RG Gold Successfully Implements Its Plans as to South and North Raygorodok Fields

This spring, RG Gold, a company closely associated with Bulat Utemuratov’s business interests, launched the third crushing and sintering complex at the fields of South and North Raygorodok in Akmola region. The launch of the complex along with the second leaching workshop will increase the annual ore processing capacity from 1.3 million tons to 2 million tons of ore, as well as allow producing about 45-50 thousand ounces (1.5 tons) of gold per year. The amount of investment to the production expansion for 2017-2018 made up $6.7 million, while 140 additional jobs were created.

"To produce just a gram of the precious metal, we need to process more than a ton of ore. But there is also a positive moment – in this deposit the ore is technologically simple, it is easy to extract gold from it. We use a simple and cheap heap leaching method. Since there are no harmful impurities, which complicate the leaching, RG Gold manages to achieve a high gold recovery ratio of over 80%," says Serik Syzdykov, General Director of RG Gold.

Simultaneously with the mining and processing of oxidized ores, the company develops a project of a gold recovery plant for the processing of primary ores located on the lower horizons of the fields. Preliminary results showed a gold extraction ratio of more than 85% in a lab and pilot-scale environment.

The gold recovery plant will be built using direct leaching technology with the processing capacity of up to 6 million tons of ore per year, which will produce about 160,000 ounces of gold per year and create 1,000 additional jobs. The expected amount of investment to the construction of the plant will make up $ 250-300 million. The launch of the plant is planned for 2021-22.

"The complex was built on time and within the allocated budget. In addition, the company successfully built new infrastructure facilities. At the same time, the project development for a gold recovery plant aimed at processing primary ores goes full blast. The experience gained during the expansion of current production allows us to look ahead to the success of the new project with confidence," said Davron Rustamkulov, Deputy General Director for Investments of Verny Capital, which manages Bulat Utemuratov’s funds.

RG Gold invested more than $12 million in geological exploration for the period of 2014 -2017. AMC, the Australian company, estimated the resources taking into account additional drilling, completed in May 2017. Resources have increased to 6 million ounces. The company intends to continue exploration and prospecting works in the contract area and has already developed a new program of geological exploration.