Kluchevskoye Gold Project
Project Overview (Extract from SUN Gold website)
Kluchevskoye gold deposit is located in the Chita region of Eastern Russia, 33 km southwest of the town of Mogocha (the nearest railway station on the Trans-Siberian railway line). The region has international borders with China and Mongolia to the south. The principal industries in the region are mining and timber. The region is also known to have several 'world class' gold deposits which were extensively developed in the past.
The Kluchevskoye gold deposit was first discovered in 1903 and explored during the 1930s. Kluchevskoye was also exploited during the Soviet era through underground mining and later extensively using open pit mining methods. From the 1960s to the 1970s in excess of 38 t of gold was produced from over 12 Mt of ore and the open pit reached a depth of 240 m. During the period 1977 - 2003 approximately 8.9 Mt of ore at 1.68 g/t Au were milled. Production was stopped in 2003, as a result of the low gold price prevailing at the time. Total historical production from the deposit is 1.4 Moz.
SUN Gold acquired 100% of the deposit in December 2006. The Kluchevskoye gold deposit was identified by SUN Gold as a significant opportunity to develop a large-scale low cost gold mine. The project represents an attractive new gold mine, centrally located within an emerging world class mineral province.
The current JORC Compliant mineral resource estimate for the Kluchevskoye gold mine:
Classification Tonnes (Mt) Grade(g/t) Au (Moz)
Indicated 71.72 1.39 3.21
Inferred 33.17 1.26 1.35
Inferred 68.13 1.51 3.29
Total 173.02 1.41 7.85
Resource estimation is based on significant volume of information. Historical exploration comprised of 60000 m3 of trenching, 16800 m of underground adits and 33000 m of drilling. This supplemented with 15000 m of new drill core data. There is potential to significantly increase the current resource with exploitation of considerable low grade stockpiles and delineation of new resources through extensions of the current orebody. Resource model is intended for a bulk mining option. A 0.7 g/t Au cut off has been used. Resource estimates show a potential for a very large scale (+10 MTPA) operation.
Considerable tonnage of sulphide and oxide material is contained in historical waste dumps. This could support a heap leach operation for early production and cash flow.SUN Gold recently completed 15000 m of new drilling.
Current drilling of the deposit has recorded significant high grade intersections over broad intervals which indicate that the deposit is continuing to expand at depth, both towards the west, north and northeast and that the overall grade of the deposit is increasing.