Produktionen

Update regarding the project
SStar Gold Resources ABs are focusing on developing exploitation and exploration licenses in the Chita region in Russia. The Kadara license was acquired beginning this year with the anticipation that we should receive the complete exploitation license during this year and that this would be more or less just a formality. In the due diligence process and in contacts with responsible authorities it seems as if the granting of the Kadara license might be further delayed or might not even take place.

The organizational plan includes four stages and describes the schedule for implementation of the investment project “Kadara”. During the first and second stage, the investment funds shall be developed and the third stage shall see the gold-processing complex reach its design capacity and the Company shall become fully self-repaying. The fourth stage shall start the scheduled use of the deposit provided availability of industrial gold mining.

Stage I. Continuation of Exploration Works. Design. Experimental Production

Exploration Work.
The short-term objective of the Company (until the end of 2018) is continuation of prospecting and evaluation work in order to prepare and submit to the Department of Mineral Resources for the Trans-Baikal Territory (Zabaykalnedra) a report including calculation of gold and associated components of categories С 1 and С 2, and the expected resources of category Р 1.

To this end, the Company plans the following works:

  • Confirmation of the field model reliability: complex aerogeophysical studies, relief scanning, route geological studies of 1: 10000 scale;
  • Correction of the contours of ore bodies: drilling of planimetric and contour holes, penetration of surface mines, detailed geophysical works;
  • Definition of resources and reserves: testing of mine workings and core of wells, subsurface geometrization, and preliminary estimation of reserves.

In order to increase the short-term value of assets, with relatively low investment costs, the Company intends to carry out works according to the following program:

  • Exploration of one of the six sections of the licensed area (“Kadara”) – the Kadara site in order to prepare the approval of gold reserves for categories С 1 – 20 tons, С 2 – 50 tons and their subsequent recognition by the Federal Budgetary Institution “State Commission for Mineral Reserves” (GKZ);
  • Exploratory and evaluation work on the remaining five sites in order to prepare the approval of gold resources for category Р 1 – 107 tons.

Acquisition of Mining Machinery and Equipment.
During 2017-2018, the following mining machinery and equipment shall be purchased:

  • Emining dump truck Komatsu HD325-6 – 4 pcs.,
  • excavator Hitachi ZX-800 – 1 pc.,
  • front loader Komatsu WA600-3 – 1 pc.,
  • wheeled bulldozer Komatsu WD500-3 – 1 pc.,
  • drilling equipment for exploration of minerals (units, machines, bits, drums and other equipment for prospecting works (concentrators, trays, flushing devices, screens, sluices, etc.),
  • mining equipment (drilling rigs, pumps, pipes, etc.).

Construction of Quarry.
Initially, construction of a quarry is planned on the Kaltagay site. Before starting the construction of the quarry, the specifications of the main technological processes shall be calculated i.e. drilling of blast holes, blasting schemes, mining of rock mass, quarry transport, dumping and reclamation. The capacity and the required mining equipment have been calculated. The maximum discounted income from the activity of the enterprise shall serve as a criterion for determining the final boundaries of the quarry. Specific values of production areas shall be determined by calculation, with due account of the general business expenses and depreciation charges. Based on the optimization results, the quarry with transport communications shall be built at the end of the development. The ore productivity of the quarry is determined as equal to the projected capacity of the stage-by-stage introduction of the gold recovery complex, thus, the maximum productivity will not exceed the actual one based on the mining conditions – 1,000,000 tons of ore.

According to the standards of technological design for these conditions, a year-round operating mode of the quarry is adopted. The development of the deposit will be conducted by a strictly dependent development system with external heaping, which takes into account the degree of dependence of mining, overburden and mining preparations on each other in time and space, the direction of excavation and the formation of rock dumps. Preparation of rock mass to the excavation is done with the drilling and blasting method. The technology for the drilling and blasting operations and the type of drilling equipment used for it have been adopted with due account for the physical and mechanical properties of the rock massif.

Trial Gold Mining.
In 2018, during the exploration, a pilot gold mining in limited quantities is planned, which will result in 150 kg of gold.

Stage II. Continuation of Exploration Work. Construction of the 1st Stage of the Gold-Processing Complex. Construction of a Small Hydroelectric Power Station

Exploration Works.
The list of geological prospecting works includes the following:

  • Denser drilling (250х50 m);
  • Drilling of hydrogeological and engineering-geological wells for the quarry;
  • Development of a feasibility study of field conditions;
  • Drilling of hydrogeological and engineering-geological wells for the quarry;
  • Development of a feasibility study of field conditions;
  • Calculation of industrial ore reserves with including reflection thereof with the Federal budgetary institution “State
  • Commission for Mineral Reserves” (GKZ). The estimated С1 reserves are 40 tons, С2 – 50 tons, Р1 resources – 87 tons;
  • Drawing up a field development project.

Acquisition of Mining Machinery and Equipment.
During 2019-2020, of the following mining equipment and equipment shall be purchased:

  • mining dump truck Komatsu HD325-6 – 9 pcs.,
  • excavator Hitachi ZX-800 – 3 pcs.,
  • front loader Komatsu WA600-3 – 2 pcs.,
  • wheeled bulldozer Komatsu WD500-3 – 2 pcs.,
  • Development of a feasibility study of field conditions;
  • Drilling equipment for exploration of minerals (units, machines, bits, drums and other equipment for prospecting works (concentrators, trays, flushing devices, screens, sluices, etc.),
  • mining equipment (drilling rigs, pumps, pipes, etc.).

