News

February 05, 2008

Ovoca Gold Ready To Move On Goltsovoye

By Rob Davies

The delivery of a Bankable Feasibility Study for the Goltsovoye silver deposit in the Magadan region of Russia is a major step forward for Ovoca Gold. Now that it has the formal stamp of approval from consultants Scott Wilson for this project it can start making progress in taking the project forward and into production. Located in the remote sub-arctic north east of Russia, Goltsovoye is 575 kilometres from the port of Magadan. Operations Director Rowan Maule told Minews that an exploration road connects it to the nearest town of Omsukchan making it, in his words, “not that remote”. It was discovered in 1979 by Russian geologists and extensively explored by drilling and adits. The report from Scott Wilson confirms the NI 43 -101 status of the resource at 1.4 million tonnes at a grade of 884 grammes per tonne silver giving a total of 41 million ounces of contained silver. Rowan was keen to point out that this is only the resource from zone 1 and that another five or six zones are known, but have yet to be explored.

The area is quite mountainous and the deposit has been extensively explored through a 12 kilometre network of adits, as the majority of the resource sits above the valley floor. This data has allowed the consultants to classify the deposit as measured and indicated. The silver is mostly associated with galena and the study envisages the production of a silver rich lead flotation and gravity concentrate that will probably be smelted in Japan. Although the deposit is not large, its very high...