21 Mar 2017
The Avellana Gold Team on the Prospects of the Project, International Conference within PDAC 2017, Canada
Avellana Gold Company has presented a project in the development of Muzhiyevo polymetallic deposit at the conference Ukraine: Opportunities in Extractive Industries, dedicated to Ukrainian developments in the field of mining. The event was held within PDAC 2017 International Convention, Trade Show & Investors Exchange and was initiated by the Chamber of Commerce and Industry of Ukraine. According to Brian Savage, the CEO of Avellana Gold, Ukraine is of interest for the international community primarily as a country with undeveloped geological potential. And this convinces of the need to elaborate a new development strategy for the company. ‘During my first visit to Ukraine I got a lot of optimistic assurances, and I don’t want to believe in the opposite. The number of investors interested in our project by far exceeds the scope of investment we need. We have to guarantee reliable protection against political risks to them’, - indicated Brian Savage. Also, the CEO of Avellana Gold told about the investment complexities for the project implementation: ‘Now investors are ready to give money even for some projects in the African territory at the rate of 20% annual, but the requirements to profitability in Ukraine are much higher. For us, as for core investors, there arises the need to look for cheap resources of institutional investors (that requires years) or sacrifice our own profits by undertaking the larger part of risks for the first five years ourselves’. During asset acquisition and a detailed analysis of the legal side of the matter Avellana Gold opened up new aspects of business development. The company has signed a number of primary agreements, therefore, it is likely that already next year the team of Avellana Gold will present a new project in Toronto – Avellana Exploration. ‘The geological data we posses gives grounds for a meaningful talk. But I hope to get more responses from the authorities during my visit to Ukraine at the end of March’, - adds Brian Savage. Charles Beaudry, the head of Avellana Gold’s consultancy group in geology, also took part in the conference. He shared his vision and prospects of the Muzhiyevo deposit development: ‘Over the last 3-4 years my colleagues could not find application for their knowledge, but now the situation is different. While last year lithium was in demand, now everybody pays attention to the zinc market situation. The rise in its prices is unavoidable. I am glad that zinc takes a special place in Avellana Gold’s product portfolio. But personally for me Avellana Gold is an opportunity to get acquainted with the geology of the Carpathians in general’. Charles Beaudry draws attention to another trend mentioned at PDAC 2017. That is reduction of the cost of underground extraction technologies, creating the basis for the increase in the resource base: ‘We would be happy to use those new developments in Ukraine’. Besides Avellana Gold, such entities and companies as the State Service of Geology and Mineral Resources of Ukraine, Canada-Ukraine Chamber of Commerce, UMG, Black Iron, Pluto Investment, Velta, Techika, Classic Jewelry House Lobortas, Paletcom S.R.L., CUTIS Project, Naturallia, VIP-Oil LTD, and others have participated in the conference.