A series of agreements with its Russian joint-venture partner will give Armada Gold (ASE) an additional 17% interest in mineral licences in Russia.
Armada’s Russian partner, Baleyzoloto, will sell 7% of jointly owned Balgold Limited to Armada for US$4 million, subject to Russian government approval. Armada can earn a further 10% of Balgold under option agreements, with a total price of US$4 million.
These transactions will boost Armada’s interest to 66%.
Armada plans to operate the Taseevskoye deposit, which hosts 78 million tonnes grading 2 grams gold per tonne. Baleyzoloto has also brought two other deposits into the Balgold fold: the Sredny Golgotay, with 653,000 tonnes grading 15.5 grams gold; and the Verkhne-Aliinsko, with 1.4 million tonnes grading 11.4 grams.
Sredny Golgotay is a former producer, wheras Verkhne-Aliinsko has been drilled off but not developed. Armada expects to work these two deposits as a source of supplementary, high-grade feed for the Taseevskoye mill.
The Baley gold camp, about 200 km east of Chita in southern Siberia, historically produced about 20 million oz. gold from epithermal veins. Armada has engaged consulting firm Davy International to provide a prefeasibility study.
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