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Thursday, 19th June 2008 (1304 views)

Highland Gold Mining is set to invest $500 million to $550 million in order to launch a gold deposit in Russia.

The British company made the decision after reviewing a feasibility report on the Maiskoye deposit in the Chukotka region of eastern Russia.

The study predicts that at full production the deposit will produce between 250,000 and 275,000 ounces of gold per year.

Henry Horne, chief executive officer of Highland Gold, said: "In 2010 Mayskoye is scheduled to become the third producing asset of Highland Gold after Mnogovershinnoye and Novoshirokinskoye.

"As one of the largest undeveloped gold deposits in Russia, this will transform Highland Gold, resulting in higher gold output, higher production volumes and higher cash contributions."

The company announced that it plans to use Aker Solutions to manage the construction, engineering and procurement of the project.

Highland Gold was in the news recently due to the involvement of Roman Ambramovich with the sale of the Maiskoye deposit to the mining company, according to metal.com.

Last year Ambramovich bought 40 per cent of the company for $400 million.

 

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