The Chukotka government, on the sidelines of the Eastern Economic Forum (EEF), signed an agreement with SIBGEO LLC on the development of the large Tumannoye gold deposit, the press service of the Chukotka Autonomous Okrug Governor’s Office and the Chukotka Autonomous Okrug Government reported on September 4.
The company will implement the Tumannoe deposit development project in four stages. In 2024, prospecting and geological exploration assessment and gold reserve recording will begin. Exploration and pilot work will be carried out from 2026 to 2028. The last stage will involve the design and construction of an extraction and processing plant that will be operational in 2030.
LLC “SIBGEO” is a junior company. The Group’s portfolio includes projects involving more than 10 deposits and fields of precious, non-ferrous and rare metals.
Let us remember that a junior company is a small or medium-sized company whose main business is geological exploration.
Junior companies raise money for administrative expenses (maintenance of listings, leave payments and salaries to key personnel) as well as for geological exploration itself, on the stock exchange, and at the expense of shareholders.
The main objective of a junior company is to find a large deposit, determine its resources and, if necessary, reserves, and then sell it (usually together with the company that owns the license) to a larger player.
Junior companies are considered the riskiest, but potentially the most profitable.
Source: Rossa Primavera
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