Equity Funding for Alrosa Project ...Norilsk Buys Gold Producer

iMINING WEEKi

Krasnoyarsk region, uses bioleaching to Rubicon’s Avalon Trend properties are Equity funding for process primary ores. located on the eastern extremity of New- Alexander Shindler, head of the Moscow foundland, in an area that has only recent- Alrosa project . . . office of Polyus, has indicated that there ly been recognised as containing a was clearly opposition inside Polyus to the gold-bearing epithermal alteration system The Russian state-owned diamond pro- deal. Mr Shindler said that he is “not by geologists from the Government of ducer Alrosa Co. Ltd is to raise funding aware of the sale of Polyus to Norilsk Newfoundland and Labrador. Mapping has through the Russian stock markets for one Nickel and cannot comment on this infor- discovered a quartz-adularia-mineralised of its projects. Prime-Tass news agency mation”. He referred all questions to the vein system 18 m wide and 1.5 km long, reports that the company will issue Rb400 head office of Polyus in Krasnoyarsk. A showing ‘boiling-zone’ characteristics. million (US$1 = Rb31.76) in new shares in spokesman for the company acknowledged Larry Kornze, Candente Resources a subsidiary, OAO Severalmaz, developer the sale to Norilsk Nickel, but refused to Corp.’s director of business development of the Lomonosov diamond project in the disclose any other details. The deal has recognised a similarity between the geolo- Arkhangelsk region of northern European clearly been in negotiation for several gy and mineral-deposit model of the Bot- Russia. (Alrosa’s wholly-owned, core oper- months. In July, when initial reports sur- wood Basin and those of the Carlin Trend ations are in the Siberian Republic of faced from Norilsk Nickel, Mr Shindler in Nevada. Mr Kornze is a former Barrick Sakha.) Alrosa currently holds a 72% inter- was categorical in denying there was, or Gold Corp. geologist with experience at est in Severalmaz, and the Arkhangelsk would be, any sale (MJ, July 19, p.46). the Meikle, Betze and Screamer deposits regional administration holds 25.6%. in the Carlin Trend. He describes Bot- Alrosa plans to develop Lomonosov at a wood’s geological setting – Silurian lime- capital cost equivalent to US$420 million. Newfoundland gold stones overthrust by Cambrian/Ordovician First production is scheduled for 2004. likened to Nevada shales and greywackes – as being “exactly Annual production is expected to be worth like the Carlin Trend”. Candente holds an estimated US$200-250 million, from 5 A road show by the Newfoundland and properties along the ‘Mustang’ and Mt/y of ore, over a 50-year life (MJ, Sep- Labrador Chamber of Mineral Resources ‘Moosehead’ trends, covering a total of tember 14, 2001, p.203). The project has Inc. recently presented the mineral poten- 375 km2. previously been reported to contain five tial of the island of Newfoundland. A semi- Copper Hill Corp.’s 25 km2 Tim’s Cove kimberlite pipes, with an average grade of nar in London, organised by LMA gold property is located along the ‘Mus- over 0.3 ct/t. Associates, presented companies exploring tang Trend’, and contains a system of min- Part of Alrosa’s interest in Severalmaz for gold and base metals. eralised quartz veins and altered host was acquired two years ago from the Altius Minerals Inc.’s chief executive, rocks over 3 km long. Paris Georghiou, the South African-based diamond producer De Roland Butler, gave details of the compa- company’s president and chief executive, Beers. The latter evaluated the project ny’s exploration joint venture with Barrick said that drilling planned for the Berni over a number years, up to due-diligence Gold Corp. in the Botwood Basin area of zone is awaiting funding. The company is level, before withdrawing (MJ, May 19, north-central Newfoundland, under the seeking joint-venture partners for the 2000, p.389). terms of which Barrick can earn a 75% Tim’s Cove property and also for its Pow- interest in properties deemed to be derhorn VMS property, located 50 km prospective for sedimentary-hosted Car- north of Springdale, in a similar geological . . . Norilsk buys lin-style gold mineralisation (MJ, April 26, environment to the Buchan’s base-metals gold producer p.301). The properties are located along a mine. 90-km regional feature that Altius has Also active in Newfoundland is Vulcan The Russian nickel and platinum-group termed the ‘Mustang Trend’, and contain Minerals Inc., which holds gold, base-met- metals producer MMC Norilsk Nickel has areas of gold-arsenic-antimony mineralisa- als and oil properties across the island. Its acquired all of the shares in ZAO Polyus of tion and barite mineralisation, as well as Little River gold property is located on Krasnoyarsk, Russia’s leading gold pro- areas of decalcification, silicification/ the south coast of Newfoundland, where ducer, for the equivalent of US$226 jasperoid development, and clay alter- numerous gold occurrences have been million. Norilsk Nickel stated: “The acqui- ation. The Botwood Basin claims were recorded over a 30 km strike length. sition of ZAO ‘Polyus’ is an important step selected by Altius after four years of Globenet Resources Inc., a company for- in the application of MMC Norilsk Nickel’s detailed work. merly focused on technology, has proper- diversification strategy, aiming at Altius is also working at a nearby ties in the southwest of Newfoundland, in strengthening the competitive position of gold property along what it terms the an area formerly investigated by Royal the company in base and precious metals. ‘Moosehead Trend’ in joint-venture with Oak Mines Inc. A number of deposits were This acquisition is expected to provide a Agnico-Eagle Mines Ltd, as well as at discovered, but the bankruptcy of Royal number of significant synergies for the volcanogenic massive sulphide (VMS) Oak meant that the properties have only company. As a result of the ZAO ‘Polyus’ polymetallic targets in separate joint- recently become available once more. acquisition, MMC Norilsk Nickel has ventures in Newfoundland with Inmet Barrick’s involvement with Altius in become the largest gold producer in Rus- Mining Corp., the BHP Billiton group and such early-stage exploration has encour- sia with its share of domestic gold produc- Noranda Inc. aged a large number of other companies to tion exceeding 15%.” Rubicon Minerals Corp.’s exploration in take an interest in the potential of the Bot- Polyus is currently the largest gold Newfoundland is targeting six projects wood Basin. Staking activity in Newfound- producer in Russia, with output in 2001 of across the island, including Golden land, aided by the Government-funded 15.6 t (502,000 oz), about 10% of national Promise, at which the company has recent- Mineral Incentive programme, has been mined output (this issue, p.311). Current ly intersected strong gold mineralisation increasing over the past two years, with a gold production at Norilsk Nickel is (MJ, September 27, p.217). Its Glenwood strong increase this year. In 2001, 9,885 3.3 t/y, and the latter company anticipates Trend properties in the Botwood Basin are claims were registered, whereas a total of output from Polyus this year at 25 t. mainly adjacent to the northern end of the 23,776 had been registered by September Polyus is in the process of expanding its Altius-Barrick properties, and the compa- this year, and a considerable number of key Olympiadinskoye gold mine to 30 t/y ny holds the largest land position in the those are related to gold exploration in the (MJ, July 19, p.46). The operation, in the Botwood Basin. central region of Newfoundland.

Mining Journal, London, November 1, 2002 303