Nordgold Opens Third Russia Gold Mine

Russian gold miner Nordgold has formally launched its third mine – the new Gross operation in Yakutia, Russia, which will turn the company into a one-million-ounce a year producer, The Mining Journal reported.

The Gross mine will operate for 17 years and is expected to add 200 000 oz/y of gold to Nordgold’s production profile.

Construction of the mine began in June 2016 and the operation was launched this week at a ceremony during the Eastern Economic Forum in Vladivostok. Nordgold said the $250 million project was done on time and on budget.

“I believe we have firmly cemented Nordgold as a truly world-leading developer of new gold mine assets. This gives us even greater confidence as we look to develop our Montagne d’Or asset in French Guiana, which is expected to be a major catalyst for much needed economic growth in the country,” said Nordgold CEO Nikolai Zelenski.

The Montagne d’Or project hosts proven and probable reserves of 2.75-million ounces of gold, with considerable expansion potential. In March last year, Nordgold announced a positive bankable feasibility study for the Montagne d’Or project, demonstrating that it has the potential to produce an average of 237 000 oz over the first 10 years of mine life, at an average grade of 1.73 g/t gold, resulting in an average all-in sustaining cost of $749/oz.

Nordgold launched two Burkina Faso mines – Bissa mine and Bouly – in 2013 and 2016, respectively.

The company, 99%-owned by billionaire chairman Alexey Mordashov, Russia’s second-richest man and chairman of Severstal Group, delisted from the London Stock Exchange in 2017.