Name of the Project
Belaya Gora and Blagodatnoye gold mine.

Location
The Belaya Gora and Blagodatnoye deposits are located on the left bank of the Amur river, in the Nikolaevsky district of Khabarovsk Territory, in the Khabarovsk region of Russia.

Client
Highland Gold.

Project Description
Belaya Gora and Blagodatnoye are both openpit operations.

Both deposits have total proven and probable reserves of 20.1-million tonnes grading 1.44 g/t gold.

The strategy is to mine the remaining reserves at Belaya Gora first, which are expected to run out by 2024, and then mine Blagodatnoye, which is expected to operate for another eight years.

Both deposits are planned as openpit operations using conventional drill, blast, load and haul methods.

The existing process plant at Belaya Gora will be modified to process ores from Belaya Gora and Blagodatnoye.

Gold will be recovered by grinding, gravity concentration, cyanide leaching and carbon adsorption, elution, electrowinning and smelting.

A mill rate of 1.5-million tonnes is planned for Belaya Gora and 1.35-million tonnes for Blagodatnoye.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate, of $97-million and an internal rate of return of 142% for the combined project, excluding historical costs and based on a gold price of $1 250/oz.

Value
The Belaya Gora mine has estimated capital expenditure of $15-million for upgrades to its processing plant, which comprises the addition of a carbon-in-pulp circuit.

To move mining activity from Belaya Gora to Blagodatnoye, about $21-million will be required in 2023. Capital expenditure includes the acquisition of a crushing circuit, road construction and upgrades, and equipment replacement.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Highland Gold, tel +44 1534 814202, fax +44 1534 814 815 or email info@highlandgold.com.