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Tuesday, 21st February 2006 (3960 views)

Trans Siberian Gold (TSG) has announced that it is to start developing the Asacha gold mine in Russia, subject to the completion of funding, and aims to begin producing gold from the site in 2008.

The plan that UK-based TSG has set out sees underground work beginning in August 2006, plant construction beginning in September and plant commissioning starting at the end of 2007, according to Metals Place.

It is estimated that the Asacha mine, located in the far east of Russia, will have a life of around 6.5 years and will produce around 608,000 ounces of gold, as well as 1.1 million ounces of silver.

The company calculates that total capital and pre-production costs relating to the project will be $90 million, noting that $11 million of this is recoverable through VAT.

TSG is looking to receive funding from Standard Bank and the European Bank for Reconstruction and Development. AngloGold Ashanti has also agreed to contribute to the cost of the project in order to retain its 29.8 per cent shareholding.

Trans Siberian Gold was established in 2000, and aims to develop "a portfolio of quality gold mining assets in Russia".

 

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