Britain's Highland Gold Mining will soon receive a 20-year licence to run two medium-size deposits in Russia's far east, adding to its fast-growing list of gold assets in Russia, the company said on Monday.
Highland, on an expansion spree in Russia, acquired the Talatui and Novoshirokinskoye deposits in 2002 but had so far relied on temporary licences.
"The licences are awarded on the basis of technical and economic proposals and are expected to be formally issued by the Russian Federal Ministry of Natural Resources within the next few weeks," Highland said in a statement.
A Highland official later told Reuters a regional tender commission had already recommended the Natural Resources Ministry consider Highland as the only likely candidate for the licence.
"There is no doubt we are going to get it," the official said. Highland's stock rose 5.49 percent to 244 pence by 1130 GMT in London.
The acquisition of the Novoshirokinskoye mine, also rich in silver, zinc and lead, points at Highland's efforts to diversify its business in Russia.
The deposits, in the Chita region near Russia's border with China, sit alongside Highland's Darasun mine which opened this month and will produce about four tonnes of gold next year.
Highland's other deposit in Russia, Mnogovershinnoye, produces about six tonnes of gold a year. The company's total production is expected to reach 12.2 tonnes in 2006.
Based on a preliminary feasibility study, Novoshirokinskoye has estimated gold resources of 1.54 million ounces (48 tonnes) at an estimated grade of 5.1 grams per tonne, and 31.5 million ounces (980 tonnes) of silver at an estimated grade of 104 grams per tonne.
Zinc resources stand at 177,000 tonnes and lead at 396,000 tonnes.
After its expected launch in 2005-2006, the mine would produce 55,000 ounces of gold, 1.05 million ounces of silver, 13.5 tonnes of lead and 11.3 tonnes of zinc concentrate a year, Highland said.
The Talatui deposit has mineral resources at 1.2 million ounces (37.5 tonnes) at an average grade of seven grams per tonne. Highland did not say how much gold it is expected to produce and when it would reach full capacity.
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