CORPORATE NEWS

Avellana Gold will apply only environmentally friendly technologies in polymetal mining Avellana Gold will apply only environmentally friendly technologies in polymetal mining
Environmental situation in the territory of Muzhiyevo deposit is difficult, since after the activity of previous mining companies ore dumps have been left in the vicinity. They contain concentrated ferric sulphides and other heavy metals oxidizing surface water run-offs. Elimination of such consequences is the primary task of Avellana Gold in the territory: the company has already started reclamation and intends to invest about 50 mln. dollars into it, and in total invest twice as much into the deposit development project. As the head of Avellana Gold, American investor Brian Savage states, as of today the company has already got acquainted with the history of the field development. There has been developed a new project that aims to ensure comprehensive field development and avoid environmental problems caused by the previous operator. There has already been cleaned the pond-water setting area, located at the entrance to Muzhiyevo. The company also installs environmental filters with limestone and zeolites, designed for discharge water neutralization. ‘So far there are 450 tons of dumps close to the deposit, and we as the investing company must liquidate them on our own. Otherwise, one cannot start mining there’, – states Savage. Unlike companies-predecessors that used to mine polymetals here, Avellana Gold will use only innovation technologies that are environmentally safe, viz. flotation method. This technology is much safer that cyanation (cyanide) that was used before, in the 80ies, and that affected the environment. The field development project of Avellana Gold in Zakarpattia is an absolutely new technological project, with no counterparts over the past 20 years. It is the first in Ukraine to create opportunities for mining business development due to private foreign capital. The production place is expected to provide some 500 people with jobs for the nearest 30-40 years. Let us recall that last year Avellana Gold acquired companies Carpathian Ore Company (Karpatska Rudna Kompaniya) and Western Exploration Company (Zakhidna Heolohorozviduvalna Kompaniya), which have got special permissions for mining and exploration of polymetallic ores in Berehovo ore field (Muzhiyevo, Berehovo and Kvasove fields). Over 2017 the company will only be preparing Muzhiyevo field for operation, and next year it intends to start gold mining here.