Chelyabinsk Zinc Plant OJSC Sets Up a Subsidiary to Develop Amur Field

Chelyabinsk Zinc Plant became founder of Amur GOK OJSC. On Friday, December 7, 2007, Inspection of the Federal Tax Service of Kurchatovsky district of Chelyabinsk registered the new legal entity.

Resolution on setting up the enterprise was adopted by the CZP Board of Directors at their meeting held on November 27, 2007.

In accordance with All-Russian Classifier of Types of Economic Activities, the newly established Amur GOK OJSC is entitled to be engaged in minerals extraction by means of open-cut and underground mining, as well as ore dressing resulting in production of metal concentrates, and their sale. Currently, a Directorate of the new enterprise is being formed.

It should be mentioned again that license agreement for a twenty five years’ period for prospecting and development of Amur Zinc Field in Bredinsk District of Chelyabinsk region was signed by Russia’s Federal Agency for Subsoil Use (Rosnedra) and CZP on January 12, 2007. In 2007, basic geological works were carried out at the field. By the end of the year, 100% of development wells would be drilled.

“The performed works allow us to make optimistic conclusions. Ore body thickness at the field reaches 23.4 m, while zinc content reaches 16.4%. One can say with high extent of certainty that the field deposits are two-three times larger than it was expected according to the results of Soviet studies conducted in 1970-ies”, stated Vsevolod Geikhman, CZP General Director.

The Company expects to get the final results of estimation and prospecting works at the field in 2H2008, upon approval of the figures by the State Commission for Mineral Reserves. In 2H2008, CZP also plans to carry out auditing of mineral resources and ore reserves at Amur field according to the international standards (JORC Code).