Highland Gold Mining says cost of Kekura project in Russia estimated at $229m
Source - SMW
Highland Gold Mining said a definitive feasibility study of its proposed Kekura gold project in Russia had indicated an expected capital cost of $229m.
Average annual gold production of 172 koz was estimated for the first eight years of operation and 46 koz for the final eight years.
Highland Gold Mining is targeting the commencement of production in 2021.
Gold reserves were upgraded to 2.0 Moz at a grade of 7.0g per tonne, veruses a previously reported 1.7 Moz at a grade of 10.7g per ton.
Preliminary construction work had already underway at Kekura, with the bulk of construction due to take place in 2019-2020.
Key equipment would be selected and ordered this year for delivery to site in early 2019. Pre-commissioning was scheduled for late 2020 or early 2021, with ramp-up to full production in the second half of 2021. At 2:14pm: (LON:HGM) Highland Gold Mining Ltd share price was +2.2p at 148.2p