Bulgaria seeks venture partners

Following the example of its neighbors in eastern Europe, Bulgaria is moving to a market economy. Its state-owned mining research and technology company, Niproruda, is in the process of being privatized.

Niproruda President Iliya Baltov was in Toronto this summer seeking to interest potential partners to develop a number of Bulgarian drill-indicated gold deposits. The Northern Miner interviewed Baltov, with the aid of an interpreter.

Five gold deposits have mineral inventories ranging from 800,000 tonnes to 17 million tonnes grading 0.67-5.26 grams gold per tonne. All of the ores are free-milling. The largest and smallest deposits are open pit propositions, Baltov said.

Placing these numbers into a Canadian perspective, the Hope Brook mine in Newfoundland of Royal Oak Mines (TSE), as of December, 1990, had proven and probable reserves totalling 9.7 million tonnes grading 6.1 grams gold. Hope Brook is an underground mine.

The closed Colomac open pit mine of Northgate Exploration (TSE) had diluted proven and probable reserves of 24 million tonnes grading 1.9 grams. Both Hope Brook and Colomac are in remote, inhospitable regions. Bulgaria, on the other hand, has a developed infrastructure, proximity to markets and low-cost labor. About a third of the country’s power is nuclear. Bulgarian currency is not convertible at the present time but the sale of gold bullion would not be affected by this restriction.

There are about 70 lead-zinc mines in the country (small operations by Canadian standards) and local copper mines provide a portion of the feed for a 130,000-tonne-per-annum copper smelter.

Most mines and smelting plants are operating at 50% rated capacity because of the shortage of investment capital and the loss of the country’s main export market (the former Soviet Union).

Bulgaria has a population of nine million and an area similar to the state of Tennessee. Its economy was primarily agrarian in earlier days (Bulgarian wines are renowned) but the Soviets established iron smelting and steel manufacture, the mining of iron ores and heavy industry in general after the Second World War when Bulgaria was drawn into the Soviet orbit.