Mines and Money London: Mining Spotlight: Mikhail Damrin, CEO, Kopy Goldfields

Kopy Goldfields are a Swedish Junior Mining company operating in the Irkutsk region of Russia since 2007. The company has been listed on Nasdaq in Sweden since 2010 and are the only listed junior exploration company operating in the Irkutsk region of Russia. The company is made up of 4700 shareholders with 83% of them being Swedish.

Kopy Goldfields has a diverse portfolio of projects from greenfield exploration to feasibility. They contain 14 gold exploration and production licenses with a total license area of 2159km2. JORC report has stated that the portfolio of projects consists of 1.8Moz of bedrock gold.

What makes Kopy Goldfields very unique and successful is their exploration strategy. They implement their cash flow into the best exploration projects. The cash is provided by divesting some of their licenses by selling licenses, returning licenses back to the Russian state or by joint venturing licenses with other gold mining companies. Once the targets have been found, they convert resources into reserves and production with their partners and will either cash in by selling of the licenses or farm in on the license by joint venturing with other companies, eventually selling their stake. This added revenue will go back into developing further greenfield locations and develop resources for the future such as adding low cost value to the ongoing Northern Territories exploration programme in the Lena gold mining area.

The tenements and licenses of the Lena gold mining area is very valuable and provide a perfect opportunity to increase capital at Kopy Goldfields. They can be seen as a very valuable future investment project. The area has seen a 34% growth in gold production, with 733koz of Au being produced in 2017. There is great infrastructure in place as well as high exploration potential with numerous gold anomalies, and alluvial deposits indicate for bedrock gold.

Posted in Mines and Money London 2018

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