Natalka

Natalka gold deposit is located in Tenkinsky area of Magadan region some 450 km away from Magadan. It was discovered in 1944.

The deposit is located in the permafrost some in a medium-altitude mountain area reaching up to 1306 m. The permafrost layer is 180-350 m thick under the watershed.

The deposit is impregnated by a network of quartz veins, lenticluar bodies, breccia zones, thin branching and parallel silicon veinlets that vary by orientation and density and silicon and sulphide inclusions. The gold bearing ores are represented by dark grey silicon, carbonated, and sericite schist with veinlets of gold-bearing silicone and disseminated sulphides. Arsenopyrite and pyrite dominate among sulphides.  Gold occurs in free metallic form as well as finely dispersed in quartz veins and arsenopyrite.

According to the last official reserves statement approved by the State Commission on Reserves of the Russian Federation in 1990 Natalka deposit held some 230 tons of gold for by open-pit mining or 245 tons for underground mining. Resources were estimated at 9.39 tons.

In 2003 Natalka reserves were re-evaluated on basis of new technology. At 0.6 g/t cut-off grade Natalka deposit can be considered as large homogenous ore body some 4500 m long and 200 m deep. The deposit of such nature can be efficiently mined by open pit using high-capacity mining and ore processing equipment.

In 2004-2006 large-scale exploration effort were carried out at the deposit.

In the end of 2006 State Reserves Committee (GKZ Rosnedra) of the Ministry of Natural Resources of the Russian Federation completed its expertise of the scoping study for Natalka deposit.

The expertise resulted in the state listing of 1500.8 tonnes (48 m oz) of gold in Russian B+C1+C2 categories in pit outline at the average grade 1.7 g/t, including 1282.9 tonnes (41,2 m oz) of B+C1. In addition to this, the state expertise confirmed 335.3 tonnes (11 m oz) as off-balance reserves outside the pit outline.

The scoping study is based on the open pit mining. Total investments into the projects will amount up to US$1.5 billion. The production of gold at Natalka is scheduled to commence in 2012. The annual gold production will amount to approx. 30 tonnes (1 m oz), on reaching full project capacity.