OREANDA-NEWS. On November 30, 2007 OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, announced that it won an auction on entrails usage licences for Eastern and Western parts of Medvezhiy field in Irkutsk region, reported the press-centre of OJSC Polyus Gold.

The auction was held on November 30, and Polyus Gold’s wholly owned subsidiary OJSC “GRK “Sukhoy Log” suggested final price. The acquisition of the licences for Medvezhiy deposit (Eastern and Western parts) was done as part of Polyus Gold’s long-term exploration programme. The total price of the two licences amounted to 34,6 million ruble (approximately $1,3 million).

The Eastern and Western parts of Medvezhiy deposit are located in Bodaibo area of Irkutsk region in immediate proximity to the company’s Verninskoye deposit, where a new mine to be launched in 2009. Confirmation of reserves on Medvezhiy field (Eastern and Western parts) will help substantially increase the mineral resources base of the mine and will support further production growth.

Resources under categories P1+P2+P3 (Russian classification) of Western and Eastern parts of Medvezhiy exceed 80 tonnes of gold. The total investments in exploration works in the coming 6 years will amount to 700 million rubles (approximately $18 million).

 “We estimate the potential of the Eastern and Western parts of Medvezhiy field as very high and expect the exploration works to be carried out there to lead to substantial increase in reserves, - General Director of Polyus Gold Evgueni Ivanov said, - the exploration works at the field is an essential part of the process aimed at creating a large-scale gold mining complex in Irkutsk region”. According to Mr. Ivanov, Bodaibo district is an area of strategic importance for the company: having already developed industrial and social infrastructure in the region, Polyus Gold is aiming at expanding its presence in Irkutsk region, WHERE Russia’s highest potential gold deposit - Sukhoi Log – is located.