Having conducted a preliminary review of the Lunnoe project in Russia, Silver Standard Resources (TSE) intends to acquire a 46% interest in privately held Geolog. It had previously announced its intention to buy 35%.
Geolog, a joint stock company, owns the Lunnoe and Arylach silver deposits, 660 km north of Magadan in eastern Russia.
Silver Standard will buy an initial 5% stake in the company for US$750,000, which will be used to build a winter road and haul construction equipment to the site.
Silver Standard will also commission a bankable feasibility study. It can earn the remaining 41% interest in Geolog by arranging financing of up to US$12 million for a 500-tonne-per-day gravity-flotation mill.
The Lunnoe deposit contains 9.2 million tonnes grading 428 grams silver and 1.9 grams gold per tonne. Preliminary engineering studies project annual production at 77 million grams (2.5 million oz.) silver and 460,000 grams (15,000 oz.) gold.
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