Magadan Region

Gold production at Natalka first begun in 1945. Until 2004 the deposit was developed by means of underground mining. Ore was processed by to gravitation-and-flotation technology with subsequent amalgamation of gold from gravitation concentrates and hydrometallurgical treatment of flotation, amalgamation, and gravitation tailings. Despite its large scale, on the average Natalka mine produces only 150 kg of gold a year. Over the entire history of the deposit some 93.2 tons (2.8 mln oz) of gold have been produced. Gold output in 2004 totaled 0.43 tons (14 K oz). In July 2004 production was suspended in order to switch to open pit mining.

Beginning with 2004 further exploration and refinement of morphology of ore body under new exploratory conditions corresponding to high yield production via open pit mining method are being conducted.

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.