Investing in Gold Mining
Carried out by UGPay Group
The gold mining investment project of UGPay Group represents the Urals Gold ore assets located in the Sverdlovsk region of the Russian Federation.
Key facts of Investing in gold mining in the "Urals Gold" project:
The results of the geological exploration work carried out indicate the presence of a significant amount of gold resources of the P1 + P2 category in 16 licensed subsoil areas – 880 tons of pure gold.
A part of the resources that have passed approbation and geological expertise based on the completed feasibility study and reserve calculation are in the process of putting reserves on the balance sheet in the C1 + C2 category for 16 licensed ore gold areas in total in the amount of 40 to 48 tons of pure gold in the period from 2020 to 2022.
- The weighted average gold grade in the ore is 2.5 g/t; confirms the presence of rich ore blocks with a content of 3-4 g/ton, which is significantly higher than the average for world deposits – 1-2 g/ton.
- Subsoil plots are located in the Sverdlovsk region in the Urals, which has significant potential for exploration and development of deposits:
- The ore is mined at the first stage with minimal overburden and without drilling and blasting operations.
- It is possible to use traditional low-cost technologies for gold extraction due to the absence of refractory ores.
- Due to the temperate climate, gold mining can be carried out all year round.
- There are a number of settlements in the immediate vicinity of the licensed areas.
- There is a developed transport infrastructure near the subsoil sites (highways – close to the borders, railway stations (1.5-155 km), Koltsovo airport (60 km from the southern border)) and power lines (cross the area).
- The licensed areas are located in the area of the existing infrastructure for the processing of gold ore.
Investing in gold mining project has several advantages:
- The fact that in the 20-30s the study of deposits and gold mining was carried out in most of the subsoil areas (it was suspended when the content of 20 grams of gold per ton of ore was reached), determines the reliability of the available geological information.
- At the moment, there are confirmations of resources and technical and economic parameters of production from the Department for Subsoil Use of the Ministry of Natural Resources and Environment of the Russian Federation.
- There is no dependence on the processes of development of the regional infrastructure, since the transport, energy infrastructure, power transmission lines, as well as housing and communal services and settlements are in close proximity to subsoil plots.
- The project provides for cost optimization for infrastructure construction and further operation through the construction of a modular gold recovery plant.
The cost of an operating business for the development of gold deposits:
The investment value of the operating business, calculated under the Income Approach (Discounted Cash Flow Method), is 593 million USD as of December 31, 2019.
The result of evaluating of the investing in gold mining value of a field development business is confirmed by Ernst & Young based on data from the Institute of Mining of the Ural Branch of the Russian Academy of Sciences and the Department of Subsoil Use for the Ural Federal District (Uralnedra) of the Federal Agency for Subsoil Use of the Ministry of Natural Resources and Environment of the Russian Federation.
Note: After signing the Letter on non-disclosure of information to third parties, it is possible to get acquainted with the report about the investing in gold mining containing a description of the assessment of the investment value of the operating business for the development of gold deposits.
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