Russian agreement boost Minco's gold prospects

Precious metals development and exploration company Minco has secured option agreements over several gold projects in Russia.

Listed on the alternative investment market (AIM) in London, the Irish-registered firm has secured an additional option on a property which it claims has significant production potential.

Work has already begun for a one million tonne a year operation.

The crushing and stacking plant is under construction, Minco said in a statement issued today.

The reported "indicated" (C1) resource is 1.5m ounces of gold at an average grade of 2.6 grammes per tonne. Heap leach gold recovery is reported to be 80%.

In a statement today Minco said: "The exploration potential is excellent and the inferred resource (P1 and P2) is reported to be 5.7 million ounces of gold to a depth of 270 metres from surface."

The company said it had mobilised additional personnel to commence, geological, mining, metallurgical, commercial and legal due diligence on the property over the next 90 days.

This work will run concurrently with the work on the other properties under option.

Minco was formed as Irish Marine Oil in 1972.

It holds six prospecting licence located in south Co Wicklow and north Wexford, as well as one licence in east Co Kildare, just west of Blessington, Co Wicklow.