Country Experience: Ukraine

First Dynasty Mines (“FDM”) was invited to consider participation in gold and base metal activities in the Western Ukraine by the Ukrainian State Committee of Geology and Utilisation of Mineral Resources.

The invitation was made in the light of the fact that the Renison Goldfields Consolidated (“RGC”) had surrendered their rights to explore and develop the Muzhievo deposits around July, 1997.  In addition, the State Committee of Geology and the State Committee for Industrial Policy were keen to see the development of mining activities in the region.

Kiev in November

Following a site visit in September 1997, a letter of intent was entered into by the State Committees and FDM which provides FDM with sole rights to assess the project and to make a decision to proceed to a joint venture with the State.  It would also gain the mining and exploration rights to the prospective areas of the Transcarpathian region.  The letter of intent has force and effect up until a deadline of February 28, 1998 and subsequently extendable.

The proposed gold mining operation is located near the village of Muzhievo in the Beregovo district of Ukraine (not far from the infamous Chernoble).  The site is located ten kilometres eastwards from the border with Hungary in the Zakapartia region, south-west of the Carpathian mountains. 

 FDM retained mining engineering consultants John S Dunlop & Associates Pty Ltd (“JSD”) to visit the project area and make an assessment of the likely viability of a gold and base metals operation encompassing both the Muzhievo, Beregovo and surrounding deposits.

The mine entry at Muzhievo                                                            The underground haulage level

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