Nordgold Reserves & Resources and Exploration Update 2012

Amsterdam, Netherlands, 23 April 2012 – Nord Gold N.V, (“Nordgold” or the “Company”, LSE: NORD), an independent, internationally diversified, pure-play gold producer strategically focused on emerging markets, is pleased to announce the results of its Resource and Reserve upgrade using all available data for the Company’s mines and deposits as reported by Wardell Armstrong International, Snowden Group (JORC Code compliant updates) and Ricardo Valls (CIM compliant updates). These estimates supersede all previously announced estimates. 

Highlights

  • Combined JORC and CIM Code Compliant Proved and Probable Ore Reserves of 12.7 Moz, up 54% from 8.2 Moz in June 2011
  • Total JORC Code and CIM Compliant Mineral Resources of 29.5 Moz (up 30% from 22.7 Moz in June 2011) of which 16.7 Moz are Measured and Indicated Resources (up 39% from 12.0 Moz) and 12.7 Moz are Inferred Resources (up 20% from 10.6 Moz)
  • Ore Reserves were estimated using a gold price of US$1,250/oz. The previous estimate in June 2011 was at a price of US$1,100/oz. Given the increased grade at nearly all projects, the substantial growth in reserves and resources is attributable primary to our exploration works, and only marginally to change in price assumptions
  • The average gold grade in Ore Reserves shows a decrease from an average 1.30 g/t to 1.15 g/t since the last update, due to inclusion of the Resource base at Gross (a low grade robust heap leach project in Russia with low stripping ratio and high recoveries)  in the Company’s Reserves. Excluding the Gross project, average reserve grade has increased from 1.30 g\t to 1.59 g\t

The 2011 exploration programme of $115 m showed encouraging results across all regions and mines:

  • Gross: following an effective exploration programme the Company has transferred 3.2 Moz of Mineral Resources into Ore Reserves at an upgraded average grade of 0.64 g/t. Mineral Resources significantly increased by 46% to 8.3 Moz.
  • Bissa: Mineral Resources up 10%. New resources estimated near the Bissa mine combining five different satellites with total Mineral Resources of approximately 1.7 Moz, including 1.0 Moz of Resources at a grade of 0.77 g/t at Bouly.
  • Lefa; the mine exploration programme was highly successful, with growth in Resources to 7.8 Moz at higher grades for almost all Lefa deposits and pits (up 37% from 5.7 Moz in last update). There is significant potential for further Reserve and Resource growth. 
  • New gold discoveries: a quality ore body of 0.8 Moz at a grade of 1.74 g/t was discovered at our Uryakh deposit, 60km from the Baikal-Amur Mainline railway in the Irkutsk region. 

Key exploration priorities in 2012 – 2013 will include:

  • Continued life of mine extension at Buryatzoloto, Taparko and Neryungri;
  • Initiation of drilling programme at Berezitovy, conversion of a significant Mineral Resource at Suzdal;
  • Further Resource definition at Bouly and Uryakh;
  • Bissa satellite drilling 
  • Continuation of Gross Resource conversion; and
  • Regional exploration in Russia and Burkina Faso

JORC Reserves and Resources Summary Table

1 January 2012, koz

1 June 2011, koz

Change

Reserves

Proved

3,454

3,627

(5%)

Probable

9,203

4,565

102%

Total reserves (P+P)

12,657

8,193

54%

Mineral resources

Measured

4,172

4,472

(7%)

Indicated

12,571

7,571

66%

Inferred

12,726

10,608

20%

Total resources (M+I+I)

29,469

22,651

30%

Note:  * Includes the CIM reserves and resources at the Buryatzoloto properties, and reserves for Gross reported by Snowden.


Nikolai Zelenskiy, Chief Executive of Nordgold commented:

“This combination of a significant rise in Reserves and Resources together with the results of a very successful exploration programme gives us real confidence in our ability not just to meet our near term forecasts, but to deliver on our ambition to become a truly world class gold producer. The results of our 2011 exploration programme have shown the substantial potential for further reserve upgrades at existing Nordgold mines, as well as the high prospects of our Greenfield projects. This update is a powerful endorsement of our strategy of investing in exploration and of our proven ability to successfully grow our Resource base and lengthen the life of our portfolio.”  

Philip Baum, Chairman of Nordgold commented:

“This is a significant announcement for Nordgold as it highlights very clearly the highly attractive growth potential of the Company and demonstrates our ability to convert Resources into Reserves. These upgrades across the portfolio illustrate the strength of our asset base which will enable us to create long term sustainable value for our shareholders.” 

The JORC Resource Estimate in the Context of the Overall Exploration Potential 

Nordgold has a demonstrated track record of successfully growing its resource base. Today’s announcement clearly demonstrates Nordgold’s ability to deliver on exploration projects which will extend asset life and further broaden the product portfolio in our key target emerging markets. The results at both Bissa and Gross highlight the exciting potential of those projects, while the Company has already delivered on its extensive exploration programme with today’s announcement of new discoveries. The Company has a portfolio of 30 early-stage and advanced exploration properties and we look forward to providing further updates on the progress of these projects in due course. 

