Investment Plan, Gold Mining Sector
In September 2006, Navigator Consulting was commissioned by a Russian company to prepare an investment promotion project for the development of gold exploration and mining of a gold-bearing area in Karelia Province, Russia.
The deposit is located on the central part of the gold-bearing area on the western bank of a lake, in slightly hilly plains, with 80% coniferous wood cover (substantially cleared), and marshes and bodies of water covering the remaining terrain.
The deposit consists of a 30-meter wide mineralised sub-meridonal area, where a number of scattered wells (150-250 meter depth) were drilled along a 1.5 km line. The gold content is assessed at between 1 to 25 grammes per tonne, for an average content of 8.1 g/t. Towards the surface, mineralization reaches 13 to 24 g/t. Ores are gold pyrite type and free of admixtures or other components. The deposit predominantly contains nugget gold with 2+0.5 mm grain size.
Exploration and assays conducted by state mineral surveys provide an estimate of reserves and resources of the field and ore knot. The ore-bearing zone comprises a series of steeply pitching ore bodies (thicknesses 1-7 m, length 50-70 m) occurring at a depth of 5 to 200 m, in an area 250 m in length by 30-40 m in width.
A number of associated areas of mineralization are found in the area of license. The total resources and reserves are estimated at 7.8 tonnes recoverable reserves (C2+P1) with a further potential of 105.3 tonnes resources, for a total resource estimate of 112.3 tonnes.
Navigator's tasks included:
Structuring the investment project into two clearly-understood phases, with a preliminary project finance plan for each phase;
Setting up meetings with various banks and financial institutions in Moscow and London and pitching the project to potential investors;
Coordinating additional investment promotion activities.
The business plan was developed based on a two-stage development process:
Phase 1: Reserves Increment and Gold Mining (2007-2008): gold mining of the field to a depth of 50 m, using open-pit mining. The construction of a concentration plant will be used to refine gold on site.
Phase 2: Follow-up Reserves Increment and Commercial Gold Mining: mining of the central accumulation and flanks of the deposit using open-pit mining up to 100 m, and closed mining up to 300 m.
The development of a production complex based in the area was planned, comprising:
Mining complex: pits, rock dump, settler;
Concentrating complex: modular-based concentrating plant located in a hangar, plus administration and security facilities and fence, ore stockpile, tailings storage with a pump station and water circulation system;
Engineering support complex: diesel power stations, water supply system with pump station, local heating plants, production and amenity areas, waste disposal plants (sewage and storm-water run-off), inventory and fuel warehouses, auxiliary sites.
Russian Transport & Infrastructure Company
Date of Engagement:
September 2006 - March 2007
Countries of Operation:
Russia, United Kindom
Investment Advisory Services, Marketing
Industry & Manufacturing, Mining & Natural Resources