London, United Kingdom, 29 September 2021 - Nord Gold plc ("Nordgold" or the "Company"), the internationally diversified gold producer, is pleased to announce it has completed Phase 1 of the expansion of mining and processing capacity of its largest mine, the flagship Gross mine (Yakutia, Russia) to 18 million tonnes of ore per year (mtpa), up from 16.0 million tonnes of ore processed in 2020.
Nordgold has successfully built an established position in the world class, highly prospective Gross Region, which includes Gross, as well as the Taborny mine and the Tokko development project. Launched in 2018 with the nameplate capacity of 12 mtpa, the Gross mine has developed quickly to become Nordgold’s largest mine, and one of the largest gold mining operations in Sakha Republic.
The total capital expenditure on the Phase 1 of Gross expansion was approximately US$50 million, 15% lower than initially planned, again highlighting Nordgold’s track record of completing major development projects in line with, or below budget. Capex savings were achieved due to innovative engineering decisions, construction materials costs optimisation and lower than planned mining fleet cost.
The Phase 1 expansion consisted of:
Work on the feasibility study for the Gross Phase 2 expansion project to increase mining capacity to 26 mtpa is on schedule and expected to be completed by the end of 2021. The production expansion at Gross is anticipated to add approximately 130 thousand ounces of gold production annually once Phase 2 is completed in early 2024, thereby increasing the Gross mine annual production to approximately 350 thousand ounces.
In addition, Nordgold continues development of the new Tokko project, adjacent to the Gross mine. It is expected that the project Feasibility Study will be completed by the end of 2021, with construction beginning in 2022.
As a result, by 2025 the Gross Region will contribute over 50% of Nordgold’s production. Nordgold has ambitious growth plans and is targeting approximately 20% production growth and a 20% improvement in AISC over the next five years, primarily as a result of the development of the Gross Region along with lower costs at its African mines.
Having worked together with Columbus to successfully develop a powerful and convenient software-based management tool to support the financial management of our own operations, we recognized we had built a system that could benefit other companies in the sector as well, presenting an interesting commercial opportunity for both parties. What sets CN Planning Analytics apart is its unique focus on gold mining company performance and the fact it is adaptable to all mining and processing technologies. At Nordgold, we continue to invest in our IT capabilities which helps us drive performance, in particular as we move forward on our ambitious growth plans in the Gross region in Russia, where we have built a market leading position. Dmitry MarkeevDirector of Transformation and Business System Development of Nordgold
I am delighted to report we have completed Phase 1 of our ambitious Gross expansion project. Once again, I would like to send my congratulations to the team on the ground who continue to beat expectations by bringing this project in on time and ahead of budget. The success of Phase 1 and a growing reserve footprint of Gross gives us confidence in delivering Phase 2, which will see further growth from this world class mining asset. Our position in the Gross region is a key point of difference for Nordgold — the region is a low cost, low risk, high quality region and in Tokko, we are primed to deliver on yet another first class new development opportunity. Once Tokko is complete, the Gross region will account for over 600 thousand ounces of annual production, which in turn will provide major cost benefits to the overall Group. Nikolai ZelenskiNordgold CEO
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