Fed tests gold upleg
Gold’s outlook and fundamentals remain really bullish.
Kazakh gold miner RG Gold has launched a new processing plant worth more than $420 million. The added capacity is expected to enable the company to quadruple its 2023 output to approximately 190,000 ounces.
The new plant’s annual processing capacity amounts to approximately 5 million tonnes of gold-containing ore. It deploys CIP (carbon in pulp) technology, which uses coal particles during leaching to extract gold from low-grade ore at a low cost. The plant has been designed and constructed in accordance with all international safety and environmental requirements.
RG Gold currently operates the Raygorodok deposit in northern Kazakhstan, one of the country’s largest mines with 5.9 million ounces of gold reserves, based on the JORC Code. Its output is set to exceed 50,000 ounces this year.
The company is majority owned by Verny Capital, a Kazakh private equity group, which has been its shareholder since 2015. Resource Capital Funds (U.S.) also holds a 35% stake in RG Gold.
“The launch of the new processing plant is a key milestone for RG Gold. It is underpinned by the highest global industry standards using the latest innovation and technical expertise from Resource Capital Funds, our strategic partner,” Bulat Utemuratov, the key investor in Verny Capital projects said in a news release. “
The new plant allows us not only to quadruple RG Gold’s overall output, but importantly, it also provides the opportunity to boost investment in the region.”
“We invested in RG Gold in 2018. It was the first time that we invested in Kazakhstan as a firm, and from the very beginning of the due diligence process, we were impressed with the quality of the people, the quality of the institutions, and the commitment from everyone to do mining in a very environmentally friendly way and with the best interest of all stakeholders in front of everything else, especially for the local communities,” Martin Valdes, partner at Resource Capital Funds, added.
