Wednesday, 15th June 2005 (2586 views)

The mining companies Bema Gold and Highland Gold have both extolled the advantages of mining for gold in the frozen north of Russia.

Speaking at the BMO Nesbitt Burns Northern Exposure Investor Symposium in Toronto yesterday, representatives from both companies said that engineering skill and extensive natural resources made working in the region well worth braving the cold.

Highland Gold, headquartered in the Channel Islands, owns two operating gold mines and three development projects in northern Russia, and the company's head of investor relations, Grant Sinitsin, said production was flourishing.

According to Mr Sinitsin, the company's total 2004 gold production was reported at 200,000 ounces for a cash operating cost of US4187/oz.

Reserves are estimated at eight million ounces, and Highland hopes to become a one million per ounce gold producer, including producing 750,000 ounces from its current assets.

Tom Garagan, vice president of exploration at Bema, and Fred Stahlbush, feasibility manager, are meanwhile exploring and developing "one of the largest epithermal vein systems in the world" at Kupol in Russia, according to Mineweb.com.

Bema has a 40 per cent interest in the project, which is estimated to contain indicated resources of 4.18 million ounces of gold.

Construction is planned to commence in 2006 costing a total of US $364 million.

 

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