BISHKEK (24.kg news agency) – Kyrgyzaltyn JSC plans to develop Dzherui field with Unity Gold Mining Ltd. Unity Gold will fully finance the project.

Other applications for the contest for Dzherui gold deposit were filed by Russian company Vostok-Geoldobycha (owned by Russian millionaire Musa Bazhaev, the owner of Russkaya Platina and Amur Zoloto) and Aldan gold GRK JSC (included in the holding Polyus Zoloto of Suleiman Kerimov) and Kyrgyzaltyn JSC.

This was a re-tender.The initial price for the license was significantly reduced as compared to the previous amount ($300 mln). The Interdepartmental Commission set the initial bid at $100 million.

According to the expert, the price of gold today is $50 mln per ton. At present, the balance reserves of gold in the deposit are estimated at about 80 tons; another 16 tons are “off the balance”. The development and production of this precious metal reserve can bring a total profit of half a billion dollars at current prices.

Unity Gold is involved in two other mines in Kyrgyzstan:

• Tereksay Mine: processing capacity of 100,000 ore per annum producing floatation concentrate with an average of 40g/t content.
• Jerooy Deposit (Second gold deposit after the Kumtor): detailed geological database, large number of available samples, suitable for open pit mining.