Telephone conference 

Nordgold will host a webcast and conference call for analysts and investors on 24 April at 1 pm London time. CEO Nikolai Zelenskiy will present the Company’s JORC results and provide further details of Nordgold’s growth plans. At the same time we will be happy to announce our Q1 2012 operational results and answer questions related to the JORC results.

Registration details:

Conference Title: Nordgold Presentation of Operational Results for the First Quarter of 2012
Conference ID: 4533259

Please use one of the following dial-in numbers to connect to the conference:

Russia
8-10-800-2-198-4011 (toll free)

United Kingdom 
+44-20-7190-1590 (local access)
0800-358-5258 (toll free)

USA
+1-480-629-9678 (local access)
+1-877-941-8633 (toll free)

Germany
+49-6971-044-5555 (local access)
0800-330-4463 (toll free)

Webcast

The press and analyst conference will also be broadcast live over the Internet, and will be available as a recording after the conference. The live service also allows for written questions to be submitted. 

http://www.cyber-presentation.de/cgi-bin/visitors.ssp?fn=visitor&id=1717

You can connect to the conference or view its recording using a mobile phone, iPhone or iPad. 

Materials

The Company’s JORC report press release and the following reports by Wardell Armstrong International and in relation to the Tabornoe and Gross Assets, by Snowden Group will be available on the Company’s official website: www.nordgold.com:

1. Update CPR Report on the Assets of Nord Gold for Burkina Faso, Guinea, Kazakhstan and the Russian Federation
2. Gross Ore Reserves statement

A press release dated 16 April 2012 in relation to the Irokinda and Zun-Holba assets of High River Gold Ltd and the following reports on those assets by Ricardo Valls, P. Geo are available from the website of High River Gold Ltd at www.hrg.ca:

1. Technical Report on the Irokinda Project, Republic of Buryatia, Russia Federation
2. Technical Report on the Zun-Holba Project, Republic of Buryatia, Russian Federation.

Enquiries:

Nordgold
Alexey Shchedrin
Head of Financial Communications & Investor Relations

Tel: +7 (917) 502 2048

Maitland
Peter Ogden
James Devas

Tel: +44 (0)20 7379 5151

Jefferies Hoare Govett
Peter Bacchus     

Tel: +44 (0)20 7029 8000
Nick Adams

For further information on Nordgold please visit the company’s website –  http://www.nordgold.com

Notes to Editors

About Nordgold
Nordgold (LSE: NORD) is an established pure-play emerging-markets gold producer, with operations in Burkina Faso, Guinea, Russia and Kazakhstan.

Nordgold is a young and dynamic company. Since its establishment in 2007, Nordgold has expanded rapidly through acquisitions and organic investment, achieving a rate of growth unmatched in the industry during that period. By the end of 2011 the Company’s gold production has reached 754 Koz.

Nordgold has eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licenses.

Nordgold’s target is to produce 1 Moz of gold from existing mines and development projects by the end of 2013. This target is underpinned by company’s gold reserves of 12.7 Moz and resource base of 29.5 Moz of gold and 103 Moz of silver.

About JORC Compliant Reserves/Resources

Mineral resources
 
A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. Mineral Resources are further sub-divided, in order of increasing geological confidence, into inferred, Indicated and measured Categories.
 
Inferred Mineral Resource is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological/or grade continuity. It is based on information gathered through appropriate techniques from location such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability.
 
Indicated resources are simply economic mineral occurrences that have been sampled (from locations such as outcrops, trenches, pits and drill holes) to a point where an estimate has been made, at a reasonable level of confidence, of their contained metal, grade, tonnage, shape, densities, physical characteristics.
 
Measured resources are indicated resources that have undergone enough further sampling that a 'competent person' (defined by the norms of the relevant mining code; usually a geologist) has declared them to be an acceptable estimate, at a high degree of confidence, of the grade, tonnage, shape, densities, physical characteristics and mineral content of the mineral occurrence. 

Mineral reserves
 
Mineral reserves are resources known to be economically feasible for extraction. Reserves are either Probable Reserves or Proved Reserves.
 
A Probable Ore Reserve is the economically mineable part of Indicated, and in some circumstances, a Measured Mineral Resource. It includes diluting material and allowances for losses which may occur when the material is mined. A Probable Ore Reserve has a lower level of confidence than a Proved Ore Reserve but is of sufficient quality to serve as the basis for decision on the development of deposit.
 
A Proved Ore Reserve is economically mineable part of a Measured Mineral Resource. It includes diluting materials and allowances for losses which occur when the material is mined.
 
A Proved Ore Reserve represents the highest confidence category of reserve estimate. The style of mineralization or other factors could mean that proved Ore Reserves are not achievable in some deposits.

CONTACTS

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Irina Dormidontova

RECRUITMENT MANAGER
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tel.+7 495 644 4473