UPDATE: Russia issues license for largest gold field Sukhoi Log

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MOSCOW, Feb 17 (PRIME) -- Prime Minister Dmitry Medvedev has signed a decree confirming the victory of a joint venture between miner Polyus and state conglomerate Rostec in an auction for Russia’s biggest gold deposit Sukhoi Log with a 9.4 million ruble bid, according to a document released on the government Web site on Friday.

The deposit located in the Irkutsk Region accounts for 28% of all Russia’s gold resources. It has 1,656 tonnes of inferred gold resources under a B+C1+C2 category, 1,533 tonnes of silver and 522 tonnes of off-balance gold reserves. The Natural Resources and Environment Ministry said the deposit requires 90-100 billion rubles of capital investments to produce 80-90 tonnes of gold and 20-25 tonnes of silver per year.

The joint venture is called SL Zoloto, and has a 51-49% shareholding between Polyus and Rostec. In January, Polyus said it plans to acquire an additional 23.9% stake in SL Zoloto from Rostec for around U.S. $141 million, after the license has been obtained.

(57.1507 rubles – U.S. $1)

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