Artur Yerinjakyan, ArmInfo
“GeoProMining Gold” LLC is the biggest gold producing company in Armenia. The Company is a part of Group GeoProMining Group International Company, and owns country’s gold production main assets– Sotk gold mine and Ararat gold recovery plant. The GeoProMining Gold LLC announced his ambitious plans on development and modernization of production processes. ArmInfo reporter interviewed the General Director of the Company about the Company’s achievements in past year and plans of the near future.
Mr. Vetik, your Company resumed production processes in 2008, what is the dynamics of growth, how much gold was produced last year and what is the prognosis of production volumes for the current year.
During two months of 2008 the Company produced 135 893 gram of gold (4369 ounces). In the first month after the plant was restarted (December of 2008) the Company mined 21 473 ton ore, in December - 30 410 ton, in January of 2009 mining volumes increased up to 31 285 ton, and in February – 38 000 ton. During the whole 2009 GPM Gold mined 476 200 ton ore and processed 4486 067 ton (difference is because of remainder ore). As a result, the Company produced 944 369 gram of gold in 2009, which form 30 362 troy ounces. Presently the Company mines and processes on average 35 000-40 000 ton of ore monthly. In 2009 the dynamics of growth is obvious – average monthly growth has formed 10%. This result is achieved both, through installment of new machinery, which contributed to mine operation efficiency growth, as well as through regular increase of production capacities.
Could you tell about gold production plans in 2010?
2010 budget plan suggests mining and processing of 575 850 ton of ore and gold production of 1 ton 190 kg (38 234 ounces). It is also planned to carry out stripping works of 14 million 940 thousand ton of ore. Mining and transportation volumes will be held the same as in 2009 (500 000 ton ore), the main increase shall be reached at the expense of stripping works.
During the current year, the Company will change its strategic plans at Sotk mine. The mine will be reconstructed, which will include underground mining. Regardless of the fact that Sotk mine comprises high-grade ore, it is a complex ore - stripping coefficient is high, the ore is hard and a multi-step processing system is required, which entails considerable investments, technological and structural changes. In the first place, we are interested in increasing of the volumes of the received metals. If antimony content is high in the ore, it negatively influences gold extraction.
What steps are you going to takе for plant modernization?
We have commissioned specialized companies research of Sotk mine, in order to finally understand what type of technology must be used for gold extraction. Sotk mine ore types are different, and in that relation metal extraction technologies must be complex. Eg. Australians have a patented process „Albion”. Possibly, with its help we will be able to reach effective extraction. In the near future the researches on technological options will be finalized. The next step will be project design preparation, for which it will be necessary to attract funds. In 2010 Sotk mine will be technically re-equipped, which will provide a possibility to considerably increase mining volumes. Capital investments will be made also at Ararat plant.
In the medium-term perspective we expect, that realization of our investment programs will provide a possibility to raise mining and processing volumes of ore, in the coming several years, from 45 000 ton to more than 100 000 ton monthly.
Growth, most likely, is connected with modernization plans of Ararat plant?
Undoubtedly, we plan not only reconstruction, but also partial construction of a new processing plant in 2012. Presently GeoProMining is conducting negotiations with planning organizations on construction and reconstruction of the existing plant. New concentration technologies will be installed at the plant – the best gold ore concentration technologies, which nowadays exist in the world. What about exact terms of realization of the project, it will take about two years. It consists of several phases. Project design involves also the issue of land allottment for construction of a new plant, which, I think will take some time. State institutions are also interested in realization of the project, which will increase production efficiency and will raise social-economic conditions of the region.
What countries is the valuable metal exported to?
Final product of the Company – Dore, alloy of gold and silver is exported to a Canadian refinement plant for receiving of a final product.
February 17, 2010