18th May 2015 08:14
LONDON (Alliance News) - Highland Gold Mining Ltd Monday said its reserves at the Keruka gold project have been deemed compliant with Russian regulations and said it aims to get a JORC-compliant reserve in the third quarter of 2015.
The C1 plus C2 Russian reserves at the project total 62.1 million tonnes to produce 1.99 million ounces of gold and have been approved by the State Committee on Reserves in Russia.
Russian C1 reserves equate to undeveloped but proven reserves whilst C2 reserves relate to probable and possible reserves.
The company submitted a study to the committee at the beginning of 2015. The reserve consists of open pit C1 plus C2 reserves of 45.6 million tonnes for 1.47 million ounces of gold at an average grade of 9.12 grammes of gold per tonne and 16.5 million tonnes to produce 530,000 ounces of gold at an average grade of 12.26 grammes of gold per tonne of C1 plus C2 reserves, which will be mined underground.
Highland is expecting to receive official documents confirming the reserve "in the coming weeks", it said.
Kekura is the company's flagship development project, located in the Chukotka region in Russia's Far East, and is expected to begin production in 2018. The company is aiming to secure a JORC-compliant reserve for the project in the third quarter of 2015, with work already underway.
The Joint Ore Reserves Committee, or JORC, is an organisation that sets the code for reporting of exploration results, mineral resources and ore reserves, otherwise known as the JORC code. The JORC code is a professional code of practice that sets minimum standards for public reporting of minerals exploration results, mineral resources and ore reserves and is used as a worldwide standard.
Highland Gold shares were up 1.0% to 51.00 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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