Nordgold plans to launch gross in early 2018

06 Jun 2016

Alexey Mordashev’s Nordgold is planning to produce the first gold on the field Gross in Yakutia in the first quarter of 2018; construction capital expenses are estimated at $ 250 million, Nordgold’s report informs. In 2016, Nordgold is investing in the construction about $ 125 million. According to the feasibility study (FS), about 12 million tons of ore per year are expected to be produced at Gross mine by open-pit mining; and after reaching of full production, the field will annually produce about 230 thousand ounces (7.2 tons) of gold during 17 years. Experimental and industrial stage has proved excellent economic and industrial parameters of the project of Gross development. When ore treatment was conducted with implementation of the facilities of nearby mine Neryungri (also owned by Nordgold), the degree of extraction amounted to 80% at the prime cost (AISC) about 641 dollars per ounce. The project FS demonstrates IRR at the level of almost 40% with gold price 1250 dollars per ounce and approximately 25% with gold price 1100 dollars per ounce. “Gross has a high economic attractiveness and a low risk level obtained due to comprehensive FS and two years of experimental and industrial stage, Nikolay Zelenskiy, Director General, says. – We intend to complete mine Gross constriction in due time and within the limits of the budget established. Gross and new mine Bouly in Burkina Faso, where production is scheduled to start in the third quarter of 2016, will allow Norgold to increase production level by more than 35% with simultaneous further prime cost reduction”. The project of Gross gold field development was a green field Nordgold’s project. The geological prospecting work resulted in discovering of world class mine with ore reserves of 4.4 million of ounces and mineral resources of 8.5 million of ounces (as of December 31, 2015).

Sourсe: Gold Mining Manufacturers' Reporter