Nordgold PLC, the internationally diversified gold producer, announces that its flagship Gross mine (Yakutia, Russia) will have the fully mobilised and commissioned additional mining equipment required to deliver the mining volumes of Phase 1 of the Gross Expansion project by the end of the second quarter of 2021. The expansion of the primary mining fleet from five to seven primary loading units (two new Komatsu PC3000 shovels), with associated trucks and drills and auxiliary equipment, is a key deliverable of the two year $58 million investment of Phase 1 of the Gross Expansion project that was launched in 2020.
Total mining volumes will be increased to supply ore to an increased processing capacity of approximately 18 Mt of ore per year from the third quarter of 2021; up from 14.5 Mt of ore processed in 2019. Gross has acquired ten new off-road mining trucks, four of which have already been commissioned and six of which are expected to be delivered onsite by June 2021. In addition, the two new excavators and two drilling rigs were acquired and commissioned in 2020 and first quarter of 2021. Nordgold told IM that the trucks include nine new Komatsu HD1500 trucks and one Komatsu HD785 truck with the drills encompassing two Epiroc DM-45 units.
Vitaly Zagan, General Manager of the Gross mine, said: “Ramping up our mining fleet capacity is a core element of our Gross expansion project, and we are pleased to now have the equipment secured to deliver on our ambitious plans for this high performance open pit operation. Other important elements are also on track, including the installation of additional processing equipment, and the expansion of auxiliary infrastructure, to reach the planned expansion in the third quarter of this year.”
The Gross Expansion project consists of two phases, with the increase in mining and processing capacity to 18 Mt in Phase 1. As part of Phase 2, Nordgold is currently on track to complete a Feasibility Study (FS) by end of 2021 to further increase the Gross mine’s mining and processing capacity up to approximately 26 Mt of ore per year from 2023. The recently finalised Preliminary Economic Assessment (PEA) indicated that the Phase 2 Gross Expansion project would require a capital investment of approximately $208 million, and lead to a weighted average annual production of approximately 350,000 oz of gold between 2025 and 2035 at an all-in sustaining cost (AISC) of approximately $740/oz (subject to confirmation by the FS).
Nikolai Zelenski, CEO of Nordgold, said: “The Gross Mining Region is a highly prospective gold region and is central to our longer term production profile. With the existing Gross and Taborny mines, as well as the huge potential for further expansion of Gross and the development of the new Tokko project which benefits from the same low cost characteristics of the Gross mine, Nordgold is very well placed to maintain its strong momentum.”
