Bobrikovo mine is located in Eastern Ukraine in the Luhansk (Lugansk) Province. Bobrikovo gold and silver project has a JORC Code compliant resource of 3.3 million ounces of gold and 16.3 million ounces of silver. In addition to the classified mineral resource Bobrikovo has a substantial exploration potential. The oxidised mineralisation of the Bobrikovo deposit begins at the surface and extends down to 40-50m. Fresh rock mineralisation occurs from the depth of 40-50m down to at least 3000m.
Bobrikovo has been mining and stockpiling oxide ore on a campaign basis and has commenced the development of the processing plant and other mine infrastructure. It is planned to develop the oxide and transition zones of the deposit as a simple open cut mine.
Project is located within a large intra-continental Phanerozoic structure that extends from southern Europe east to Central Asia. This structure hosts several world-class gold mining operations including Muruntau, Vysokovoltnoe, and Bakirchic. The tenor and style of mineralisation at Bobrikovo is similar to 170 million ounce gold deposit at Muruntau in Uzbekistan and to multi million ounce Sukhoi Log deposit in Russia.
Bobrikovo deposit is located within a structure that strikes 11km by 2.5 km. The deposit occurs on the intersection of deep fault zones. Mineralisation is controlled by NW-NNW trending anticline hinge, and occurs as concordant and discordant quartz-carbonate tension veins and stockworks. Host rocks of the Nagolny Kryazh comprise two structural stages: the lower, Precambrian, and the upper, Phanerozoic. The lower structure comprises deformed sequence of gneisses and crystalline schists. Precambrian basement is overlapped by 3km- thick sedimentary rock sequence. Ore zone is 2.5-3 km long and 0.9 – 1km wide.
Muruntau gold deposit in Uzbekistan is the world's largest gold deposit with production of 2Moz Au per annum. The ore reserves and resources at Muruntau (including historical production) is about 170Moz of gold. It is also world's largest open pit gold mine, The open pit measures about 3.5km by 2.5 km and extends to a depth of 350m. Ore is mined from an open pit with dimensions of about 2,500m x 3,500m, and 300m deep. Final pit depth is planned to be 650m with the mineralisation known to extend to a depth of at least 1,500m. Muruntau processing plant treats ore with an average head grade of 2.4 g/t Au at the rate of 2.2kt per day. The processing circuit includes a gravity circuit.
Sukhoi Log gold deposit mineralisation is similar structurally and in style of mineralisation to Bobrikovo deposit. Sukhoi Log's mineral reserves at a cutoff grade of 1 g/t Au are 384Mt with average grades of 2.6 g/t Au for 33Moz. Additional resources include 165Mt at 2.1 g/t which could be converted to reserves and developed into an open pit operation. 205Mt at 0.8 g/t Au sits as a low grade halo around the higher grade mineralisation.