Russian gold producer Nordgold has begun mining at a satellite deposit by its Lefa gold mine in Guinea, which will boost production at the operation.
The Diguili deposit, located about 35 km from Lefa’ processing facility, is considered a core pillar of Nordgold’s strategy to expand its resource and reserve base through both organic growth and selective acquisition of high value projects.
“Our acquisition of Lefa in 2010, combined with the extensive exploration programme we have undertaken since then, is precisely in line with that strategy,” COO Louw Smith said in the statement.
Diguili’s proved and probable reserves increased from 78,000 ounces at the end of 2020 to 138,000 ounces in 2021 thanks to an intense exploration program.
The gold miner, majority-owned by billionaire Alexei Mordashov and his sons Kirill and Nikita, has become a key contributor to Guinea’s economic and social development.
Lefa is owned by Société Minière de Dinguiraye, in which Nordgold holds a controlling interest of 85%, with the remaining 15% held by the government of Guinea.
With four mines in Russia, one in Kazakhstan, three in Burkina Faso, one each in Guinea and Kazakhstan and several prospective projects in feasibility study, Nordgold expects to boost production by 20% over the next five years. In contrast, production at the world’s largest gold miner, Newmont (NYSE: NEM) (TSX: NGT), is set to remain about the same until 2025.
Nordgold is also seeking to go back to the London Stock Exchange, one of the world’s oldest markets, which left in 2017.