Nordgold has become a co-owner of licenses for two exploration properties in Kamchatka Krai — Tutkhlivayam and Gevilvilen-West. The licenses are held by Ossorskaya Mining and Geological Company (Ossorskaya GGK), and a 20% stake in the company has now been acquired by Nordgold’s subsidiary, Nordgold Development LLC.
The more promising of the two properties is Tutkhlivayam. According to preliminary estimates, forecast resources in the P1 category amount to 6.7 tonnes of gold and 371.7 tonnes of silver. An additional 30 tonnes of gold and 692 tonnes of silver are classified as P2 forecast resources. Average gold grades are estimated at 11.4 grams per tonne, which is considered exceptionally high by industry standards.
The second property, Gevilvilen-West, remains at an early stage of geological exploration, and detailed resource data has not yet been disclosed.
Industry experts emphasize that these figures represent forecast resources rather than proven or probable reserves. To upgrade the project to a mineable category, extensive drilling will be required, reserves must be registered on the state balance sheet, and the economic viability of development must be demonstrated. Exploration expenditures are estimated at approximately 500 million rubles, while the exploration phase itself could take two to three years.
Tutkhlivayam is particularly attractive because of its volcanic-hosted mineralization and relatively shallow ore occurrence. These characteristics could potentially accelerate future mine development. Although infrastructure costs in Kamchatka are traditionally high, the elevated gold and silver grades could result in comparatively low production costs, aligning well with Nordgold’s development strategy.
Should the project advance to commercial production, total investment could reach several billion rubles. For comparison, construction of the processing facility at the Asachinskoye deposit was estimated at 2.4 billion rubles, development of the Ametistovoye project at 4 billion rubles, and construction of the mining and processing plant at Kumroch at approximately 20 billion rubles.
With Russia’s gold resource base gradually declining and few major new discoveries being made, participation in projects of this kind allows Nordgold to strengthen its position in the strategically important Russian Far East. In addition, if exploration proves successful, the company may qualify for discoverer rights and obtain a mining license without participating in a public auction.
Nordgold’s entry into the Kamchatka project therefore represents a long-term investment in mineral exploration. At this stage, the project does not require massive capital expenditures, but confirmation of resources could eventually lead to the construction of a new gold mining operation on the peninsula.
Source: Kommersant
Image: Nordgold
