Cyprus Amax Minerals (CYM-N) and Amax Gold (AU-N) have formed a joint venture with several Russian groups to develop the Vorontsovka gold deposit, on the eastern flank of the Ural Mountains.
Cyprus and Amax, in a 75-25 agreement, will operate and own 49% of the joint-stock company Gold of the North Urals.
The Russian partners include Urals Gold-Platinum, Bogoslovskiy Aluminum Smelter and two smaller groups.
The Vorontsovka deposit, which is near the towns of Krasnoturinsk and Serov, has the potential to produce 200,000 oz. gold and 325,000 oz. silver from an open pit, though no grade and tonnage estimates have been reported. Financial terms of the agreement have not been disclosed.
The Ural Mountains have produced more than 13 million oz. gold in the past 250 years.
Cyprus and Amax are also partners in another Russian gold venture. In the third quarter of 1995, Amax agreed to buy Cyprus’s interest in the Kubaka gold project in far eastern Russia. Amax announced in April that total capital costs for construction had jumped to US$228 million from US$182 million as a result of startup delays and higher labor and freight costs.
The Kubaka project is expected to produce 150,000 oz. per year for Amax at a cost of less than US$200 per oz.
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