2013 operations review & project update · 2018-09-14 · ulan bator chita khabarovsk...
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2013 Operations Review &
Project Update
Russia & CIS Precious Metals Summit,
Moscow, February 2014
Werner P. Klemens,
Head of Exploration
2
Certain statements within this presentation constitute forward looking statements. Such forward looking
statements involve risks and other factors which may cause the actual results, achievements or
performance of the Group to be materially different from any future results, achievements or performance
expressed or implied by such forward looking statements. Such risks and other factors include, but are not
limited to, general economic and business conditions, changes in government regulations, currency
fluctuations (including the US$/RUR rate), the gold price, the Group’s ability to recover its reserves or
develop new reserves, competition, changes in development plans and other risks.
There can be no assurance that the results and events contemplated by the forward looking statements
contained in this presentation will, in fact, occur. These forward-looking statements are correct or represent
honestly held views only as at the date of delivery of this presentation.
The Company will not undertake any obligation to release publicly any revisions to these forward looking
statements to reflect events, circumstances and unanticipated events occurring after the date of this
presentation except as required by law or by regulatory authority.
Disclaimer
3Highland Gold Today
• Company incorporated in May 2002 and quoted on AIM (London) since
December 2002
• Currently operating 3 producing mines, 4 development projects and
5 exploration assets – FY 2013 production was ~ 234 koz Au + Au eqv.
• Current resources estimated at over 16.5 million ounces (in accordance with
JORC)
• Focus on additional growth opportunities in Russia and Central Asia
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Description Number or % of shares
Issued shares 325,222,098
Market Cap at AIM LSE – February 11, 2014 (in millions) US$ 375
Share Structure
• Major UK and European based institutional
investors
• Millhouse LLC (through Primerod International
Ltd) - Moscow based Russian asset
management company that oversees
investments in metallurgy, mining, real estate,
consumer goods and transport engineering
Board & Mgt
11.4%
Primerod
32.0%
Other
41.6%
Prosperity Capital
Asset Mgt
15%
5Mine Location
Bishkek
Moscow
Ulan Bator
Chita
Khabarovsk
Vladivostok
Blagodatnoуe
Novoshirokinskoye
MNV
TaseevskoyeLyubov
Belaya Gora & Flanks BG
Astana
Regional office
Exploration projects
Development projects
Operating mineUnkurtash
Klen & Verkhne-Krichalskaya
Kekura
6Mnogovershinnoye (MNV)
• 145,259 oz of gold produced at MNV
during FY 2013
• 92% gold recoveries resulting from
major process updates implemented
throughout the year
• Open-pit operations 2013 focused on
optimizing stripping at the Flank ore
body in preparation for 2014 mining
Maintaining stable production
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Extensive near-mine exploration
programme continues
MNV Exploration
• Targeting additional reserves in
underexplored areas in-between and
along strike of known ore zones –
surface and u/g exploration drilling
• New resources delineated at three
surface targets – mining already
commenced at two targets (Pebble,
Watershed)
• 2,900 m drilling completed in 2013 at
Chaynoye prospect (Western Flank
license) – results indicate potential for
new open-pit mineable resource
• 2014 exploration programme will focus
on wider Western Flank license
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• Record of 503,926 tonnes of ore mined
and processed in 2013
• 81,361 oz of gold equivalents produced
during FY 2013
• Increased efficiencies through major
improvements in mining and processing
implemented throughout the year
Novoshirokinskoye (Novo)
Novo – increasing throughput
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• First gold poured – plant in test mode
produced 7,077 oz of gold
• Plant construction completed during H2 2013
• Processing regulation adjustments in
progress
• Upside exploration potential in surrounding
license area
Stand-alone processing plant in ramp-up
phase
Belaya Gora
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• Good development characteristics – well explored
deposit, conventional gravity / CIL processing and
open pit mining
• JORC compliant resource (Indicated & Inferred) of
0.63 Moz with 5.04 g/t average grade
• Site preparation works in progress - roads,
storage facilities, foundation works in relation to
future plant and personnel accommodation
completed
• Design documentation under review by state and
environmental examinations boards
• Verkhne-Krichalskaya property (996 km2) –
large area with high potential to contribute
substantial amount of quality resources to the
future Klen operation
• 7,350 metres of exploration drilling identified
follow-up targets planned to be drilled in 2014
C h u k o t k a
Development project in Chukotka
Klen
Klen
Zeleny Mys
Bilibino
Pevek
Mayskoe
Dvoinoe
Kupol
Dalny
Kekura
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• JORC compliant resource of 2.89 Moz with
8.69 g/t average grade – significant exploration
potential
• Favourable ore metallurgy, open pit mining and
synergies with neighboring Klen project are
expected to make Kekura a low cost operation
• Advanced-stage development – camp facilities,
independent diesel power and ancillary systems
already in place
• Construction of a pilot plant with 150,000 tonnes
annual capacity is nearing completion, with
preparations for testing currently under way
• Site layout proposals along with preliminary project
design in progress
• 35,000 metres resource conversion drilling
completed in 2013
Advanced development project in Chukotka
Kekura
12Unkurtash
• 63 km² license covering 4 km long mineralisation zone
• The project hosts four distinct prospects, three of which, Unkurtash, Sarytube and Karatube
have been the focus of the Company’s extensive exploration activity
• JORC compliant resource audit in H1 2013 defines combined 3.7 Million ounces at ore grade
of 1.7 g/t (82% Measured and Indicated) for the three prospects
Unkurtash
Sarytube
Karatube
Baikonur
• Mining permits in hand for Unkurtash and Karatube
prospects – reserve calculation update for entire
Unkurtash project in progress in order to facilitate
C1+C2 category reserve registration with Kyrgyz
GKZ
• Engineering studies in respect of a planned large-
scale open-pit operation initiated
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Lyubov
• Targeting bulk-mineable gold ore for
low-cost open-pit operation at two sites
• Project design documentation completed and approvals
received by various regulatory bodies – project
currently under review by the State Examination Board.
Taseevskoye
• Project design documentation for part of the deposit
was completed in H2 2013 and is now under review by
the State Examination Board.
• Cut-off grade study for the Baley ZIF 1 tailings prepared
Development projects in the Zabaikalsky region
Lyubov / Taseevskoye
Evgraf – Resource Model
TASEEVSKOYE
TAILINGS ZIF-1
SREDNE-
GOLGOTAYSKOYE
BALEY TOWN
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• Production in 2014 (MNV, Novo and Belaya Gora) is expected to increase to
between 300,000 – 320,000 oz of gold and gold equivalents
• Belaya Gora – continue ramp-up to full capacity
• MNV – maintain stable production, keep costs in check
• Novo – improve efficiencies and increase plant throughput
• Chukotka projects – project development expected during 2014
• Exploration – maintain substantial exploration programmes at various projects
• Continue to review acquisition opportunities
Goals for 2014
2013 Operations Review &
Project Update
Russia & CIS Precious Metals Summit,
Moscow, February 2014
Werner P. Klemens,
Head of Exploration