Magadan, firms set exploration budgets

The regional government of Magadan in northeastern Russia has budgeted $14 million for the exploration of new gold deposits in 1999.

The government intends to spend $11.4 million in the search for hard-rock gold sources, the goal being to increase inferred reserves to about 7 tonnes. The remaining funds will be used to explore for placer gold deposits in an attempt to increase existing reserves by 10 tons and add 1.8 tonnes of new reserves.

Russian and foreign companies operating in the region also have announced exploration budgets for next year.

Omolon Gold, the Russian subsidiary of Cyprus Amax Minerals, will spend $520,000 exploring the Tsokolnaya, central and northern zones of the Kubaka deposit. Cyprus’s partners include Magadan Gold-Silver and Geometall Plus.

Omsukchan Mining & Geological owns the 110-sq.-km Julietta gold property and surrounding ground, where it intends to spend $150,000 on exploration. The company is owned by Bema Gold, which is participating with three other Russian firms in developing the deposit, which contains 1 million gold-equivalent ounces. The gold-silver deposit is 250 km northeast of Magadan.

Australia’s Broken Hill Proprietary plans to spend $320,000 to evaluate gold prospects in the Kolyma River region and $110,000 on copper exploration in the Uptar region, about 40 km north of Magadan.