A feasibility study on the underground sulphides project was completed by Wardell Armstrong International (WAI) in September 2005 and a new base case is close to completion which will increase the gold output significantly. The bankable feasibility on the new case will be completed by WAI during the first quarter of 2008.

First gold production is expected from project in the second half of 2009 by deepening the existing Centralny open pit mine to access the sulphidic ores below the current level, while the primary underground access for Severny is being developed. The expanded pit design will incorporate access for the underground declines from the pit bottom, thereby reducing the length of the declines and allowing them to be developed in more solid ground which will reduce support costs.

The existing Phase 1 oxides plant will be modified by the addition of flotation and bio-oxidation sections to treat the sulphide ore. Construction can be undertaken without significantly affecting existing production from the oxide plant due to the modular nature of the plant modifications. Underground mining will be trackless with the ore either being trucked or conveyed to the plant. First gold production from the underground Severny mine is expected in mid 2010.