Dec 29, 2014

Alrosa Wins Auction for Rights to Mine at the Molodo River Deposit in Republic of Sakha

OJSC Nizhne-Lenskoye (part of the Alrosa Group) won the auction for the right to carry out exploration and mining at the Molodo river placer diamond deposit located on the territory of the Republic of Sakha (Yakutia), Alrosa announced on December 26th.

The company said that it had bid RUB 51.776 million as against the opening bid of RUB 43.147 million for the rights.

The auction results are subject to approval by the Government of the Russian Federation, as per the bidding rules.

“Obtaining the right to develop this deposit is in line with the Alrosa’s development strategy and will allow the Group to expand its resource base in the Republic of Sakha (Yakutia),” a company release stated. The Molodo river deposit is located near the operating capacities of OJSC Nizhne-Lenskoye.

Alrosa also said that the commercial reserves of the Molodo riverbed deposit (С1+С2 categories) amount to 905.3 thousand carats of rough diamonds, with the non-commercial reserves of the same categories amounting to 188.8 thousand carats. The accounted forecast rough diamond resources (Р1 category) on the site amount to 712.6 thousand carats.