Amsterdam, Netherlands, 23 April 2012 — Nord Gold N.V, («Nordgold» or the «Company», LSE: NORD), an independent, internationally diversified, pure-play gold producer strategically focused on emerging markets, is pleased to announce the results of its Resource and Reserve upgrade using all available data for the Company’s mines and deposits as reported by Wardell Armstrong International, Snowden Group (JORC Code compliant updates) and Ricardo Valls (CIM compliant updates). These estimates supersede all previously announced estimates.
|1 January 2012, koz||1 June 2011, koz||Change|
|Total reserves (P+P)||12,657||8,193||54%|
|Total resources (M+I+I)||29,469||22,651||30%|
Note: * Includes the CIM reserves and resources at the Buryatzoloto properties, and reserves for Gross reported by Snowden.
This combination of a significant rise in Reserves and Resources together with the results of a very successful exploration programme gives us real confidence in our ability not just to meet our near term forecasts, but to deliver on our ambition to become a truly world class gold producer. The results of our 2011 exploration programme have shown the substantial potential for further reserve upgrades at existing Nordgold mines, as well as the high prospects of our Greenfield projects. This update is a powerful endorsement of our strategy of investing in exploration and of our proven ability to successfully grow our Resource base and lengthen the life of our portfolio. Nikolai ZelenskiCEO of Nordgold
This is a significant announcement for Nordgold as it highlights very clearly the highly attractive growth potential of the Company and demonstrates our ability to convert Resources into Reserves. These upgrades across the portfolio illustrate the strength of our asset base which will enable us to create long term sustainable value for our shareholders. Philip BaumChairman of Nordgold
Nordgold has a demonstrated track record of successfully growing its resource base. Today’s announcement clearly demonstrates Nordgold’s ability to deliver on exploration projects which will extend asset life and further broaden the product portfolio in our key target emerging markets. The results at both Bissa and Gross highlight the exciting potential of those projects, while the Company has already delivered on its extensive exploration programme with today’s announcement of new discoveries. The Company has a portfolio of 30 early-stage and advanced exploration properties and we look forward to providing further updates on the progress of these projects in due course.
Nordgold will host a webcast and conference call for analysts and investors on 24 April at 1 pm London time. CEO Nikolai Zelenskiy will present the Company’s JORC results and provide further details of Nordgold’s growth plans. At the same time we will be happy to announce our Q1 2012 operational results and answer questions related to the JORC results.
Conference Title: Nordgold Presentation of Operational Results for the First Quarter of 2012
Conference ID: 4533259
Please use one of the following dial-in numbers to connect to the conference:
Russia8-10-800-2-198-4011 (toll free)
+44-20-7190-1590 (local access)
0800-358-5258 (toll free)
+1-480-629-9678 (local access)
+1-877-941-8633 (toll free)
+49-6971-044-5555 (local access)
0800-330-4463 (toll free)
The press and analyst conference will also be broadcast live over the Internet, and will be available as a recording after the conference. The live service also allows for written questions to be submitted.
You can connect to the conference or view its recording using a mobile phone, iPhone or iPad.Materials
The Company’s JORC report press release and the following reports by Wardell Armstrong International and in relation to the Tabornoe and Gross Assets, by Snowden Group will be available on the Company’s official website: www.nordgold.com:
A press release dated 16 April 2012 in relation to the Irokinda and Zun-Holba assets of High River Gold Ltd and the following reports on those assets by Ricardo Valls, P. Geo are available from the website of High River Gold Ltd at www.hrg.ca:
Tel: +44 (0)20 7379 5151
Jefferies Hoare Govett
Tel: +44 (0)20 7029 8000
For further information on Nordgold please visit the company’s website – http://www.nordgold.com
Nordgold is a young and dynamic company. Since its establishment in 2007, Nordgold has expanded rapidly through acquisitions and organic investment, achieving a rate of growth unmatched in the industry during that period. By the end of 2011 the Company’s gold production has reached 754 Koz.
Nordgold has eight producing mines, two development projects, five advanced exploration projects and a broad portfolio of early exploration projects and licenses.
Nordgold’s target is to produce 1 Moz of gold from existing mines and development projects by the end of 2013. This target is underpinned by company’s gold reserves of 12.7 Moz and resource base of 29.5 Moz of gold and 103 Moz of silver.
A 'Mineral Resource' is a concentration or occurrence of material of intrinsic economic interest in or on the earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. Mineral Resources are further sub-divided, in order of increasing geological confidence, into inferred, Indicated and measured Categories.
Inferred Mineral Resource is that part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological/or grade continuity. It is based on information gathered through appropriate techniques from location such as outcrops, trenches, pits, workings and drill holes which may be of limited or uncertain quality and reliability.
Indicated resources are simply economic mineral occurrences that have been sampled (from locations such as outcrops, trenches, pits and drill holes) to a point where an estimate has been made, at a reasonable level of confidence, of their contained metal, grade, tonnage, shape, densities, physical characteristics.
Measured resources are indicated resources that have undergone enough further sampling that a 'competent person' (defined by the norms of the relevant mining code; usually a geologist) has declared them to be an acceptable estimate, at a high degree of confidence, of the grade, tonnage, shape, densities, physical characteristics and mineral content of the mineral occurrence.
Mineral reserves are resources known to be economically feasible for extraction. Reserves are either Probable Reserves or Proved Reserves.
A Probable Ore Reserve is the economically mineable part of Indicated, and in some circumstances, a Measured Mineral Resource. It includes diluting material and allowances for losses which may occur when the material is mined. A Probable Ore Reserve has a lower level of confidence than a Proved Ore Reserve but is of sufficient quality to serve as the basis for decision on the development of deposit.
A Proved Ore Reserve is economically mineable part of a Measured Mineral Resource. It includes diluting materials and allowances for losses which occur when the material is mined.
A Proved Ore Reserve represents the highest confidence category of reserve estimate. The style of mineralization or other factors could mean that proved Ore Reserves are not achievable in some deposits.