In 2005 shareholders of ZAO “Bazovye Metally” started a project for search and acquisition of perspective deposits of precious metals in the Russian Federation. A license for geological exploration and production of gold within Stadukhino ore-alluvial area was gained. The license is c. 1500 km2 and a full complex of geological works was executed on c. 10% of the licensed area. Company drilled about 55 thou. linear meters of holes and 650 thou3 meters of open-cut works. As a result of extensive works a hardrock ore deposit with reserves of c. 90 tons (C1+C2 Russian GKZ classification) and tremendous additional potential was opened. Prognostic estimated resources of deposit are 270-300+ tons of Au, 5,000 tons of Ag.

Micon international consultants confirmed c. 90 tons of gold reserves of the Kekura deposit in the JORC classification, most of which are open-pit minable.

A pilot plant for multi-tonnage sampling with a capacity of 150,000 tons of ore with up to 2 tons of gold commercial production is being constructed now and is planned to commence its operations in Q3 2012.

After the pilot plant will be put in operation a construction of gold processing plant with the capacity of 1-1.3 mln. tons of ore with production of up to 10 tons of gold pa is planned to commence. Full capacity to be reached in 2015 – 2016.