2 September, 2017

Auriant Mining AB announces Russia Solcocon mine update

Auriant Mining has restarted alluvial production in the Solcocon mine with expected gold production of 61 kg for 2017.

Auriant Mining aims to increase production to a level between 100 to 150 kg per year for the years 2018 and 2019.

The alluvial gold production on the Solcocon mine is fully outsourced and produces a net margin (after mineral extraction tax) of 29%.

Auriant Mining is aiming to increase hard rock gold resources suitable for CIL processing on the Solcocon mine as a result of recommenced exploration program.

Solcocon

Solcocon is located in the Zabaikalsky krai in Russia. The license area named Staroverinskaya contains almost 15.6 tonnes of gold reserves (C1+C2 GKZ (Russian classification)). Operations at Solcocon were put on hold in 2015 and re-started in 2017.

Alluvial production

Solcocon alluvial production was re-started in June 2017. Target gold production for 2017 is 61 kg, with a possibility to increase to a production level of 100-150 kg/year of gold in 2018 & 2019. Solcocon alluvial production is fully outsourced and produces a net margin (after mineral extraction tax) to Auriant of 29%.

Recommencing Solcocon exploration program

Auriant Mining has recommenced its exploration program at Solcocon, aiming to increase hard rock gold resources suitable for CIL processing. The exploration program is to be financed using revenue from the alluvial production and from renting out the mine equipment.

In 2017, we are focusing our exploration efforts at North-East flank of Bogomolovskoe deposit as exploration in 2014 (both drilling and trenches) proved that this area was a promising target. We plan to undertake 5,000m of core drilling and 64, 000m3 of trenches.

The drilling program was started last week. In the trenches which have already been dug, we see sulfide mineralization which usually accompanies gold mineralization. The similarity of the mineralization structures to the neighbouring Solcocon ore bodies and the early drilling sample results, give an indication that we might be able to add up to 2 tonnes of gold to the Solcocon reserves as a result of our 2017 exploration efforts.

Next year’s target will be South flank of Bogomolovskoe deposit, which had also been drilled in 2014 and seems the next most promising ore occurrence in the Bogomolovskoe area.

Source: globenewswire