Western Pinnacle to evaluate gold deposits in eastern Siberia

Moscow-based Western Pinnacle Mining (WPN-V) has signed an agreement to evaluate three gold deposits near Chita in eastern Siberia, Russia.

Western Pinnacle will set up a 50-50 joint venture with the Russian company Zabaikalzoloto to evaluate the Darasun, Teremkinskoye and Talatuyskoye deposits, all of which are situated within 12 km of the town of Vershina Darasunsky.

According to Russian classification, the resources for the three deposits in the A, B, C1 and C2 categories (which roughly equate to proven, probable and possible categories in the West) total roughly 7.7 million tonnes grading 12.3 grams gold per tonne. Both Darasun and Teremkinskoye have been mined by underground methods while Talatuyskoye is relatively unexploited.

Meanwhile, citing the decline in gold prices, Western Pinnacle has suspended a feasibility study at its Kyuchus gold deposit in the northern Sakha Republic (T.N.M., July 14/97).

The company says it is currently negotiating both with federal authorities regarding production sharing at Kyuchus and with local authorities regarding tax concessions for the project.

In November, Western Pinnacle completed a US$3.5-million acquisition of a half interest in the Russian joint-stock company Geometall Plus, which holds a 28.7% interest in Amax Gold’s (au-n) Kubaka gold mine north of the city of Magadan. Elsewhere in the Russian Far East, Geometall Plus holds licences to develop the Nyavlenga and Dvoinoye gold deposits and to explore and develop the Chai Yuria gold field.

Also in November, the Serebro-Ducat joint venture between Geometall Plus (30% interest) and Pan American Silver (paa-t) (70%) won the tender to develop the large Ducat silver deposit, situated in the Magadan region, where resources are pegged at 31.4 million tonnes grading 473 grams silver and 1 gram gold per tonne.

In other news, Western Pinnacle is reporting that it has entered into a preliminary agreement, through its wholly owned subsidiary WP Oil, to acquire a controlling interest in a Russian oil exploration company active in western Siberia.

For the nine months ended Sept. 30, 1997, Western Pinnacle recorded a net loss of $119,045 compared with $35,826 for the same period the previous year.