Brief characteristic of the deposit area

The deposit area is located in the northwest part of the Republic of Sakha (Yakutia). From the administrative point of view the project area belongs to the Olenekskiy ulus. The job site of Khara-Mas production section is located northward to the administrative centre of the ulus, the settlement of Olenek. The settlement of Saskylakh, the administrative centre of Anabarskiy ulus is closer to the project site. In the settlement there is a third-class year-round airport intended to receive An-24, An-26 and smaller aircraft. The nearest inhabited locality to the deposit is the settlement of Ebelyakh, the base of Anabarskiy Ore-Dressing and Processing Enterprise located on the right bank of the Anabar river (in the estuary of the Ebelyakh river), 70 km to the northwest from the Talakhtakh river. There is a platform suitable for reception of helicopters and An-2 type airplanes. There is a first-aid post, a post office, a long-distance call office, a canteen at the placer mine.
There are no year-round roads in the region. The Anabar river in high-water periods is passable for small river vessels.
The territory of the region is a low plateau. Absolute marks seldom exceed 200 m, on the average varying within 140-180 m. In the vicinity of valleys of large rivers the terrain is deeply broken, the slopes of valleys are abrupt and often very steep. Watershed relative height with respect to valley floors reaches 140 m.

The river network around the project area is represented by the Anabar river and its tributaries - the B.Kuonapka, the Ebelyakh, the Billyakh, the Mayat, the Khara-Mas rivers and others. One of large right tributaries of the B.Kuonapka river is the Talakhtakh river.
The Khara-Mas river runs into the Anabar river 41.5 km downstream of the estuary of the Ebelyakh river. The length of the Khara-Mas river valley is 26 km. The bed of the Khara-Mas river is winding with a width of 2 to 25 m. Water depth at reaches is 2.0-3.0 m, at natural bars it does not exceed 0.1-0.5 m. The river has three large tributaries: streams Uryung-Yuryakh, Otordur and Ottuktakh. The longitudinal profile of the Khara-Mas river is characterised by an irregular slope.
The climate of the region is sharply continental with a long (7-8 months) severe winter and a short (2-2,5 months) summer. The average monthly temperature of the coldest months (December, January) is -30 to -35°C, the average monthly temperature of the warmest months (July, August) is +11°C. Maximum summer temperature is +35°C, minimum winter temperature is -70,5°C. The period of positive temperatures is usually 90 to 100 days.

From the point of view of the type of vegetation the region is referred to the forest-tundra zone. The forests located on the slopes of watersheds are mainly composed of Dahurian larch. The underwood includes bushy birch, alder, osier-bed, Labrador tea, blueberry. The moss cover is present almost everywhere. Watershed spaces are heavily waterlogged. Grassy vegetation is developed only in overflow lands, on lakeshores and partially at watersheds. The soil cover is poorly developed.
Aboriginals - Yakuts and Evenkis. Due to carrying out prospecting and mining operations Russian, Ukrainians, etc. make up a considerable share of population. The indigenous population is small, and is engaged in reindeer breeding, fur farming, hunting of fur animals, fishery. Due to a sharp decline of the farming industry Olenekskiy ulus has a certain reserve of man power.
For building purposes imported materials are used at the project site, since there is virtually no building timber in the region. There are no power transmission lines in the region.

Company structure and background

OOO KDM Olenek, established in 2003, incorporates a management office with a material and technical supply base in Yakutsk, a prospecting subsection Talatah, a prospecting subsection Khara-Mas and an operational subsection Khara-Mas. The Khara-Mas subsection consists of a mining unit, a preparation plant, a power shop, mechanical-repair workshops, a garage, a warehouse of petroleum products, material and technical supply warehouses, a shift camp, and a helicopter landing site.