Celtic Resources has announced that an independent study of its Russian gold mine shows it has an estimated 242 per cent more reserves than previously thought.
The Nezhdaninskoye gold mine in the eastern province of Yakutia is thought to have 2.9 million ounces in reserve rather than the original estimates of 1.2 million ounces.
"Independent verification of reserves by SRK has confirmed that Nezhdaninskoye will become one of Russia’ s largest gold mines," Mr Kevin Foo, chairman and managing director of the survey company SRK Consulting, said .
"The study has also shown that a capital investment of only $12 million will enable production of 45,000 ounces in 2002, increasing to 140,000 ounces in 2003.
"The mine also lends itself to staged development and we envisage gold production rising to 350,000 ounces/year by 2007 with further investment,"
he said. Celtic also announced Standard Bank London Limited had been appointed as exclusive arranger for a $13.5 million project financing for Nezhdaninskoye.
Celtic’s other major project, the 50-per cent owned Suzdal gold mine in Northern Kazakhstan, is expected to produce 43,000 ounces this year at a total cost of $140 per ounce.
"Prospects at Suzdal have increased significantly with the announced high-grade primary ore drilling results and we will be accelerating this project with the intention of increasing production beyond 100,000 ounces by 2003," Mr Foo said.