Armada building Russian pilot plant

Alberta-listed Armada Gold will build a pilot plant on the Baley gold tailings project in Eastern Russia’s Chita region.

The plant is expected to yield 4,000 oz. gold annually, starting in July or August.

Should the plant prove successful, Armada will bring Baley into full production at an annual output of up to 120,000 oz.

Pre-construction work is already under way, including: pouring concrete foundations for the plant; commissioning the ball mill to process feed; surveying the dam walls and surfaces; and drilling 25 holes to verify grades and tonnages of the two tailings dams known as the ZIF-I and ZIF-II. Armada, which owns 49% of the project, will use local materials and labor to operate the plant. Construction of the ball mill and pilot plant, combined with drilling, is expected to cost about US$200,000.

Previously, 80 holes were drilled at the ZIF-I site, after which a reserve of 17.5 million tons (proven, probable and possible), averaging 1.1 grams gold per tonne, was estimated. ZIF-II contains a possible reserve of 40 million tonnes.