GV Gold Production Results

GV Gold (Vysochaishy, PJSC) is a highly efficient and rapidly developing gold mining company, the priority of which is an onward development of its assets and safe labour conditions of its employees.

Health and Safety

The lost time injury frequency rate (LTIFR) for H1 2017 was 0.43, the index was at the level of 0.22 for 2016. Despite the fact that the index has increased in quantitative respect, LTIFR has improved qualitavely.  Due to the labor safety improvement, the Company managed to avoid severe and fatal accidents, as compared to H1 2016 when unfortunately one fatality took place. Despite the taken safety measures, workers of the Vysochaishy and Drazhnoye sites sustained 5 light injuries, based on the investigation of which some additional prevention measures were taken.

For the purpose of further safety culture development, the Company carries on improving the environment, health and safety (EHS) system. In the reference period, it approved the EHS Policy of GV Gold (Vysochaishy, PJSC), the “Golden Safety Rules” handout for workers, carried out the internal EHS risk management system audit within the production facilities of the Irkutsk business unit.


In H1 2017, GV Gold production totaled 2.2 t (70 koz) of gold, which is 16% lower than the respective figure of the corresponding period of the previous year. A decrease is associated with the scheduled reduction of the mined ore output tonnages (-13%) and processing of lower grade ores (-16%) at the Irkutsk business unit assets. As compared to the corresponding figure of H1 2016, the tonnage of overburden stripped increased as the result of commencement of mining operations at the Drazhnoye deposit in Yakutia and growth of stripping at the Golets Vysochaishy deposit (+20%).

In H1 2017, the GV Gold revenue from sales of gold totaled USD 84.1 Million, which is 14% lower than the respective figure of the corresponding period of the previous year. The average gold sale price grew to the level of USD 1,239 /oz.

The Company’s production target for 2017 is 6.5-6.7 t (209-215 koz) of gold. An increase of up to 30% against the result of 2016 is expecting due to the commissioning of the Taryn Mine and launch of the Ugakhan Mine in the pre-commissioning mode.

     H1 2017     H1 2016  Change, %
     Gold produced by GV Gold   kg      2,195      2,597 -15%
koz      70.6      83.5 -15%
     Irkutsk business unit kg       2,009      2,474 -19%
koz      64.6      79.5  -19%
     Taryn business unit kg      38.6      –      n. a.
koz      1.2      –      n. a.
     Aldan business unit kg      148      123 20%
koz      4.7      3.9 20%
     Gold sold*   kg      2,111      2,510 -16%
koz       67.9      80.7 -16%
     Average gold selling price       RUB/g      2,310      2,769 -17%
USD/oz      1,239      1,218  2%
     Revenue of GV Gold*   M RUB      4,876      6,949 -30 %
M USD      84.1      98.3  -14 %

*Excluding Taryn business unit

Irkutsk Business Unit

The Irkutsk business unit comprises the Vysochaishy and Ykanskoye Mines located in the Bodaibo Area. The tonnage of gold produced in January-June 2017 totaled 2 t (64 koz) of gold, which is 19% lower than the respective figure of the corresponding period of the previous year. A decrease in production is associated with the scheduled processing of lower grade ore (-15%) at the Vysochaishy Mine. The gold recovery index remained at the level of the previous year and made 81%. Following the results of H1 2017, the stripping ratio increased to 1.56 m³/t. The tonnage of ore processed totaled 2 Mt.

For the purpose of the Irkutsk business unit production efficiency improvement, the Company develops a set of measures aimed at operations optimization and the process control improvement at the Vysochaishy Mine (Plants 2, 3). For this purpose in H2 2017, it is planned to audit the production chain from the mining operations to the gold production. The Company will start implementing the set of measures developed based on the findings of the audit in 2017-2018.

In order to enhance the motivation of workers and improve the working conditions, in July, 2017 the Company started staged introduction of the rotational work scheme. The changes will be introduced at the production sites of the Irkutsk business unit first, and then – at the Taryn business unit.

     H1 2017     H1 2016  Change, %
Overburden stripped  ‘000 m³     2,839      2,361 20%
Ore mined      kt     1,825      2,106 -13%
Stripping ratio      m³/t     1.56      1.12 39%
     Ore processed      kt     2,117      2,212 -4%
     Plant 2, Vysochaishy Mine      kt     549      606 -9%
     Plant 3, Vysochaishy Mine      kt     1,532      1,564  -2%
     Plant 4, Ykanskoye Mine      kt      36      41 -12%
     Sands processed      ‘000 m³      30      25  21%
     Average grade of ore in ore      g/t      1.16      1.38 -16%
     Plant 2, Vysochaishy Mine      g/t      2.02      2.37 -15%
     Plant 3, Vysochaishy Mine      g/t      0.85      1.00 -15%
     Plant 4, Ykanskoye Mine      g/t      1.47      1.34 10%
     Average grade of gold in the sands      g/m³      0.64      0.91  -30%
     Gold recovery, Mills      %      81      81 0.7%
     Plant 2, Vysochaishy Mine      %      87      88 -2%
     Plant 3, Vysochaishy Mine      %      76      73 4%
     Plant 4, Ykans      %      80      80 -1%
     Gold recovery, Washplant GGM-3      %      91      91 0%
     Gold produced     kg      2,008      2,474 -19%
    koz      64.6      79.5 -19%
     Plant 2, Vysochaishy Mine     kg      962      1,271 -24%
     Plant 3, Vysochaishy Mine     kg      988      1,147 -14%
     Plant 4, Ykanskoye Mine     kg      41      36 -12%
     Washplant GGM-3     kg      17      20 17%
     Gold sold     kg      2,014      2,509 -20%
    koz      64.8      80.7 -20%
     Average gold selling price      RUB/g      2,307      2,769 -17%
     Revenue from gold sales      M RUB      4,646.8      6,949.5 -33%
     M USD      80.2      98.3 -18%

