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Kekura gold project, Russia

2nd March 2018

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Kekura gold project.

Location
The project is located in the Chukotka region, in north-eastern Siberia, Russia.

Client
Highland Gold.

Project Description
The project has total gold reserves of 8.88-million tonnes grading 7 g/t gold and total resources of 9.46-million tonnes grading 8.1 g/t gold.

The definitive feasibility study on the project includes the initial development of an openpit mine using a conventional shovel-and-haul truck operation to mine 5.75-million tonnes of ore over the ten-year life of the openpit mine. In Year 5, the underground mine will be developed to provide an additional 3.13-million tonnes of ore for 12 years of underground mining.

The Kekura process plant is designed to treat 800 000 t/y of gold ore, containing 3.7 g/t to 13.5 g/t of gold, with an average head grade of 7.49 g/t for the first nine years of plant operation. For the final seven years of operations, the plant will process 300 000 t/y of ore, with an average head grade of 5.58 g/t.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate, of $311-million and an internal rate of return of 38%, excluding historical costs, based on a gold price of $ 1 250/oz.

Value
The project is estimated at $229-million.

Duration
Precommissioning is scheduled for late 2020 or early 2021, with ramp-up to full production in the second half of 2021.

Latest Developments
Preliminary construction work is under way at Kekura, with the bulk of construction due to take place in 2019/20.

Key equipment will be selected and ordered this year for delivery to site in early 2019.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

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

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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