GPM GOLD INTENDS TO INCREASE MINING VOLUMES IN ARMENIA 2.7-3.7 TIMES

ArmInfo
2009-11-03 16:22:00

ArmInfo. The gold recovery company GPM Gold, which is included in
the GeoProMining Group, intends to increase the ore mining volumes
in Armenia 2.7-3.7 times to 1.5-2 mln t per year, the press-release
of the GeoProMining Office in Armenia says.

The press-release says that GPM Gold is conducting negotiations
with the concessionaire of Armenian Railway – "North Caucaus
Railway" on raising of ore transportation volumes from Sotk
Mine to Ararat in 2010. Preliminary plans include expanding of
Sotk-Vardenis-Hrazdan-Ararat branch line capacity for transportation
of 1,5-2 million ton ore annually.

During the first month after re-commissioning of Ararat plant
(November 2008) the Company mined 21 473 ton ore, in December –
30 410, in January of 2009 mining volumes increased up to 31 285,
and in February – up to 38 000 ton. Presently the company is mining
and processing 45 000 ton ore monthly. In the result, the Company
is producing 30-40 000 ounces of gold annually. With a view to raise
processing and recovery volumes GPM Gold is developing a new investment
program, which suggests re-equipment of Ararat plant. In the result
of such re-equipment, plant productivity will raise up to 80-100 000
ounces of gold annually (1 ounce = 31,1034768 grams).

Russian Company GeoProMining obtained 100% shares of Sterlite Gold
Ltd. from International Vedanta Resources in September of 2007.

Sterlite Gold was the sole owner of AGRC. Investments for acquisition
of the package of Vedanta Resources, repayment of debts, redemption
of stocks from minority shareholders, as well as maintenance of the
project and staff during a year and a half and also re-equipment
of plant have formed more than 160 million USD. GeoProMining Group
is an international private company of diversified metal resources,
founded in 2001. Company’s production is gold in the form of "Dore",
as well as copper, molybdenum and antimony concentrates. The group of
companies are engaged in metal mining in Russia, Armenia and Georgia.

Company’s main assets in Armenia are: Sotk gold mine, Ararat processing
plant and Agarak Copper-Molybdenum Combine.