Severstal subsidiary wins exploration and extraction rights for the Ostantsovy gold field in Irkutsk region

Severnaya Zolotorudnaya Kompaniya (Northern Gold Mining Company), a subsidiary of Severstal, has won an auction for the geological exploration and gold extraction rights at the Ostantsovy field in Irkutsk region in Russia.

Severnaya Zolotorudnaya Kompaniya’s winning bid was 45 mln roubles ($1,9 mln).at the auction held by the Irkutsk Department of the Russian Subsurface Resource agency on 25 April, 2008.

Ostantsovy is situated in the Bodaybo district of Irkutsk region. Estimated category P3 resources in this field are predicted to be 18 tons of gold. The license permits geological exploration and extraction for 25 years with  prolongation rights.

Severstal already owns various gold mines and exploration and extraction licenses in the Irkutsk and Chita regions, in the republics of Saha-Yakutiya and Buryatiya in Russia, and in the eastern Kazakhstan. The mines total production in 2007 was 5.3 tn, and the summary resource base, including the new field, is about 410 tn of gold.