Construction of Quarry.
The construction of a quarry is planned in the Kadara area in three stages. Before starting the construction of the quarry, the calculation of the parameters of the main technological processes and the calculation of the productivity and the required amount of mining equipment shall be performed. The maximum discounted income from the activity of the enterprise shall serve as a criterion for determining the final boundaries of the quarry. Specific indicators for production areas shall be determined by calculation, with due account for the general economic expenses and depreciation charges. Based on the results of the optimization, the quarry with transport communications shall be built at the end of the development.

The ore productivity of the quarry shall be equal to the design capacity of the stage-by-stage introduction of the gold extraction complex, thus, the maximum productivity will not exceed the actual mining conditions – 2,500 thousand tons of ore.

In accordance with the technological design standards for these conditions, a year-round operating mode of the quarry is adopted. The development of the deposit will be carried out by a strictly dependent mining system with external heaping, which accounts for the dependence of mining, overburden and mining preparations in time and space, the direction of ore excavation and the formation of rock dumps. Preparation of rock mass for excavation is carried out by the drilling and blasting method. The technology for the drilling and blasting operations and the type of drilling equipment used in this regard have been adopted with due account for the physical-mechanical properties of the rock massif.

First Stage of the Gold-Processing Complex Construction.
The site for construction is selected outside the mineralization zone, it has a continuous gradient (with rectilinear sections) of about 10-120 southwards. Lowering the level of the surface (the slope of the terrain) allows for better use of gravity transportation of products from shop to shop, as well as to the tailing pond.

The location of the gold-processing complex nearby the developed field will not require large capital expenditures for construction and construction of transport communication means (roads and, in the long run, railroad tracks) and will minimize the establishment of partnership with suppliers of equipment and chemical reagents, as well as with other enterprises.

The gold-processing complex will consist of the main production areas, workshops, offices and support services:

  • the department (shop) for acceptance and crushing of ore, which includes the full scope of facilities, structures and technological units – starting from intake devices of the ore entering the factory, to the conveyors for the ore supply to the hopper of the crushing unit, i.e., all stages of crushing, screening, reloading devices, conveyors, etc.;
  • the main processing building, which includes units and sections for grinding, dressing, hydrometallurgy, preparation, storage and shipment of the products;
  • the facility for reception, storage and preparation of reagents, as well as regeneration and melting;
  • tail facilities, which includes tailings decontamination, tail hydro transport, tailing dumps and recycling water supply systems;
  • support services, including laboratories (factory and technical control departments), compressor, repair and storage facilities;
  • engineering support of the buildings and structures (administration and household premises, water supply, heat and power supply).

The structure of the gold-processing complex shall follow the processing line in accordance with the developed regulations, the capacity of the enterprise, the operating mode and the construction and layout decisions. It should be noted that studies have shown that the best technology for processing of ore deposits is the gravity-cyanide technology, which ensures high gold recovery (85.8%) with acceptable costs. The obtained enrichment figures will be included in the technological regulations.

Before the construction of the small hydroelectric power station is completed, the power designed supply of the gold-processing complex shall a temporary connection to the unified power system of the Trans-Baikal Territory.

The equipment for the gold-processing complex shall be supplied by scheduled deliveries from the selected manufacturers of main process equipment, auxiliary equipment, components and materials, in accordance with the project documentation.

The indicative list of construction and installation works is as follows:

  • site preparation
  • making foundations for installation of equipment and structures of buildings
  • laying of networks
  • erection of buildings and structures
  • installation of equipment in accordance with the project
  • connection of equipment to the sources of power supply resources and control communications
  • preparation of as-built documentation

The indicative list of commissioning works is as follows:

  • reaching the project capacity of the first stage of the gold extraction complex with achievement of guaranteed amounts
  • alignment and adjustment of the system elements
  • debugging technological links between the elements of the complex
  • carrying out individual tests and commissioning works
  • conducting complex testing (trial operation) of the equipment for ore preparation and gravity-cyanide enrichment

As a result of Stage II of the Organizational and Production Plan the first stage of the gold-processing complex with a capacity of 1,750 thousand tons of ore per year should be put into operation.

Industrial Gold Mining.
In 2019-2020, as the facilities of the gold-processing complex are gradually commissioned, the expected commercial gold mining shall be 2,250 kg.

Stage III. Construction of the 2nd Stage of the Gold-Processing Complex

Construction of the 2nd Stage of the Gold-Processing Complex.
In 2021, the Company plans to refund 23,642.85 thousand USD received from net profit in order to complete the second construction stage of the gold-processing complex using complete modules, and thus, by the end of Q1, 2021, commission the gold recovery complex with the project capacity of 3.5 million tons of ore per year.

Industrial Gold Mining.
In 2021, as the facilities of the gold-processing complex are gradually commissioned, the expected commercial gold mining shall be 4,250 kg.

Stage IV. Field Development

The fourth stage includes further development of the Kadara gold deposit during the period from 2022 to 2031, i.е. until the expiry date of the current license. The resource base can be increased by purchasing adjacent license areas.

Annual development figures:

Production volume – 8.5 tons of gold

Revenue – USD 330 mln

EBITDA – USD 202.7 mln

The small hydroelectric power station with the capacity of 12 MW will be able to provide all required electricity to both the gold extraction complex and a number of residential and industrial facilities in the region.

Adress

SStar Gold Resources AB (publ)
Box 70396
10724 STOCKHOLM

Besöksadress
World Trade Center, Klarabergsviadukten 70, Stockholm

Telefon 08- 506 36 388
Fax 08- 506 362 01

organisationsnummer: 556805-1519

CEO
Karl-Axel Waplan, direkt 070-510 42 39

Emissionsinstitut och Aktieboksansvarig

Nordiska Värdepappersregistret
Box 3116
S-400 10 Göteborg
info@nvr.se

Kontakt
Henrik Kristensen, Telefon: +46 733 31 11 03

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