This project  has received State approval for the Russian equivalent of a prefeasibility study, including the environmental approvals, for the development of an underground, high-grade gold mine with a 12-year life of mine.

Other target assets to be potentially acquired include a quartet of exploration projects. Petropavlovsk  Group is the third largest gold producer in Russia. It also has a number of precious metals and iron ore assets at various stages of development in a number of regions across the Russian Federation.

Meridian MD Jeremy Read said on Friday that the opportunity to buy a 75% interest in Omchak offered tremendous potential for Meridian, as it would give the company access to a high-grade gold deposit, with an approved mine plan and a clear path to production within the next 18 months.

“The Aliya gold project gives Meridian the opportunity to work in a highly gold mineralised part of eastern Russia in conjunction with Petropavlovsk, which already has an established operational track record in Russia,” said Read.

Currently, over 400 drill holes have been completed at the Aliya project, and from this data, an exploration target of between 700 000 oz and 1,1-million ounces at a grade of between 6,5 g/t and 10 g/t has been estimated.

Read said that Meridian would aim to convert this exploration target into a Joint Ore Reserves Committee-compliant inferred, indicated and measured resources, following the completion of its due diligence work programme.

“Meridian will move quickly to complete the due diligence on Omchak and assuming the due diligence is positive, and all other conditions can be satisfied, complete the acquisition of the 75% interest in Omchak and then move to start development of the project within an 18 month timeframe,” he added.