As part ofits strategy for the exploration and development ofnew mineral deposits inthe territory ofthe Russian Federation MMC Norilsk Nickel provides the information onthe ore reserves and mineral resources atthe Bystrinskoye deposit. The audit ofthe ore reserves and mineral resources was conducted byMicon International Co. Limited, independent consultant, inaccordance with the principles ofJORC Code, and the reported data are stated asof October 1, 2006. The Bystrinskoye deposit islocated inthe Chita Region, south-east ofRussia. Local ore isof multi-component nature and contains such metals ascopper, gold, silver and iron.
Mineral resources | Ore volume | Metal content | Metal volume | ||||||
Cu | Au | Ag | Fe | Cu | Au | Ag | Fe | ||
Measured and indicated | 293,71 | 0,74 | 0,85 | 4,97 | 23,70 | 2 187,3 | 8 028,1 | 46 954,3 | 69 624,2 |
Inferred | 55,13 | 0,37 | 0,50 | 6,12 | 12,33 | 203,3 | 892,1 | 10 847,7 | 6 796,6 |
A detailed exploration program for the flanks and deeper levels ofthe Bystrinskoye deposit has been developed, and its implementation may result inan upward re-evaluation ofcurrently known resources. Itis planned tospend USD11 million onthe exploration works onthe deposit in2007-2009.
Slightly sloping ore bodies are suitable for cost-effective open pit mining. Current works are focused onthe preparation ofdocumentation required for further project development, which will include the construction ofintegrated mining/concentration plant. The ore processing capacity ofthe new plant will be10Mtpa, and mining operations are expected tocommence in2011-2012.
The Bystrinskoye deposit isamong other deposits being developed byMMC Norilsk Nickel under the joint project with the Investment Fund ofthe Russian Federation Creation oftransportation infrastructure todevelop raw material base ofthe south-east ofthe Chita Region. Pursuant tothe Regulation ofthe Government ofthe Russian Federation No. 1708ofNovember 30, 2006, in2007-2011, onthe terms ofstate-private partnership the Investment Fund ofthe Russian Federation will finance 69% ofthe construction cost ofthe railway connecting the deposits inthe south Chita region with the Trans-Siberian Railway. MMC Norilsk Nickel will invest the remaining 31%. The total amount offinancing isestimated asUSD1,981million.
The new transportation route will substantially enhance the development ofboth the region and the deposits tobe developed byMMC Norilsk Nickel. The deposits are rich incopper, gold, silver and iron. The cost ofthe complete exploration program tobe carried out for those deposits in2007-2010 will total USD90 million.