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 AIM; HGM
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Company Statement
Highland Gold Mining Limited was incorporated in Jersey on 23 May 2002 for the purpose of acquiring, consolidating and developing a portfolio of quality gold mining projects in the Russian Federation with good growth potential.
Highland’s vision is to become the most profitable gold mining company in Russia and Central Asia with a firm commitment towards safety, health and the environment, and social responsibility towards employees and communities.
Highland Gold Mining is a well established gold producer with a world class Russian asset base of producing, development and exploration projects. It has strong management and operational teams with local and international expertise and an exciting portfolio of resources estimated at 15.7 million oz. We have an unrivalled pipeline of growth projects and focus on extensive exploration.
Highland Gold owns the fully operational Mnogovershinnoe mine (MNV) in the Khabarovsk Region; three development projects - Novoshirokinskoye and Taseevskoye (Chita Region), and Mayskoye (Chukotka); six exploration areas - Belaya Gora, Iska and Maya Inikan in the Khabarovsk Region, Lubavinskoye-Malo-Fedorovskoye in the Chita Region, Sovinoye in Chukotka and Unkurtash in Kyrgyzstan (Central Asia).
Highland Gold has 325,197,098 common shares in issue which, since December 2002, have traded on AIM in London under the symbol "HGM". Main shareholders are Millhouse LLC, Barrick Gold Corporation and Company’s management.
Current Operations
Novoshirokinskoye
The deposit at Novoshirokinskoye (Novo) in Chita Region of Eastern Siberia was discovered in 1951 and extensively explored between 1956 and 1962. A development plan for a base metal mine was formulated in 1969 and construction of the project began in 1970. The construction work progressed slowly and was suspended in the 1970s. A modified development plan which proposed a production rate of 450,000 tonnes per annum of ore was approved in 1988, but construction was again suspended in 1994, after the majority of the construction work was complete, due to the prevailing economic conditions and the termination of centralised state funding.
Prior to acquisition in 2002 the Novo mine had been researched and extensively developed to produce primarily zinc and lead, with gold and silver as by-products. At the beginning of 2003, the Group commissioned a feasibility study to review both the ore body and the existing plant to prioritise gold production.
In the end of 2005 HGM submitted a report on recalculated Novo resources to the State Committee for Reserves for expertise. The expertise pointed out a number of defects and the report was returned for improvements.
Mnogovershinnoe Mine
Mnogovershinnoe is located in the Nikolaevsk area of the Khabarovsk Territory in the far-east of the Russian Federation. The mine is located some 650 km north of the city of Khabarovsk and is accessed from Nikolaevsk-na-Amure, the principal regional centre, via a 132 km long gravel road.
The Mnogovershinnoe deposit was discovered in 1959 and detailed exploration commenced in 1963. Preliminary construction started in 1979, the mineral processing facilities were constructed between 1990 and 1993 and preliminary production started in 1991. Between 1991 and the present day the mine has produced some 700,000 oz of gold.
The Group owns 100% of the MNV joint-stock company, which has a licence for the extraction of gold ore valid until December 2018. Operations at MNV consist of both underground and open-pit mining of several high grade gold deposits. In addition, MNV has its own gold processing plant. MNV was initially brought into production by its previous owners in 1991 and operated until 1997, when the mine was closed due to poor technical and financial performance and a lack of funds for reconstruction and development. Following a change of ownership and the introduction of the current management team, gold mining and gold extraction recommenced in 1999 under the direction of the new management team. Subsequent capital investment in mining and metallurgical equipment, has meant that the technical performance of the mine has significantly improved over the last five years.
Taseevskoye
The Taseevskoye deposit is located two kilometres south of the town of Baley (Population: 13,800) in the Chita region, Eastern Siberia. It lies 56 kilometres south by paved road from the Trans Siberian Railway station at Priiskovaya. Chita, the regional capital, is located 320 kilometres to the west of Baley. The deposit was discovered in 1941 and during the period 1948 to 1994 produced 6.4 million ounces of gold from 16.3 million tonnes of ore at an average gold grade of 12.2 g/t. This was produced from a swarm of epithermal gold bearing quartz fissure veins located within a circular area 1000m in diameter. The predominantly underground mining operation concentrated on three principal vein systems, leaving un-mined a large lower grade mineralized envelope contained within an argillic alteration halo surrounding the fissure veins. Highland Gold’s acquisition of Taseevskoye is rooted in the potential for open pit mining of this large lower grade resource, which was also the subject of a 1997 bankable feasibility study commissioned by the former licence holders.
Geographical Spread
Russia
Board of Directors and Key Management
| Board of Directors | ||
| Duncan Baxter | Non-Executive Chairman | |
| Ivan Koulakov | Non-Executive Director | |
| Nicholas Nikolakakis | Non-Executive Director | |
| Olga Pokrovskaya | Non-Executive Director | |
| Jacques McMullen | Non-executive director | |
| Terry Robinson | Non-Executive Director | Chairman of the Audit Committee |
| Eugene Shvidler | Non-Executive Director | |
| Eugene Tenenbaum | Non-Executive Director | |
| Senior Management | ||
| Valery Oif | CEO | |
| Sergey Yakimov | Managing Director,Novoshirokinsky Rudnik |
Company Address26 New Street
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Additional Address/Key ContactRussdragmet (management company) |
CapitalNumber or % of shares
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Year EndDecember 31 |
Nominated BrokersJP Morgan Cazenove | Nominated AdvisorsJP Morgan Cazenove |
Broker/Analyst Reports
04/12/07 - Fox Davies Capital Flash Note
Major Shareholders
| Millhouse LLC |
| Barrick Gold |
| Board & Management |
Related News
04/02/10 - With Production Set To Rise To 210,000 Ounces This Year, Highland Gold Is A Company That Once Again Seems At Ease With Itself29/09/09 - Cashed Up And Profitable, Highland Gold Is Looking To The Future With Confidence
11/06/09 - With Over $260 Million In The Bank And Production Steady At Over 150,000 Ounces Per Year, Things Are Looking Up For Highland Gold
15/01/09 - Abramovich Shuffles The Pack At Highland Gold
30/09/08 - Highland Gold Swims Against The Tide, As Usual: This Time It’s Good News As Everyone Else Runs For Cover
18/08/08 - With The Help Of Some Powerful Backers, Highland Gold Is About To Be Catapulted Into The Big League
Most Recent Statement
03/03/10 - Novo Update March 201022/02/10 - New Acquisition
03/02/10 - Trading Statement
10/12/09 - Board Changes
03/11/09 - Significant Results Achieved at two Highland Gold Exploration Properties.
01/10/09 - Highland Gold Commissions Novoshirokinskoye Mine