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. Last Updated: 07/27/2016

Kamchatka Gold Delayed Until Late '09

Trans-Siberian Gold said Thursday that it would produce the first gold from its Asacha project in the far eastern Kamchatka region in the second half of 2009, later than previously expected.

The London-listed company said it would mine and stockpile 40,000 tons of ore by the end of December 2008, ahead of producing its first gold.

"The directors consider that this delay should not endanger the Asacha license, given the progress that will have been achieved by the end of December 2008," Trans-Siberian Gold said in a statement accompanying its first-half 2007 results.

"The delay will also not result in any increase to the capital cost of the project," it said.

Trans-Siberian Gold said it had spent $41.6 million on the project by July and that a further $62 million must be invested before production begins. Ore throughput capacity at the Asacha plant will be 150,000 tons per year.

The company earned $40 million selling two subsidiaries in Siberia to AngloGold Ashanti this year and said this would be sufficient to fund developments until the beginning of the second quarter of 2008.

The company said it planned to raise additional equity, debt finance, equipment supplier credits or a combination of all three to fund the remainder.

Trans-Siberian Gold posted a $17.6 million profit in the six months to June compared with a loss of $2.3 million in the same period last year.