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Product description

General information

The base product to be produced and sold within the project is bar gold.

Historically, gold has been one of the most attractive investments. Bar gold is the main product for gold investments, as well as the cornerstone of gold reserves.

In Regulation No. 362-P of the Central Bank of the Russian Federation "On the Procedure for Granting Gold-Secured Loans to Credit Institutions by the Bank of Russia" d.d. November 30, 2010, the following two types of precious metal bars of the Russian origin are specified:

  • standard bars
  • minted bars.

For compliance with the requirements of the London Bullion Market Association and the London Platinum and Palladium Market, the precious metal bars from of the Russian origin, that meet domestic and international standards, shall meet the following parameters:

  • structure with a certain impurity,
  • a certain form,
  • a certain weight.

All precious metal bars bear obligatory marks, as follows:

  • serial number
  • rate
  • letter type of precious metal
  • manufacturer’s label
  • year
  • bar weight in grams or ounces.

The rate mark holds a special position among the aforementioned marks. It is a kind of a quality status. In relation to precious metals - gold, silver, platinum and palladium – the rate mark has two objectives:

  • it is a state label, to guarantee the authenticity of bars or coins currently in circulation
  • it is an indication of precious metal content in the alloy.

Based on the metric system, the rate indicates the amount of grams of precious metal per 1,000 grams of a product. Pure metal there corresponds to the 1,000 rate.

Product properties

Standard gold bars

Standard bars are the bars of precious metals produced and labeled by Russian (till 1992 - Soviet) gold refineries according to the applicable state and industry standards. The weight and rate values of standard gold bars are specified in the following table:

Ingots from precious metals Ligature mass (ingot weight), grams Hallmark
Gold bullions 11,000-13,000 not less - 999.5

Table 4. Properties of standard gold bullions.

According to the international practice, standard precious metal bars of a very high quality, high rate and a brand of respected major refineries, are rated by the London Bullion Market Association (LBMA) and the London Platinum and Palladium Market (LPPM) as “Good Delivery”, which makes such products highly appreciated and allows entering the international market of precious metals. The “Good Delivery” status for precious metal bars has been assigned to the products of the following enterprises within the Russian Federation:

The enterprises which were given the status of Good Delivery Good Delivery on:
standard gold bullions standard silver bullions platinum and palladic ingots
1. Ekaterinburg Non-Ferrous Metals processing plant Assigned Assigned Assigned
2. Novosibirsk refinery Assigned Assigned Assigned
3. Shchoylkovo plant of secondary precious metals Assigned Assigned -
4. Prioksky plant of non-ferrous metals Assigned Assigned Assigned
5. Krasnoyarsk plant of non-ferrous metals Assigned Assigned Assigned
6. Kolyma refinery Assigned - -
7. Uralelectromed - Assigned -

Table 5. Russian enterprises which products have the "Good delivery" status.

Minted gold bars

Minted bars are bars of precious metals produced and labeled by Russian (till 1992 - Soviet) gold refineries according to the current state and industry standards and corporate standards, as well as bars of foreign origin meeting the international quality standards, weight of 1 kg and less and with the content of chemically pure parent precious metal of at least 99.99% of ligature mass of a bar.

Such bars are issued under Order No. 1157 of the Government of the Russian Federation "On Additional Measures for Development of the Precious Metal and Jewel Market in the Russian Federation" d.d. November 25, 1995.

Minted bars are bars of precious metal with a non-standard weight. The values of weight and rates of minted gold bars are shown in the following table:

Minted bars Hallmark The weight (ingot weight) in grams
Gold measured bullions Hightest 999.9 1, 5, 10, 20, 50, 100, 250, 500, 1000

Table 6. Properties of measured gold bullions.

The project envisages production of standard gold bars intended for sell to the state enterprises (The Central Bank of the Russian Federation and Gokhran of Russia*), Russian and foreign commercial banks.

Gokhran of Russia* - Federal state institution "Public Institution on Forming of the State Fund of Precious Metals and Gemstones of the Russian Federation, Storage, Issue and Use of Precious Metals and Gemstones with the Ministry of Finance of the Russian Federation"

Licences and patents

The activity under the project is governed by the state, generally by means of licensing the subsurface use. Such official permits, as well as permits to use other natural resources (forests, plant and animal life), are based on authorizing documents.

Special licences in the sphere of subsurface use are obtained based on the following laws and regulations:

  • The law of the Russian Federation "On Subsurface Resources" d.d. February 21, 1992 No. 2395-I (as amended on 21.02.1992, 26.06.1992, 25.12.1992, 01.07.1994, 03.03.1995, 10.02.1999,02.01.2000, 14.05.2001, 08.08.2001, 29.05.2002, 06.06.2003, 29.06.2004, 22.08.2004, 15.04.2006, 25.10.2006, 26.06.2007, 01.12.2007, 29.04.2008, 14.07.2008, 18.07.2008, 23.07.2008, 30.12.2008, 17.07.2009, 27.12.2009, 19.05.2010, 26.07.2010, 05.04.2011, 18.07.2011, 21.11.2011, 30.11.2011, 06.12.2011, 07.12.2011, 14.06.2012, 28.07.2012, 30.12.2012, 07.05.2013, 23.07.2013, 28.12.2013, 23.06.2014, 21.07.2014, 24.11.2014, 29.12.2014, 31.12.2014, 29.06.2015, 13.07.2015, 05.04.2016, 03.07.2016);
  • "Regulation on the Procedure for Licensing of Natural Resources Use " enacted by Resolution No. 3314-of the Supreme Council of the Russian Federation d.d. July 15, 1992 I (as amended on 26.06.2007, 21.11.2011, 28.12.2013, 05.04.2016);
  • "Regulation on the Federal Service for the Supervision of Natural Resources“ (Rosnedra) approved by the Order of the Government of the Russian Federation No. 400 d.d. July 30, 2004 (as amended on 20.10.2006, 20.12.2006, 24.05.2007, 16.04.2008, 29.05.2008, 04.08.2008, 07.11.2008, 27.01.2009, 08.08.2009, 01.12.2009, 27.01.2010, 28.03.2010, 15.06.2010, 26.07.2010, 13.09.2010, 12.10.2010, 12.11.2010, 24.03.2011, 08.10.2012, 30.04.2013, 05.06.2013, 21.10.2013, 02.11.2013, 27.12.2014, 16.04.2015, 11.11.2015, 25.12.2015, 01.07.2016, 07.07.2016, 11.07.2016);
  • "Regulation on Establishment and Change of Boundaries of Subsoil Plots Allocated for Use" approved by Order of the Government of the Russian Federation No. 429 d.d. May 3, 2012.

The feature and benefit of our project is availability a Subsoil License with Favorit Centre LLC, with the following parameters:

  • Date of assignment of the State Registration Number: September 21, 2006,
  • State registration licence number: ChIT 01747 BE,
  • Name of the authority, which granted the licence: Trans-Baikal territorial administration of the Federal Agency for Subsoil Management (Zabaykalnedra),
  • Purpose of the subsoil use and work types: geological prospecting and extraction of ore gold and associated components,
  • Name and location of the subsoil plot: the Kadara river basin, Trans-Baikal Territory, Mogochinsky district, 50 km to the southeast from Amazar settlement,
  • Allotment type: mining,
  • Licence valid until: August 31, 2031.