Irkutsk Region

Strategic thrust of the Polyus Group prospecting and exploration in Irkutsk region is in depth field evaluation and steady growth of gold resources and reserves. These operations are run by Lengeo, group’s exploration vehicle in the region.
 
The major amount of exploration works in 2005 took place on Chertovo Koryto deposit.  An exploration and development at the field program provides for no less than 35,000 meters of core drilling and 92,400 cubic meters of trenches. As a result, the growth of Chertovo Koryto resources is expected to amount to 150 tons of gold.
 
Exploration plans have been prepared for Mukodek and Verninskoye deposits as well.
 
The growth of placer reserves is expected to reach 3.2 tones. Placer exploration program provides for no less than 43,700 meters of core drilling and 112,000 cubic meters of exploration trenches.

The western and eastern parts of the Medvezhiy site are located in the Bondaibinskiy region of Irkutsk Oblast and are a part of the deposit of Verninskoe, which belongs to Polyus Gold; in addition, a gold-extracting factory is being built there.  A confirmation of the R&R on the Medvezhiy site (western and eastern parts), will permit for further growth and will allow to substantially increase the R&R base of the developing enterprise, which is planned to be launched in 2009. 

The forecasted resources of ore gold under the categories of P1+P2+P2 in the western and eastern parts of the Medvezhiy site are approximated to be at least 80 tons.  As a result of the exploration and evaluation work done in 2008-2010, an increase in the reserves on the Medvezhiy site is predicted to be at least 30 tons.  It is expected that the exploration work in the next three years will cost around 255 mln rubles.