Ovoca has two projects in the Magadan Region, Russia. The Magadan Region is located in the Far East part of the country, directly North of Japan. The region’s total population is 170,000 and cities which are important for Ovoca’s operations include Magadan (population 100,000), Susuman (7,800), Omsukchan (4,500) and Seimchan (3,700).
The Magadan Region in geography is marked by rolling mountains with a maximum height of 2,000 meters above sea level. The region is in a permafrost zone, and although there is vegetation consisting of various arctic trees and shrubs. The area’s climate is continental with long winters up to seven months and a short dry summer. The minimum average air temperature for January is between -40 and -50 degrees Celsius and the maximum average air temperature for July is between +10 and +20 degrees Celsius. Snow cover is established in early October and melts by the end of May.
Because of the harsh climate and general poor infrastructure development of the region, exploration and mine building logistics are very seasonal. Equipment is moved to off-road sites before the winter thaw starts in April, so that frozen riverbeds can be used as a transport system and so that wet bogs do not hinder movement. While drilling and other operations can be conducted in winter, summer is a more effective time to work.
Ovoca’s two properties in the Magadan Region are: Stakhanovsky and Rassoshinskaya.
Stakhanovsky is located approximately 40 kilometres north of Susuman, the second largest city in the Magadan Region. It is accessible by year-round road and there is power infrastructure on site. Internal preliminary estimates suggest a gold resource (non JORC code nor Russian standard compliant) of over 700,000 ounces. The Company intends to put Stakhanovsky into production by 2013.
Rassoshinskaya is in the North Eastern part of the Magadan Region about 200 kilometres from the town of Seimchan. There is no nearby infrastructure. Rassoshinskaya hosts an epithermal gold deposit named Olcha; nearby satellite deposits have the potential to host a high grade ounce gold resource.