Goldbelt’s copper project in Russia comes under scrutiny

Junior Goldbelt Resources (VSE) appears hopeful that its initial agreements providing rights to the Udokan copper project in Russia will be “grandfathered” by the current Russian government.

The company was responding to recent press reports that cast doubt on its current rights to the copper project.

Late last year, Goldbelt agreed to acquire a Luxembourg-registered company which had been established in March, 1991, by a private Australian company which entered into original agreements relating to the property in 1990 and early 1991.

Goldbelt Chairman Mike Muzylowski acknowledged that extensive political changes have occurred within Russia since the original Udokan agreements were signed in March, 1991.

“We have lived up to our obligation under our agreements and have just recently presented a scoping study review of the project to officials in Chita,” Muzylowski said, adding that the study was a necessary prerequisite to a feasibility study and a joint venture to develop the project. Muzylowski also noted that Goldbelt followed a similar process in Kazakhstan where a US$40-million gold project is proceeding on schedule and is now in the financing stage.