White Gold won an auction for the Kyuchus gold ore deposit

One of the leading Russian gold producers PJSC Seligdar (MOEX: SELG, SELGP) announced today that White Gold LLC won the auction for the license to develop the largest gold deposit in the Republic of Sakha (Yakutia) – the Kyuchus deposit. White Gold LLC is a joint venture of RT-Business Development LLC, a subsidiary of the Russian State Corporation Rostec, and Gold Asset Management LLC, a subsidiary of Seligdar PJSC. The final bid for the license amounted to 7.735 bln rubles.

Kyuchus gold ore deposit is one of the largest gold deposits in Russia and second largest gold deposit in the Republic of Sakha (Yakutia). It is situated above the Arctic Circle in two districts of the Republic: Ust-Yanskiy and Verkhoyanskiy. The deposit size is 8.35 square km. The gold reserves amenable to open-pit mining comprise 70.919 tons of C1 reserves* and 38.416 tons of C2 reserves*, amenable to underground mining – 65.927 tons of C2 reserves* and 2.647 tons of C2 off-balance reserves*; resources – 41.949 tons of P1 resources and 211.081 tons of P2 resources*. Silver reserves amenable to open-pit mining amount to 16.6 tons of C2 reserves, amenable to underground mining – to 9.9 tons of C2 reserves* and 0.4 tons of C2 off-balance reserves*.

The Kyuchus area doesn’t have sufficient energy infrastructure for the large mining projects and the Company took the obligation under the auction terms to start using electricity of minimum 35 MW that would be generated by a low-capacity nuclear plant. The second mandatory condition under the auction terms was to produce not less than 10 tons of gold annually since the project full ramp-up.

“The Kyuchus deposit is a relatively difficult technological project but it is the pivotal one for Yakutia. I am sure that together with our partners we will find a technological solution and build a production unit that would become the brand of the Republic”, – said Konstantin Beirit, President and member of the Board of PJSC Seligdar.

 

* Russian classification compliant with the State Commission on Mineral Reserves (GKZ) reporting system.

 
About White Gold
White Gold LLC is a joint venture of Gold Asset Management LLC
(67.7%), a company of the Seligdar polymetallic holding, and RT-Business Development LLC (32.3%), a subsidiary of the State Corporation Rostec. The Company was established in 2021. 

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