Nordgold, the gold mining company controlled by Alexey Mordashov, has acquired a new asset in Russia’s Far East. By purchasing a 100% stake in Novaya Syryevaya Kompaniya (New Raw Materials Company), the company gains access to the Lenotap project in Chukotka, where geologists estimate inferred resources of nearly 69 tonnes of gold. However, the asset remains an exploration project rather than a proven gold deposit.
The previous owner had already signed an agreement with the Government of the Chukotka Autonomous Okrug to develop the project. The orebody is expected to be mined using an open-pit operation, the most common and cost-effective mining method for this type of deposit.
The development roadmap extends over several years. Exploration and resource evaluation are scheduled to run from 2025 through 2028, followed by pilot mining, engineering design, and construction of a mining and processing plant. Commercial production is currently targeted for 2032.
Initial exploration spending is expected to total RUB 500 million. If the estimated resources are confirmed and upgraded to official mineral reserves, total investment could reach RUB 20–35 billion, including construction of the mining and processing complex.
Industry experts caution that it is still premature to describe Lenotap as a mineral deposit. The project currently has no proven reserves, and all figures are based solely on resource estimates. In other words, the asset represents a pure exploration opportunity with significant geological risk. At the same time, projects at this stage are relatively inexpensive to acquire, and their value can increase five- to tenfold if economically recoverable reserves are confirmed.
Nordgold is following a classic junior mining strategy: investing at an early stage with relatively modest capital, assuming the geological risk, and aiming to create substantial value once the project’s resource base is verified. For now, Lenotap represents a ticket to future production—one that must still be converted into proven tonnes of mineable gold.
Source: Kommersant
Image: Maria Plotnikova
