Uzhuralzoloto Increased Gold Production in Chelyabinsk Oblast

21.04.2009 — News

THE CHELYABINSK OBLAST.

The Chelyabinsk Oblast deposits of OAO Uzhuralzoloto Group of Companies (UGC) [Uzhuralzoloto - Russian for "South Urals Gold"], - Svetlinskoye, Kochkarskoye, Western Kurasan, and Southern Kurasan - have increased the gold production by 3% in the first quarter of 2009 compared to the same period of the previous year. 24,980 troy ounces of the precious metal have been extracted in the January to March period.

On the whole the UGC has cut down the production of gold in the first quarter of 2009 by 4.8% - down to 30,200 troy ounces. The company informed RusBusinessNews that the decrease is determined by the conservation, as from October 2008, of the Darasunskoye site.

The Kommunarovskoye site in the Republic of Khakassia has cut down the production by 12.7%, down to 5,220 troy ounces. "The decrease had a planned nature; it happened due to the large amount of the preparation work in the difficult conditions of an underground mine", assert the UGC representatives. Due to the seasonal nature of the work the production has been stopped at the Drazhny site in the Krasnoyarsk Krai.

In terms of volumes of the production of gold OAO Uzhuralzoloto Group of Companies is fourth in Russia. In 2008 the gold produced at all sites of the company amounted to 169,200 troy ounces (5,261 kilograms).