The Nezhdaninskoe deposit located in Republic of Sakha (Yakutia) was originally discovered in 1951 and since 1974 was subject to small scale test production. As of January 1, 2006 Nezdaninskoe reserves comprised 238.6 tonnes (7.65 million ounces) of gold under B+C1+C2 category, adjusted for 50% stake. In 2006-2007 additional exploration will carried out on the deposit and new feasibility study will be produced, taking into account various development models including open pit and underground mining. The license on exploration the Nezhdaninskoe deposit has OJSC South Verkhoyansk Mining Company, Polyus Gold's subsidiary. (CO. PROFILE: OJSC South Verkhoyansk Mining Company was created in 1997 with the purpose to develop Nezhdaninskoe gold deposit, one of the largest in Russia. SVMC was added to the company in September 2005 when CJSC Polyus acquired 50% interest in SVMC from Alrosa Investment Group. (CO. PROFILE: Polyus Gold is the leading gold producer in Russia and the only Russian company among the world’s largest gold producers. Company's reserves and resources (by JORC classification) as of January 1st 2006 are: 25.1 mln oz of reserves (Proved & Probable) 76.8 mln oz of resources (Indicated, Measured and Inferred). Gold production in 2005 totaled 33.5 tons (1 076 k oz). OJSC Polyus Gold was formed in March 2006 as a result of the spin-off of MMC Norilsk Nickel’s gold mining assets.)
