London, United Kingdom, 3 October 2017 - Nord Gold SE. ("Nordgold" or the "Company"), the internationally diversified gold producer, announces that its Strategy Director, Oleg Pelevin, presented to the 2017 Denver Gold Forum, held on 24-27 September in Colorado Springs, US.
Mr Pelevin’s presentation provided an update on the progress of the ongoing construction of Nordgold’s Gross mine in Russia. Gross is an all-season open-pit heap leach project, located in southwestern Yakutia, Russia, 4 km east of the Neryungri mine. A Feasibility Study confirmed the economic attractiveness of the project, giving an IRR of almost 40% at a gold price of US$1,250/oz and an IRR of approximately 25% at a gold price of US$1,100/oz.
This mine represents Nordgold’s third exploration-to-construction project, with proven and probable reserves of 4.4 moz, and is expected to produce first gold in the first half of 2018. The construction of the Gross mine, which is in line with Nordgold’s strategy and has already been heavily de-risked and modelled to ensure it will be value-enhancing, is on schedule and on budget, following the similar success of Nordgold’s previous constructions projects, Bissa and Bouly in Burkina Faso.
In addition, Mr Pelevin gave a general update on Nordgold’s progress in 2017, as it develops its pipeline for growth.
The Gross mine represents a very important part of Nordgold’s future growth plans. We will invest a total of $250 million into the project over the period of construction. When Gross is operating at full production, this will make Nordgold a 1 million ounce gold producer, a landmark for the company. This project is progressing well and we head towards first gold production in the first half of next year. We are pleased to continue our relationship with the Denver Gold Forum, which represents an important gathering of people from our industry. Oleg Pelevin Strategy Director at Nordgold
The Denver Gold Forum is the world’s largest gathering of precious commodity companies. It is attended by the world’s leading specialist precious metal investors as well as generalist institutional investors, private equity, and hedge funds.
Nordgold is an internationally diversified gold producer established in 2007. Nordgold has a proven track record of operational excellence and benefits from a significant international development pipeline. The Company is relentlessly focused on shareholder value, committed to running safe, efficient, profitable operations, which enable it to generate strong cashflows and in turn, continue to invest in its pipeline of new growth opportunities while generating returns for investors. In 2016, Nordgold produced 869 koz of gold.
Nordgold operates 9 mines (4 in Russia, 3 in Burkina Faso and one each in Guinea and Kazakhstan). It has one project in construction phase (Gross in Russia), several prospective projects and advanced exploration phase and a diverse portfolio of early-stage exploration projects and licences in Burkina Faso, Russia, French Guiana and Canada. Nordgold employs over 8,000 people.
A copy of the presentation is available here
Head of Media Relations
Tel: +7 495 644 4473
Tel: +44 (0) 20 7250 1446