Geological prospecting and development

TAIMYR PENINSULA (Krasnoyarsk region)

Geological exploration on the Taimyr Peninsula is aimed at replacing platinum-nickel-copper ore and other mineral reserves of the Polar Division to provide continuous working of the mining-and-metallurgical integrated complex of the Company in Norilsk industrial district.

Maslovskoye deposit

The deposit is located within Norilsk industrial district, 8 -10 km south from "Medvezhi Ruchei" open-pit of Norilsk-1 deposit.

Based on the geological exploration, performed in 2006 – 2009, the Company prepared a feasibility study for provisional exploration conditions and a report with platinum-copper- nickel ore resource assessment for Maslovskoye deposit. In September 2009 the reserves of Maslovskoye deposit were included into the books based on the results of the assessment of “State Reserves Committee” of the Federal Subsurface Management Agency (Rosnedra).

Balance mineral resources at Maslovskoye deposit

KOLA PENINSULA (Murmansk region)

The primary trend in the mineral resources base of the Kola Peninsula includes a detailed exploration of the deep horizons at the existing Zhdanovskoe deposit; audit of its reserves using the new industry approach, and development of it as part of the Severny-Gluboky deposit. At the beginning of 2010, after mining, exploring and reevaluating the resources at Zhdanovskoe, the proven and probable reserves amounted to 92.3 million tonnes.

In 2009, the Company continued exploration works on Kola Peninsula to extend its mineral resources base in this region.

Yugo-Vostochnaya Gremyakha deposit

The Yugo-Vostochnaya Gremyakha titanium deposit is in the north of the peninsula, 40 kilometers outside of Murmansk. It contains ilmenite and titanomagnetite ores.
In 2009 the reserves of titan-magnetite–ilmenite ore and by-product minerals for the deposit were considered in the “State Reserves Committee” (Rosnedra) and registered in the amount of 585 million tonnes of ore (under В+С₁+С₂ categories).

Mineral resources of Yugo-Vostochnaya Gremyakha deposit for permanent conditions

Vuruchuaivench deposit

The Vuruchuaivench PGM, copper and nickel deposit is located in the center of the Kola Peninsula and Murmansk region, 10 kilometers outside of Monchegorsk and five kilometers from the site of the Severonickel plant, affiliate of Kola MMC.

In 2009 an application for a license for exploration and mining of platinum metal ores in case of confirming the Vuruchuaivench deposit discovery has been submitted. The receipt of a license is expected in 2010.

KINGASHSKY NICKEL PROJECT (Krasnoyarsk region)

The Kingashsky nickel project comprises two fields of cobalt, copper, and  nickel in the southern part of the Krasnoyarsk Region, 280 kilometers from the regional capital of Krasnoyarsk and 125 kilometers from the railway station of Sayansk (on the Abakan-Taishet railroad).

Verkhnekingashskoye deposit

In 2009, the “State Reserves Committee” (Rosnedra) approved permanent exploration conditions for the Verkhnekingashskoye deposit. The state assessment of copper-nickel ore resources for the Verkhnekingashskoye deposit, calculated on the basis of permanent conditions, is expected in 2010.

Kingashskoye deposit

In 2009, the Company completed exploration works at the Kingashskoye deposit, started in 2007. The “State Reserves Committee” (Rosnedra) approved permanent exploration conditions.

The resources assessment of the Kingashskoye copper-nickel ore deposit based on permanent conditions, as well as a state assessment of cobalt-copper-nickel ore resources is expected in 2010.

Total geological resources at Kingashskoye and Verkhnekingashskoye deposits under В+С₁+С₂ categories

CHITA PROJECT (Zabaikal Region)

Since 2007 geological exploration on five subsoil plots in Zabaikalsk region have been conducted under the Public-private investment project "Development of transport infrastructure to develop mineral resources of the south-east part of Chita region” (Chita project or Project).

Bystrinskoye deposit

The Bystrinskoye deposit is located in the Gazimur-Zavodsky district of the Zabaikalsk region.  The nearest inhabited areas are the Novoshirokinskoye settlement, 14 kilometers to the northeast, and Gazimursky Zavod, the district center, 25 kilometers to the northwest.

Resources at the Bystrinskoye deposit under B+С₁+C₂ categories

In 2009, pre-feasibility study on construction of mining-and-processing integrated works at Bystrinskoye deposit was completed.

In 2010, the Company plans to start feasibility study and engineering works at Bystrinskoye deposit.

Bugdainskoye deposit

The Bugdainskoye molybdenum deposit is located in the Alexandrov-Zavodsky district of the Zabaikalsk region.

In 2006-2007 geological exploration was conducted at the deposit to prepare it for commercial development. In December 2007 the “State Reserves Committee” confirmed the resources of the deposit under B+С1+C2 categories.

Resources at the Bugdainskoye deposit under B+С₁+C₂ categories

In 2009, pre-feasibility study on construction of mining-and-processing integrated works at Bugdainskoye deposit was conducted. A test resampling of ores to select an optimal preparation technology was also completed.

Kultuminskaya area

The Kultuminskaya area is located in the Gazimur-Zavodsky district of the Zabaikalsk region, 90 kilometers north of Gazimursky Zavod, district center. The distance between the area and the nearest railway station Sretensk is 95 kilometer.

Based on the results of geological exploration works, carried out in 2006 – 2008, the Kultuminskoyegold-iron-copper ore deposit was discovered. In 2008, the Company prepared a pre-feasibility study and a report with resource assessment, which were registered in accordance with the “State Reserves Committee” (Rosnedra) requirements in 2009.

Resources at the Kultuminskoye deposit under С₁+C₂ categories

Lugokanskaya area

The Lugokanskaya area is located in the Gazimur-Zavodsky district of the Zabaikalsk region, 280 kilometers outside of Gazimursky Zavod.

The Lugokanskoye gold, copper and silver skarn deposit was appraised in 2009 based on exploration works performed in 2006-2008. A pre-feasibility study and a resource assessment are in progress. In 2009, a report with Р₁ + Р₂ resources was prepared.

Resources at the Lugokanskoye deposit under P₁+P₂ categories

Solonechenskoye ore field

The Solonechenskoye ore field is located in the Gazimur-Zavodsky district of the Zabaikalsk region, near the Lugokanskaya area.

Based on the results of geological exploration the Company prepared and submitted to the “State Reserves Committee” (Rosnedra) a pre-feasibility study and a report with resource assessment for the Solonechenskoye antimony deposit.

Resources at the Solonechenskoye deposit under С₁+С₂ categories

Bystrinsko-Shirinsky deposit (Zabaikalsk region)

The Bystrinsko-Shirinsky gold ore depositis located in the Gazimur Zavodsky district of the Zabaikalsky region, 24 kilometers to the southeast from Gazimursky Zavod. The property line of the Bystrinsko-Shirinsky license area directly borders a portion of subsurface of the Bystrinskoye deposit, which is developed by the Company under the Chita project.

With the aim of determining the reserve potential of the Bystrinsko-Shirinsky deposit a follow-up exploration in its central area, flank and deep exploration works were performed in 2007-2009.

In course of exploration works, results on gold content have been obtained. In 2009, the Company installed a crushing-and-preparation plant for a pilot mining of gold-containing ores and their gravity segregation for gold extraction in order to determine commercial significance of the deposit, gold distribution pattern in overburden rocks, as well as to elaborate the metallurgical extraction method.

The total amount of gold extracted during the pilot development of overburden rocks in 2009 on Bystrinsko-Shirinsky deposit amounted to twelve kilograms.