Large-capacity gold mine in chemically weathering crusts with gold resources of 73 tons

(Russia, Altai Kray)

STRATEGIC INVESTMENT OPPORTUNITY

Mine locationWell-developed infrastructure of districtTransport accessibility

The Uskunay mine is located in Altai Krai in the area with the well-developed infrastructure.

It lies 40 km away from Prokopyevsk, a Kuzbass industrial cluster, and 50 km away from Togul, a district centre.

Geographical coordinates of end points of the area:

53о 36’21” nl, 86o 07’09” el53o 40’ 43”nl, 86o 15’ 54” el53o 38’ 05” nl, 86o 20’ 09” el53o 34’ 08” nl, 86o 10’ 59” el

The geologic allotment is 81 km2.

Historically gold mining areaThe mine lies in Salair, which historically has been an area of gold mining. This is the place where the first mint for making golden and silver coins was built in the middle of 18 century. Almost all Salair rivers are rich with native gold which has been mined until present. The source of native gold is primary lode deposit gold and gold from weathering crusts, possessing reserves of hundred thousand tons.

Content and characteristics of gold in ore of the Uksunay gold mine

The results of chemical analyzes and assay of the Uksunay mine ore

Compounds and

elementsContent, %

Compounds and

elementsContent, %

SiO2 55,48 Sgen 0,07Al2O3 16,94 Ssulph 0,03

Fe 10,13 Сgen 0,14P2O5 0,24 Corg <0,01CaO 0,98 Zn 0,016

TiO2 0,94 Pb <0,01MnO 0,34 Cu 0,014MgO 1,97 Au, g/t 2,48As <0,01 Ag, g/t 5,0

Element Content of element, g/t Element Content of element, g/t

Li Be B

Na Mg Al Si K Ca Sc Ti V Cr Mn Fe Co Ni Cu Zn Ga Ge As

4,75 0,23 9,74

5843,95 7903,67

39709,06 57186,93 8867,18 5480,57

53,43 1760,71 182,55 81,31

1342,20 51669,93

30,54 69,00 92,88 83,69 18,51 1,30

255,35

In Sn Sb Te I

Cs Ba La Ce Pr Nb Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Hf

0,11 1,27 2,76 0,08 0,48 0,41

192,13 3,51

10,88 1,54 6,15 1,37 0,40 1,16 0,15 0,87 0,14 0,40 0,06 0,54 0,07 0,80

Se Br Rb Sr Y Zr Nb Mo Cd

2,44 71,65 13,69 82,50 6,59

46,70 1,39 0,00 0,13

Ta W Re Hg TI Pb Bi Th U

0,07 4,19 0,00 0,27 0,12 6,60 0,04 2,00 0,66

Size classes, mm

Yield, %

Content Au, g/t

Distribution Au, %

-1+0,5 20,9 3,28 30,6-0,5+0,25 19,0 2,86 24,3-0,25+0,1 11,9 4,82 25,6-0,1+0,071 4,4 3,67 7,2-0,071+0,04 9,0 1,72 6,9

-0,04 34,8 0,35 5,4Total 100,00 2,24 100

Gold distribution for classes

Forms of gold in the ore and the nature of their

connection with its main components

Content Au, g/t

Distribution Au, %

Free gold (amalgamated) 2,84 89,88

Gold open splices (cyanidationed)

0,10 3,16

Enclosed in the acid-soluble minerals and under the film

0,09 2,85

Enclosed in sulfides 0,00 -

Enclosed in rock-forming minerals

0,13 4,11

Total: initial ore (according the balance)

3,16 100

Phase analysis of gold Different sizes of the Uksunay mine gold

Cloddy,plate-type gold

Baculiform gold

General form offine gold

Content and characteristics of gold in ore of the Uksunay gold mine

Study of the technological properties of the Uksunay mine ore

Results of gravity concentration

Product of

gravitation

Product yield,

%

Gold

content, g/t

Gold

recovery, %

Au-head 0,00187 35132,6 29,9

Gravity concentrate 1 0,96 66,12 28,9

Gravity concentrate 2 0,16 282,74 20,6

Combined gravity

concentrate

1,12 97,04 49,4

Total 1,12187 - 79,3

Gravity tailings 98,87813 0,46 20,7

Initital ore 100,00 2,20 100,00

Products of cyanidation

Gold content, g/t

Gold recovery, %Conditions of cyanidationof

operationof

oreCombined gravity concentrate

Resin AM-2B - 95,5 47,2 Sample – 50 g; ratio Ж:Т=2:1NaCN – 0,1%;СаО – 0,02-

0,03%;loading Resin AM-2B – 5%;

time – 24 hour.

Cyanidation tailings

4,36 4,5 2,2

Total (combined

gravity concentrate)

97,04 100 49,4

Tailings of 2 stage gravityResin AM-2B - 56,5 11,7 Sample – 200

g; ratio Ж:Т=2:1NaCN – 0,1%;СаО – 0,02-

0,03%;loading Resin AM-2B – 3%;

time – 24 hour.

Cyanidation tailings

0,20 43,5 9

Total(tailings of 2 stage gravity)

0,46 100 20,7

Results of gravity-cyanidationed concentration

Gold resources of the Uksunay gold mine

For the Uskunay orefield (ore shoot 1) gold resources of P2 category are estimated to be 40.7 t, while average content is 0.52 g/t.

For the whole Uskunay plot the gold prognostic resources of category Р2 are estimated to be 45.9 t, which are contained in 63.6 million tons of ore, where average content is 0.72 g/t.

The Uksunay gold field is classified as a large capacity deposit with favourable mining and geological conditions allowing mining gold by means of excavation and avoiding drilling and blasting. The depth of ore body stoping is down to 30 m, capping thickness is 5-7 m.

Thus, having such a stoping efficiency of gold mining from the Uksunay goldfield weathering crusts is highly efficient.The average cost to produce a gold ounce will not exceed 650 US dollars, which is way below average cost of ounce mining in the world. Reserves and resources of this field allow for a construction of a gold mine producing 1.0 - 2.0 million tons of ore annually with adequate level of supply for at least 20 years.