23rd Apr 2019 11:40
LONDON (Alliance News) - Trans-Siberian Gold PLC on Tuesday said the Federal Agency for Subsoil Use has issued a licence for the development and exploration of the Rodnikova deposit in east Russia.
The gold producer said the licence was awarded to its subsidiary, ZAO Trevozhnoye Zarevo, for a tenure of 20 years.
Rodnikova is a gold and silver epithermal deposit located in close proximity to the company's operating Asacha mine, Trans-Siberian said, and is estimated to contain one million ounces of gold with an average grade of 5.3 grams per tonne.
Epithermal means a hydrothermal deposit formed at a shallow depth below a hot spring system.
The company said it is currently devising its exploration field work programme to assess the full potential of the Rodnikova deposit and options to potentially initiate early stage production.
Taking into consideration the fact that the Asacha and Rodnikova deposits are believed to have similar geology, mineralogy and metallurgy, the company said it will determine the suitability of utilising the existing processing techniques and plant at Asacha for the ore at Rodnikova.
"We believe that Rodnikova is a complementary asset which perfectly fits the Trans-Siberian Gold portfolio of epithermal deposits as well as our strategy of becoming a premier mid-tier gold producer and developer," said Chief Executive Alexander Dorogov.
Trans-Siberian shares were trading 1.5% higher on Tuesday in London at 57.88 pence each.
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