Severstal wins exploration and extraction rights for the Sagan-Golsky gold field

Severnaya Zolotorudnaya Kompaniya, a subsidiary of Severstal, the Russian mining and steel company, has won an auction for the geological exploration and gold extraction rights at the Sagan-Golsky gold field in the Buryatiya Republic. The auction was held by the Subsurface Management Department of the Buryatiya Republic on 20 September, 2007.

Severnaya Zolotorudnaya Kompaniya’s winning bid was 2.6 m roubles from a starting price of 1.5 mln roubles. According to Severstal estimates, the Р1+Р2 gold in this field is predicted to be 60 tn. The license lasts for 25 years.

According to the terms of the auction, Severnaya Zolotorudnaya Kompaniya can begin geological exploration of the field in 15 months time. Approval for the mine’s construction project is due no later than January 2014.