Operating in one of the world’s most gold rich areas
Kopy Goldfields AB is the 100% owner of 15 gold exploration and production licenses. During 2012 we acquired eight new licenses and increased our total license area from 256 sq km to 2,338 sq km.
During 2012 we focused our exploration activities on the Krasny project, where we drilled, logged and assayed 11,030 meters. Further, 1,161 meters of trenching were completed to model the surface part of the mineralization. In addition to that, we finalized Russian compliant resource appraisal reports covering the Kopylovskoye and Kavkaz properties, which is crucial for further development of both projects towards production under joint venture arrangements.
We proceeded with summarizing and reinterpreting the historic exploration data covering Bodaibo syncline area in order to develop a unified model of the area and better target our exploration efforts within Prodolny, Vostochnaya, Takhtykan and Pravovesenny areas. Following the acquisition in 2012 of six highly prospective licenses in the Maly Patom-area, we initiated compliance paperwork to authorise exploration activities within these licenses and also started to collect, digitalise and re-interpret the historic exploration data covering both properties in order to develop an exploration work scope.
During the third quarter 2013, the Company filed an application to return two licenses, the Verkhnayaya Orlovka- and the Purpolskaya-licenses, to the Russian state. After returning the licenses, the Company will have 13 licenses on 2,107 sq km.
Project portfolio in different stages
|License||Acquired||Project||Project stage||Valid until||Ownership||Size of license area|
|Kopylovskoye||2007||Pre-feasibility||2020||100 %||1.5 sq km|
|Kavkaz||2008||Pre-feasibility||2015||100 %||3.4 sq km|
|Scoping study||2035||100 %||31 sq km|
|2010||Krasnyy North||Test drilling||2035||100 %|
|2010||Krasny East||Test drilling||2035||100 %|
|Prodolny||2008||Uspensky||Resource drilling||2033||100 %||141 sq km|
|2008||Zolotoy||Test drilling||2033||100 %|
|2008||Obrucheva||Test drilling||2033||100 %|
|2008||Vladimirovsky||Early exploration||2033||100 %|
|2008||Gromovsky East||Early exploration||2033||100 %|
|2008||Gromovsky North||Early exploration||2033||100 %|
|2008||Gromovsky||Early exploration||2033||100 %|
|Vostochnaya||2010||Bannoye||Early exploration||2035||100 %||13 sq km|
|Bannoye East||Early exploration||2035||100 %|
|Pravovesenniy||2010||Kapustinskiy||Early exploration||2030||100 %||35 sq km|
|Takhtykan||2010||Tahktykan||Early exploration||2035||100 %||30 sq km|
|Tahktykan South||Early Exploration||2035||100 %|
|Purpolskaya||2012||Early Exploration||2017||100 %||150 sq km|
|Verkhnyaya Orlovka||2012||Early Exploration||2017||100 %||81 sq km|
|Tyrynakh||2012||Tyrynakh||Early Exploration||2037||100 %||250 sq km|
|Bolshaya Taimendra||2012||Bolshaya Taimendra||Early Exploration||2037||100 %||289 sq km|
|Gorbylakh||2012||Gorbylakh||Early Exploration||2037||100 %||417 sq km|
|Omur-Yurakh||2012||Omur-Yurakh||Early Exploration||2037||100 %||365 sq km|
|Chencha||2012||Chencha||Early Exploration||2037||100 %||71 sq km|
|Malo-Patomsky||2012||Malo-Patomsky||Early Exploration||2037||100 %||460 sq km|
|Total||15 licenses||23 projects||in different stages||2,338 sq km|
The projects are in different development stages, with the Kopylovskoye deposit being in the most advanced stage:
- Kopylovskoye (1) has reported mineral resources within JORC Code and is on hold until more resources are identified within the area
- Krasny (12-14) has reported initial mineral resources within JORC Code and is currently being further explored. Download the mineral resource report here. In April 2013 a scoing study for the Krasny project was published confirming potential for 60 koz of open pit production of gold during 18 years, with USD 360 million in free cash flow. Download the scoping study here.
- Kavkaz (2) is in the advanced exploration phase.
- Uspenskiy-mineralisation at Prodolny -license and Bannoye mineralisation at Vostochnaya license are ready for resource drilling
- Takhtykan-license (16-17), Bannoye East-mineralisation at Vostochnaya-license (10-11); Gromovsky North, Obrucheva-,Vladmirovskiy- and Zolotoy-sites on Prodolnyy-license (6-9); Krasny East-, and Krasny North-targets on Krasny-license (13) and Kapustinskiy-mineralisation at Pravovesenniy-licenses (15) are in early exploration phase
The licenses are geographically concentrated within a 40 x 20 km large area, with 40–75 km distance to the area’s main town Bodaibo. The distance from the deposits to the main road is between 1 and 10 km. From Kavkaz in the west to Takhtykan in the east is the distance only 25 km, creating a good opportunity for servicing several deposits from one processing plant.
The Kopylovskoye site has a ready connection to the local utility’s VitimEnergo’s electric grid in place, which in turn is connected to the national Russian grid. The Krasnyy and Prodolnyy sites are also equipped with heavy current electric mains. All the Company’s project sites are located close to each other, with the distance to the main state road – which runs north from Bodaibo to the town of Kropotkinsky – ranging between 1 and 10 km.
Long history of gold exploration and production within the area
Bodaibo area has more than 150 years of gold production. First gold was produced from placer deposit in 1850. Since then the region was steadily producing round 0,25 Moz of alluvial gold per year. Accumulated gold production exceeds 30 Moz. Placer production still makes majority of regional gold output: 0,33 Moz out of 0,45Moz in 2008 came from alluvial deposits.
During 1846 until 2002 total gold production in Lena goldfields exceeded 1,125 tons (36 Moz), including only 0,5 tons (0,016 Moz) of bedrock gold.
Alluvial operations at Prokopievsk mine (on the border of Prodolny block) in 1880
World class gold deposits, developed infrastructure and good local connections
Bodaibo area hosts several world class bedrock gold deposits – Vysochaishiy, Verny, Chertovo Koryto and Sukhoy Log which is apparently the largest undeveloped gold deposit in the world with some 60 Moz of reserves.
Gold mining is the main industry in the area. Bodaibo was founded as headquarter of alluvial producers in late 19th century. Each of 16,000 citizens of Bodaibo has relations with the gold business. The area has reasonably good infrastructure: airport in Bodaibo, federal year-round roads from Bodaibo to main gold production sites, hydro electric power plant on the Mamakan River and connection to the Russian national electric power grid, schools, hospitals and shops.
Federal road in Bodaibo
Seven of the licenses are geographically concentrated within a 40 x 20 km large area, within 40 to 75 km distance to the area’s main town Bodaibo. The distance from the deposits to the main road is between one and ten km. From Kavkaz in the west to Takhtykan in the east, the distance is only 25 km, creating a good opportunity for servicing several deposits from one processing plant. The infrastructure is well developed with water supply, electricity and federal roads to the deposits.
The eight licenses we acquired during 2012 are geographically located on a distance of 200 – 300 km from Bodaibo, all served by a public road and have a history of alluvial production.
Artemovsky mining district (Lena Goldfields) is the target exploration area with 20 Moz of historic alluvial gold production.
All deposits are located up to 150 km from Sukhoy Log (60 Moz) which is the world largest undeveloped gold deposit, state owned among producing placer deposits
- Good local connections through regular meetings with Irkutsk region and Bodaibo major