Highland Gold Achieves First Gold Pour At Russia's Kekura Mine

(Alliance News) - Highland Gold Mining Ltd on Thursday announced the first gold pour from the Kekura project in the Chukotka region of Russia.

First gold occurred on March 10, the Russia-focused miner said, producing a gold bar weighing 46 ounces. This comes after the processing plant was commissioned earlier in 2020, with ore mining starting in October last year.

The plant has the capacity to process 120,000 tonnes of ore per year, with testing showing recoveries of around 35%. The main processing plant is due to be completed in late 2022, and this will be able to treat middlings from the pilot plant, enabling recoveries of 85%.

Chief Executive Denis Alexandrov commented: "On behalf of everyone at the company, I would like to congratulate the Kekura team on their first gold pour.

"While we don't expect significant production from Kekura this year, the early mining and processing work currently underway at the site will help us to build a strong team, to fine-tune systems, to better understand the ore body, and to prepare for a smooth launch of commercial production down the road."

Elsewhere, Highland Gold is in the final stages of renovating the processing plant at the Belaya Gora mine in the Khabarovsk region. This is on track to complete in the second half of 2020, improving recoveries to 90% from 75%.

At Novoshirokinskoye in Zabaikalsky, Highland Gold is also in the late stage of expansion. This will take mining and processing capacity to 1.3 million tonnes a year from 800,000 tonnes currently.

Shares were 5.3% lower in London on Thursday morning at a price of 155.30 pence each.

By George Collard; georgecollard@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.