London, United Kingdom, 27 April 2021 — Nord Gold plc (“Nordgold” or the “Group”), 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, with associated trucks and drills and auxiliary equipment, is a key deliverable of the two year US$ 58 million investment of Phase 1 of the Gross Expansion project that was launched in 2020. Total mining volumes will be increase to supply ore to an increased processing capacity of approximately 18 million tonnes of ore per year from the third quarter of 2021; up from 14.5 million tonnes 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, two excavators and two drilling rigs were acquired and commissioned in 2020 and first quarter of 2021.
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. Vitaly ZaganGeneral Manager of the Gross mine
The Gross Expansion project consists of two phases, with the increase in mining and processing capacity to 18 million tonnes 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 million tonnes 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 US$208 million, and lead to a weighted average annual production of approximately 350 thousand ounces of gold between 2025 and 2035 at an all-in sustaining cost (AISC) of approximately US$ 740/oz (subject to confirmation by the FS).
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. Nikolai ZelenskiCEO of Nordgold
Head of Corporate Communications
Tel: +44 (0) 20 7250 1446
Gross is located in the world class, highly prospective Gross Region in the southwestern part of the Republic of Sakha (Yakutia) in Russia. The Region includes Gross, as well as the Taborny mine and the Tokko project and represents a solid foundation of current performance and future low cost growth for Nordgold.
Launched in 2018, Gross is the third greenfield project developed by Nordgold from exploration to production since 2013, cementing the Company’s position as a leading developer of world-class gold mines. The mine was built on time and substantially in line with the feasibility study budget. The overall construction of Gross lasted for 24 months and the payback period was 20 months from the date of its commissioning. In 2020, Gross increased production by 7% year-on-year to 278 koz, contributing 26% to Nordgold’s total production of 1,045.6 koz. The mine supports more than 1,100 jobs.
Nordgold is an internationally diversified one million ounce gold producer with about 7,800 people operating a portfolio of nine mines (in Burkina Faso, Guinea, Russia and Kazakhstan) and a number of development and exploration projects in West Africa, Eurasia and the Americas. Since its foundation in 2007, Nordgold has established a global reputation as a leading developer of tier one gold mining assets with a proven commitment to community engagement, sustainability, efficiency and operating in an environmentally responsible manner.