Last checked at 5 Apr 2012 17:15
Ovoca Gold Plc ("Ovoca" or the "Company")
Russian regulatory authorities issue exploitation license for Olcha
Ovoca is pleased to announce that the Russian State regulatory body concerning the licensing of state resources has granted to the Company a 25 year exploitation license regarding Olcha (license number MAG 04341 BE, valid to 3 April 2037).
The Olcha license has a total area of 2.5 square kilometers and allows the Company, through its Russian ZAO Bulun subsidiary, to mine gold and silver. The State-certified reserves equal 279,000 ounces of gold at a grade of 13.4 g/t and 655,000 ounces silver at a grade of 31.6 g/t in the Russian reserve category C1 + C2 (this is not JORC compliant and not reviewed by a Competent Person). The Company, as per the license terms, must begin construction of a mine no later than 3 October 2020.
Russian legislation does not consider the Olcha deposit strategic as it is below the established strategic threshold of 1.6mn ounces gold in the Russian reserve C1 + C2 category.
The Olcha license is a "carve out" of the Rassoshinskaya exploration license, the latter being still valid to 15 February 2013 and still extendable.
As per the vending agreement between the Company and the sellers of ZAO Bulun (effective 15 January 2010) which stated that US$3 million is due to the sellers upon reception by the Company of any exploitation license on the territory of the Rassoshinskaya license area, the Company has paid said US$3 million.
Tim McCutcheon, CEO, comments: "We are all extremely pleased with the issue of the exploitation license for Olcha. By receiving the exploitation license we have demonstrated once again that the Ovoca team can work in Russia effectively and that the regulatory framework for mining in Russia does work. I would like to thank our technical team and lawyers for compiling all the documentation for the license, which was an arduous task. I look forward to growing the gold and silver resource at Olcha as well as at nearby deposits such as Zet."
Notes to Editors
Ovoca Gold PLC ("Ovoca" or "the Company") is a mineral exploration and mine development company listed on the AIM market of the London Stock Exchange (Ticker: OVG) and on the ESM market of the Irish Stock Exchange (Ticker: OVX). The Company's principal activity is gold exploration in the Magadan Region of the Russian Federation. Previously Ovoca acquired, developed and sold to JSC Polymetal the Goltsovoye silver project located in the Magadan Region. Currently, Ovoca is aggressively exploring and developing its 100 per cent owned Stakhanovsky and Rassoshinskaya licenses.
Stakhanovsky is located approximately 40 kilometres north of Susuman, the second largest city in the Magadan region. It is accessible by year-round road and there is power infrastructure on site. Stakhanovsky's initial independently established resource was announced in an RNS on 2 February 2011 and is available on the Company's website. The Company intends to put Stakhanovsky into production by 2014.
Rassoshinskaya is in the North Eastern part of the Magadan Region about 200 kilometres from the town of Seimchan. There is no nearby infrastructure. Rassoshinskaya hosts an epithermal gold deposit named Olcha, which is the focus of Ovoca's exploration program. Olcha and nearby satellite deposits have the potential to host a high grade multi-million ounce gold resource. Olcha's latest independently established resource was announced in an RNS on 7 July 2011 and is available on the Company's website.
Ovoca Gold Plc
Timothy McCutcheon +7 495 916 6029 tim.mccutcheon@ovocagold.com
Davy - NOMAD and joint broker
John Frain +353 1 679 6363
Fairfax I.S. PLC - joint broker
Ewan Leggat/Laura Littley +44 207 598 5368