Highland Gold Acquires Licence for the Iska Ore Field in Khabarovsk Region
Highland Gold Mining Limited (“Highland Gold”, or the “Company”) is pleased to announce that the Company has acquired a license for exploration and mining rights for the Iska ore field in the Khabarovsk Region. The acquisition was made in an open auction on August 24 in Khabarovsk for a bid price of 1.87 million roubles (US$ 72.300).
The acquisition of the Iska property underlines the Company’s strategy of growing its asset portfolio in the vicinity of existing operations by adding quality exploration properties with a good potential for future gold production. The Iska license encompasses an area of 920 km sq. which is situated approximately 80 km to the south from Highland’s MNV operating mine and 20 km to the south of our Belaya Gora exploration property. Iska is well connected to local infrastructure and future exploration work on the property will thus benefit from synergies with the current operations nearby.
License terms for the Iska property include exploration and development for a total license period of 20 years. The license payment will be made within 30 days once the registration procedure has been completed. The Iska ore field is the geological continuation of the gold-bearing Belaya Gora volcano-tectonic structure where an advanced drilling program continues to deliver positive results.
The Iska property is relatively underexplored for gold but features striking similarities with Belaya Gora in terms of volcanic host rocks, geological structure, mineral assemblages and hydrothermal alteration, the latter marked by wide areas of intense clay alteration with zones of quartz and quartz-alunite mineralization. Several gold occurrences (Zimovie, Fadeeva, Brusnichnoe, Igrek) are reported throughout the property with grades in the range of 0.4 g/t – 34 g/t, and high-grade geochemical gold anomalies and gold placers in vicinity demonstrate the good potential of the property. A stockwork-type low-grade mineralization system has been partially explored at Iska and features similarities to that at Belaya Gora. More significantly, the Iska property hosts a large alunite deposit which is unexplored for gold. Such alunite mineralization together with the style of clay-alteration at Iska is analogous to the geological setting of unique gold deposits such as Yanacocha, Pascua-Lama, Pierina hosted within the Andean volcanic belt of South America.
Following an evaluation of data from previous explorers, a multi-disciplinary exploration program is now being designed which will include geophysical and geochemical surveys, and trenching and drilling programs for testing known mineralized zones.
Commenting on today’s announcement Henry Horne, Managing Director, said: “This is an important addition to our exploration portfolio and signals our desire to exploit properties that we believe to be of potential value. The positive results we are finding at Belaya Gora and the proximity of the license to our MNV site demonstrate that we are looking in the right area and the geological similarities of Iska are very promising.”
For further information please contact:
Henry Horne, Managing Director
Dmitry Yakushkin, Director of Communications Moscow: + 7 (495) 777 31 55
Dominic Palmer-Tomkinson, Head of Investor Relations London: +44 (0) 207 851 64 00
Alex Glover on +44 20 7930 9030