Aldan Business Unit

Development of the Bolshoy Kuranakh alluvial deposit (buried placer) located in the Aldan Area of the Republic of Sakha (Yakutia) is carried out by SAKHA Gold Mining, CJSC, the Aldan business unit. The dredging fleet consists of three bucketladder dredges: one 250-L dredge and two 400-L dredges.

Over three months of the operations from the start of the season, the enterprise produced 147.7 kg of gold, which is 20% higher than the respective figure of the corresponding period of the previous year. The dredges processed 995 thousand m³ of sands which is 63% higher than the throughput in April-June, 2016.

Improvement of the performance is resulting from a pilot exploitation of the second 400-L dredge and a high quality inter-seasonal maintenance of the equipment.

    H1 2017      H1 2016      Change, %
    Sands throughput      ‘000 m³      995      609         63% 
     Dredge 6 (250 L)      ‘000 m³      252      257       -2%
     Dredge 135 (400 L)      ‘000 m³      356      312        14%
     Dredge 400H №1 (400 L)*      ‘000 m³      387      40      868%
    Average grade of gold in the sands     g/m³      0.148      0.202      -27%
     Gold recovery      %      75.2      78.4      -4%
     Gold produced        kg      147.7      122.8      20%
     koz      4.7      3.9      20%
     Dredge 6      kg      14      28.5      -51%
     Dredge 135      kg      98      93.2      5%
     Dredge 400H №1*      kg      35      1.1      3082%
     Gold sold        kg      97.4       –      n. a.
     koz      3.1       –      n. a.
     Average gold selling price        RUB/g      2,360      –      n. a.
     USD/oz      1,258      –      n. a.
     Revenue from gold sales        M RUB      229.7      –      n. a.
     M USD        3.9      –      n. a.

*In 2016, Dredge 400H №1 was commissioned, pilot exploitation

Development Projects


Exploration and development of the Drazhnoye deposit located within the Oimyakon Area of the Republic of Sakha (Yakutia) are effected by the Taryn business unit. Geological reserves of the deposit total 35 t (1.12 Moz) of gold. In the autumn of 2017, Stage 1 of the Taryn Mine with the design capacity of 700 kt of ore p.a. will be commissioned. After the plant attains its design capacity, the annual production will achieve 2.7 t (87 koz) of gold. Taryn Mine is the largest hardrock gold mining company in the Oimyakon Area and is the launch pad for development of other neighboring deposits.

At the moment, the pre-commissioning operations are carried out at the plant for timely commissioning of the enterprise and achievements of the target production of 1 t (32 koz) of gold in 2017. In February, 2017, mining operations were commenced at the deposit. The tonnage of ore excavated in March-June, 2017 totaled 255 kt.

In H1 2017, TGMC, JSC obtained the technical conditions for 8 MW and concluded the contract with Magadanenergo, PJSC for technological connection to the power grid.


The Ugakhan deposit is located within the Bodaibo Area of the Irkutsk Region, 25 km to the west of the Golets Vysochaishy deposit. The design capacity of the plant and the target production are 2.6 Mt of ore p.a. and 3 t (96 koz) of gold p.a. correspondingly.

By the end of the year, it is planned to launch the Ugakhan Mine in the pre-commissioning mode. Mine connection to the power grids is expected in 2018.


The Krasny project is a joint venture of GV Gold (Vysochaishy, PJSC) (holding a stake of 51%) and Kopy Goldfields АВ (holding a stake of 49 %). The Krasny deposit is located in the Bodaibo Area of the Irkutsk Region, 75 km from Bodaibo. Following the accomplished exploration program the C1+C2 category geological resources were increased from 9.77 t (314 koz) to 44.2 t (1.42 Moz) (according to the operating calculation) and the cutoff grade estimation report was drawn up.

In 2017, the Company carries on exploration operations aimed at resources expansion in the central part of the deposit, and the gold prospecting operations in the northern part of the license area. Based on the results of exploration operations the Company will make a decision in regard to the start of preparation of the deposit to commercial development and construction of the mine.