Julietta Gold

completed

The project will develop the Julietta gold and silver mine, including development of an underground mine and a processing plant, and construction of associated infrastructure facilities and access roads. At full capacity, Julietta will process 122,500 tonnes of ore per year to produce 0.4 million oz. of gold and 6 million oz. of silver over the initial 4.5 year mine life. The mining resources estimated at 0.6 million tonnes can be upgraded to the proven and probable category with additional capital expenditure which would extend the life of the mine by another 5 years. A combination of high gold grades and high gold recovery should make Julietta one of the world''s lowest cost producers. The project will have a positive development impact on Russian economy. The successful implementation of the project will support local government''s efforts in attracting foreign investors to the mining sector and will further contribute to the development of the business environment conducive to the foreign investment. It will earn foreign currency through metal export, and generate tax revenues for the local and central governments. Technology and management skills will be transferred, and jobs will be created in the remote community where there are few alternatives.IFC''s involvement in the project will mitigate political risks and provide a demonstration effect for future private sector mining investments. In addition, the presence of IFC would further ensure that environmental care and diligence at Julietta would be maintained at appropriate standards, which can be used for future mining projects in Russia.