 thousand ounces (2,616 tons) of refined gold.

Sourсe: Gold Mining Manufacturers' Reporter