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Valuation of Amur Gold reserves was 13% lower than preliminary calculations - EastRussia | Far East






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Amur Gold's reserves estimate turned out to be 13% lower than preliminary estimates

Asset valuation "Amur Gold" received from the consulting company SRK Consulting Gold-mining alliance Petropavlovsk, preparing for a deal with Musa Bazhaev

Stock assessment
As stated in the message Petropavlovsk, the total amount of mineral resources "Amur Gold" by JORC is estimated at 1,86 million ounces, of which 1,35 million ounces are reserves. According to ore gold, reserves are 1,21 million ounces with average levels of 1,81 g / t, the remaining 0,14 million ounces - placers with average levels of 0,5 g / m3.

Estimated reserves in 1,35 mn ounces turned out to be 13% lower than preliminary estimates in 1,55 mn ounces previously reported. The difference is explained by different approaches to the assessment of "hurricane specimens" and more stringent formal requirements for some studies.

The net present value (NPV) of the mineral assets of Amur Gold SRK Consulting estimated at 170 million dollars (after taxes) at a discount rate of 10% and a gold price of 1100 dollars per ounce.

In April, Petropavlovsk reported that it had agreed to purchase the company "Amur Gold" from the structures of M. Bazhayev. The total amount of the transaction is 144 million dollars (not counting the net debt of 16 million dollars), and Petropavlovsk will pay for the purchase with its own shares. As a result, M.Bazhayev's structure was to receive 30,3% Petropavlovsk. But later it became known that Renova, the largest shareholder of Petropavlovsk at the moment, could become a third party in the deal and sell Petropavlovsk its company Kamchatka Gold, Interfax notes.

Petropavlovsk conducts industrial development of gold deposits in the Amur Region (Pokrovsky Mine, Pioneer, Malomyr and Albin). The largest shareholder of Petropavlovsk with a share of about 16,27% now are the structures of Viktor Vekselberg. Large packages also belong to Petropavlovsk's board chairman Peter Hambro (4,64%), CEO Pavel Maslovsky (5,81%) and their partner for the Asia-Pacific Bank Andrei Vdovin (4,02%).