Kozlovskoe Deposit

Licenses
The Kozlovskoe deposit is being investigated and prepared for production under license for the Staroverinskaya gold bearing area (ChIT №12355 BR).

Location
The Kozlovskoe deposit is located in one of most explored fields of the Staroverinskaya gold bearing area. It is situated in the Kalgan District of the Transbaikal Territory, in the upper reaches of the Bilchiban, Sazhenka, Munia and Kozlikha valleys.

Geology
The structure of the field is influenced by the large Kutomaro-Kozlovskaya zone, which consists of several sub-parallel fault zones.
The zones consist of a series of en echelon cleavage fractures accompanied by a system of shear fractures. All ore zones have a complex structure. They consist of en echelon distributed sections of beresitized rocks with uneven impregnation and a fine network of sulfide veins. Massive sulfide ore veins are from 0.1 to 2 m thick with a high gold grade that usually occur in the center of the zone. Beresites have veinlet/nest sulfidation with a low gold grade below 1 g/t.
The ore bodies at the edges of the zone are uniform, consisting of steeply dipping slabs extending 50 to 600 along the strike and more than 200 m down the dip. The thickness varies from 0.1 to 4.73 m, averaging 1.1m. The ore bodies are spatially associated with lamprophyre dikes.
The primary ores are gold-arsenic-multi-metal. The main ore minerals are arsenopyrite, pyrite, galena and gold. Secondary ores are lead-sulfoantimonite, chalcopyrite, sphalerite, pyrrhotite, fahl ore, bournonite and boulangerite. Rare: pyrargyrite, argentite, native silver, stephanite, samsonite, chalcosine, bornite and enargite.
About 50% of gold is confined to pyrite-arsenopyrite ores; 40 %, in gold–silver–multi-metal ores.
Oxidized ores contain limonite, scorodite, pitticite, pharmacosiderite, bentonite, chalcosine, covellite, cerussite, anglesite, mimesite and kaolinite. Gold is present in oxidation zone minerals as admixtures in scorodite and iron oxide.

Geological coverage, reserves
Preliminary exploration of the field was carried out from 1965 to 1968. Further work in the field was canceled due to the complexity and economic impracticality of the process technology for arsenic-bearing gold ores available at that time.
GRE-324 LLC resumed geological exploration at Kozlovskoye in 2006.
Oxidized ore was explored on a 50×15m grid, 30m below the surface. Forty drill holes were drilled for a total of 2,200 lm. The oxidized ores are represented by quartz-kaolinite-limonite-scorodite alteration with sulfide relicts.
Detailed exploration was carried out on a 50×50 100m grid. A total of 117 drill holes of 10,677.6 lm were drilled.
Exploration has been carried out in the Central, Western, Northern, Novaya and Hydrogeological zones.
The following reserves were entered in the state balance as a result of the work carried out in Kozlovskoye field by TMRC Zabaikalnedra:

Production
Preparation for production at Kozlovskoye is planned by Rudtekhnologia starting in 2012 under the “Oxidized ore development in the Kozlovskoye gold deposit” project developed by the Transbaikal division of TOMS engineering JSC in 2011. Design capacity is 60 kt of ore per year.
The project is currently being reviewed by Glavgosexpertiza.