Key Facts

Ownership 100%
Location Chukotka region, Russia
Mining (projected) Оpen pit 
Operating Company Klen llc

Overview

Highland Gold acquired Klen LLC in July 2012, together with its mining and exploration rights to the Klen gold deposit and the adjacent Verkhne-Krichalskaya property. The sites are located in the Bilibinsky area of the Chukotka Autonomous Region, 250 km to the southwest of Bilibino, in north-eastern Russia. Chukotka is one of the fastest growing, investment friendly gold producing regions in Russia with immense exploratory potential.

The project will be an open pit operation allied to a conventional gravity and cyanidation process plant. It is expected to produce 50,000 – 60,000 oz of gold per annum with 300,000 – 400,000 tonnes of ore being processed each year, having an average head grade of 5.14 g/t.

Plant and mine design work were initiated in 2012 and initial supplies were delivered to site towards the end of the year. In 2014, the Company received a positive conclusion from the regulatory Main State Review Board regarding design documentation for the Klen deposit development project.

The Verkhne-Krichalskaya (VK) exploration and mining licence incorporates the Klen licence and could hold upside potential for the Klen project. In 2014, the Company completed more than 11,000 metres of exploration drilling at several targets, including deeper levels of the Klen deposit and several gold prospects at VK identified during previous exploration programmes. Drilling results indicate limited potential at greater depths of the Klen deposit, while a preliminary resource calculation in relation to gold-mineralised vein structures at the VK prospects suggests additional resource potential for Klen.

Resources (in accordance with JORC) 

Classification Ore, tonnes Gold, g/t Contained gold, ounces Highland's interest(%) Gold ounces attributable to Highland
Indicated 2 850 000 5,8 530 809 100% 530 809
Inferred 1 020 000 2,9 96 452 100% 96 452
Total 3 870 000   5,0 627 261 100% 627 261

As of 31.12.2014 (cut-off grade >0.8 g/t)