OREANDA-NEWS. On December 20, 2007 the State reserves committee (GKZ Rosnedra) confirmed the reserves of Titimukhta deposit and got them listed with the state reserves balance. The licence holder of Titimukhta deposit is ZAO Polyus, a wholly-owned subsidiary of OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), reported the press-centre of Polyus Gold.

The Titimukha deposit was discovered in 1991; in 2004-2007 ZAO Polyus carried out exploration works at the deposit. Following the exploration works Titimukhta balance reserves under C1+C2 categories amounted to 27 million tonnes of ore and 82.8 tonnes  of gold (2 663 k oz) at the average grade 3,06 g/t. In addition to that, off-balance reserves in pit outline amounted to 7,8 tonnes (250 k oz) of gold at the grade 0,53 g/t.

The conclusion of the GKZ Rosnedra experts’ commission confirms that the geological and mining conditions of Titimukhta are favorable for the open pit mining down to the level 300 meters, with the depth of the pit equaling to 350 meters.

Basic parameters of the Titimukhta development project have been earlier approved by the Board of Directors of Polyus Gold. According to the approved project, the annual ore processing capacity will amount to 1,5 million tonnes in 2009 and will increase to 2,2 million tonnes beginning in 2010. The average gold production will amount to 3,7 tonnes (119 k oz) in 2009 and will reach 5,3 tonnes (170 k oz) in 2010. According to the decision taken by the Board of directors of Polyus Gold, the total investments into the project (less exploration expenses) for the period 2006-2010 will amount to $98,7 million (excluding VAT).

General Director of OJCS Polyus Gold Evgueni Ivanov noted that the Titimukhta development project is a part of the company’s Strategy till 2015 approved by the Board in September 2006. Mr. Ivanov also mentioned that Titimukhta is located in immediate proximity to Polyus’ Olimpiada deposit. “Titimukta will become feed provider for Olimpiada, - Mr. Ivanov said, - and the existing industrial and social infrastructure of Olimpiada will be used for Titimukhta development”. The ore mined at Titimukhta will be processed at Mill-1 of Olimpiada mine, after the modernization works are carried out in the year 2008”.