License UDE Nr 12568 TE for extraction of polymetallic ore at Ozernoye deposit in Yeravninsky district of the Republic of Buryatia was issued on  August 3, 2004 and is valid  up to June 15, 2024. The licensed allotment is located 140 km north of Mogzon railway station (Trans-Siberian main line), 30 km away from Ulan-Ude-Chita federal highway, 60 km  from  Sosnovo-Ozersk, a district centre with more than 10 000 population.

Ozernoye deposit is considered  to be one of the largest by world standards.

Minerals reserves and resources on the State Minerals Balance Sheet of the Russian Federation (Protocol of the USSR State Commission on Mineral Reserves (GKZ) Nr 5869 of 19 January 1970)

Resources according to JORC

* There is a processing technology allowing obtaining:

• Zinc concentrate with 53% Zn grade and 85% recovery
• Pb  concentrate with 51.3% Pb grade and 70% recovery
  

Estimated capacity of Ozerny GOK

* Based on total C₂ reserves and P₁ resources

Long-term working plan

Intermediary results of project implementation

Within 2005-2009 there was accomplished a wide range of front-end engineering and design works according to Russian and Western standards, in particular:

• The works with reference to  mining and processing enterprise and its adjacent  infrastructure  design have been commenced;  international tenders on complex delivery of mining equipment, processing plant and thermal power plant have been opened;
• There has been constructed  a required infrastructure, including a shift camp, core storage, on-site roads, a bridge crossing, VL-10 kV power line, mobile and Internet communications.
• There have been launched the works on deposit  development and processing plant construction; stripping works are under way;
• The problem of external financing has been elaborated: the Investment Feasibility Study of  Ozerny GOK Construction has been worked out  and positively appraised;
• There have been settled relations with Lundin Mining (its share was bought out); and Hatch (the BFS draft contract has been accomplished).

Main 2010 goals

• To work out a technical project of Ozerny GOK construction based on a  contract with the “Sibtsvetmetniiproekt”;
• To carry out an engineering survey for Ozerny GOK tailings and pyrite storages, water-supply line, TPP, road and railroad;
• To fulfill the key 2010 license agreement terms, i.e. to put in operation a mining enterprise with a 1 MMT ore output per year in 2010 3rd qrt;
• To find external financing for Ozerny GOK construction by way of participating in share capital, debt or project financing, equipment supplies financing;
• To open tenders and work out proposals on supplies and construction of the main GOK sites  and infrastructure, focusing on processing plant, TPP and  mining equipment;
• To carry out optimization of the project ownership and management structure.