PRESS: Russia’s Rosgeo wants additional exploration of Sukhoi Log

MOSCOW, Nov 30 (PRIME) -- Russian geological exploration company Rosgeo, also known as Rusgeology, has offered to explore the Sukhoi Log gold deposit further to increase its reserves of inferred resources before selling, Kommersant business daily reported on Wednesday citing sources.

Anton Sergeyev, aide to Rosgeo’s CEO, told Kommersant that the company did not send any proposals on the Sukhoi Log to the government. Representatives of the Natural Resources and Environment Ministry and two of companies that were interested in the asset – state industrial corporation Rostec and gold producer Polyus – declined to comment.

According to the government, Sukhoi Log’s inferred resources under B, C1 and C2 categories amount to 1,953 tonnes of gold and 1,541 tonnes of silver, while off-balance gold resources stand at 799 tonnes. Natural Resources and Environment Minister Sergei Donskoi has said that the Sukhoi Log, one of the largest undeveloped fields, is unlikely to be auctioned in 2016.

Sources told Kommersant that larger reserves will allow the government to sell it at a price exceeding the current initial payment of 8.55 billion rubles. If the additional exploration is done, Rosgeo may in future claim for development of the field on its own or with partners, one of sources told the business daily.

Two sources said that the company’s proposal is a reason to delay of the auction. But a source close to the office of a deputy prime minister said that the company did not file written requests.

(64.9449 rubles – U.S. $1)

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