Location and History

BEREZITOVY

The Berezitovy gold mine is located in the Amur region of the Russian Federation, approximately 50 km north of Urusha (a town of 5,000 people) and is accessible via an all-season road, most of which is paved. The mine is located just 50 km from the Trans-Siberian railway and 100 km from Skovorodino railway station.

Commercial production began at the Berezitovy mine in 2007. The Berezitovy was acquired by Nordgold in late 2008, as part of the controlling interest in High River Gold. Nordgold currently holds a 100% interest in High River, which in turn holds a 99.91% interest in Berezitovy.

In 2015, Berezitovy had a record year, increasing gold production by 2% YoY to 125.3 koz including approximately 4.5 koz of gold doré produced and unrefined at the end of 2014, which was refined in Q1 2015

Operating and Financial Highlights

2015 2014 2013 2012 2011 2010
Run of mine (kt) 14,715 14,289 14,276 16,588 15,844 15,532
Waste mined (kt) 13,605 12,868 12,217 14,598 14,086 13,693
Ore mined (kt) 1,110 1,421 2,059 1,990 1,758 1,839
Stripping ratio (tn/tn) 12.26 9.05 5.93 7.3 8.0 7.4
Ore processed (kt) 1,684 1,898 1,741 1,635 1,391 1,050
Grade (g/t) 2.23 2.26 2.20 2.50 2.62 2.22
Recovery (%) 89.5 90.2 89.5 90.2 89.8 89.2
Gold production (koz) 125.3 122.8 120.3 116.3 107.1 71.4
Gold sold (koz) 129.5 118.5 120.1 116.4 107.0 73.0
Average realised gold price per ounce sold (US$/oz) 1,158 1,263 1,372 1,663 1,553 1,235
Revenue (US$/m) 150.0 149.6 164.8 193.6 166.2 90.1
EBITDA (US$/m) 93.0 76.7 64.6 114.4 90.9 32.4
Total Cash Cost (US$/oz) 430 572 783 625 591 713
AISC (US$/oz) 617 713 888 - - -

Ore Reserves and Mineral Resources Summary (31 December 2015)

Category Ore (Kt) Grade (g/t) Au (Koz)
RESERVES
Proven and Probable 11,946 1.59 612
RESOURCES
Measured and Indicated 10,614 1.54 525
Inferred 3,256 1.47 154
Inferred Underground Resources 774 3.7 92


For more information, please see Mineral Resources and Ore Reserves Press Release

Technology

The Berezitovy mine is a well-established open pit. The Berezitovy processing plant contains crushing, SAG and ball milling and CIP circuits, a tailings water filter plant and a dry tailings storage facility, a water reservoir and potable water wells located on the Khaikta River, sanitary landfills, a sewage treatment plant, mine water settling ponds. Berezitovy has recently expanded to include a heap leach operation to treat low-grade ore.

Milling and Classification
Nordgold’s open pit operations use conventional surface mining methods involving drilling and blasting, followed by a load and haul process allowing for selective mining of the ore. Ore from the pit is then transported to a designated stockpile and fed into a crushing circuit. The crushed material is then moved onto a conveyor, which delivers the ore to a grinding circuit consisting of SAG and ball mills. The milled product is then thickened and leached into a CIP circuit.
Cyanide leaching and sorption
The cyanidation of the milled ore is carried out in the CIP or CIL circuit. During the CIP or CIL stage, pulp flows through several tanks where sodium cyanide and oxygen have been added to dissolve gold into solution. In the absorption stage, this solution flows through several tanks containing activated carbon. Gold then attaches onto the activated carbon, which flows counter current to the pulp, while screens separate the barren pulp from the gold-loaded carbon.
Elution
The final gold loaded carbon is removed and washed before undergoing elution. Elution is achieved by introducing the gold loaded carbon to a solution of sodium cyanide at a high temperature (>110°C) and under high pressure. This results in the reversal of the attachment process, with the gold detaching from the carbon back into solution. This produces a small volume of solution with a high gold concentration.
Electrowinning
The gold loaded eluate solution that emerges from the elution process is passed through electrowinning cells, where gold is deposited onto the cells’ cathodes.
Smelting
The cathodes then undergo a smelting process, further refining the gold and leading to the eventual production of gold ingots suitable for transport to a refinery.

2016 Deliveries

  • Berezitovy will slightly decrease gold production due to processing lower grade ore (c. 2.0 g/t) as the mine completes mining from the Stage 1 and starts ore production from Stage 3, with mill throughput supported by ore supply from historical stockpiles.
  • The mine plans to launch a 4th heap leach pad in H2 2016.
  • Feasibility Study for underground mining operations at Berezitovy will be designed and submitted to the authorities.
  • Sampling, mapping and a LIDAR survey are planned for the large Khaikta licence north of Berezitovy. An initial drilling programme is also envisioned should the results be encouraging.

CONTACTS

Olga Ulyeva


Head of Media Relations
tel.+7 495 644 44 73 #707 6632

ROMAN MEZHUEV

RECRUITMENT MANAGER
tel.+7 495 644 44 73

OLEG BAZALEEV

HEAD OF SUSTAINABLE DEVELOPMENT PROJECTS
tel.+7 495 644 4473 #707 6746