Nordgold says assesses preproduction cost of Tokko proj at $306 mln

MOSCOW, Feb 26 (PRIME) -- Russian gold producer Nordgold has estimated preproduction spending on the Tokko project in the Yakutia republic, to be launched in 2024, at U.S. $306 million, the company said in a statement on Friday.

The average annual production is estimated at 200,000 ounces in 2–10 years. The capacity maintenance cost is seen at $637 per ounce in 14 years. Tokko is to become the second largest project of Nordgold by output.

"We are confident of in our ability to rapidly advance the Tokko project successfully and expect to begin construction in 2022, with first gold in 2024, subject to the feasibility study planned for 2021,” CEO Nikolai Zelensky said, as cited in the statement.

The project will encompass two fields – the Tokkinskoye and Romanskoye. The mineral resource estimate for the fields amounts to 1.3 million ounces and 2.3 million ounces respectively.

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