Ovoca Gold Plc.
Ovoca Gold Plc.: Letter to Shareholders
Ovoca Gold Plc. / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Dear Fellow Shareholder, The past three months have seen Ovoca make tremendous advances in the development of the Goltsovoye silver deposit in the Magadan Oblast in the Far East of Russia. The work carried out over the summer of 2008 has placed our company firmly on the path to becoming an emerging mid-tier mining company, and has formed a solid base for the continuing development of the deposit. I am glad to report that we have now successfully completed the summer construction season at Goltsovoye. The works carried out have proceeded in line with project documentation and the applicable permits, allowing us to complete all of the planned tasks for the season. In total, over 233 thousand cubic metres of hard rock and soil have been shifted as part of the continuing construction work. Although the summer construction season is now over, work at Goltsovoye continues, and will carry on throughout the winter. Our efforts are currently being focused on underground mining operations, for which the necessary mining equipment has now been purchased and delivered. On the administrative side, the 'Development Plan of Mining Operations' has been approved by the Magadan office of Rostekhnadzor (Russian Federal Service for Ecological, Technical and Atomic Supervision). Additionally, a mining allotment has been obtained, and a land allotment has been issued. A mining team has been formed, and is currently carrying out refurbishment work on mine tunnels at the 900 metre horizon. Work is being carried out in accordance with all of the applicable industrial health and safety regulations, under which the site has been entered into the Rostekhnadzor register. The risk has been insured with JSC 'VSK Insurance House'. An agreement to provide mine-rescue services has been entered into with the 'Militarized Minе-Rescue Unit of the North-East' (VGSCh), under which the necessary mine-rescue equipment has been purchased and managers and professionals have been certified by Rostekhnadzor under the industrial safety guidelines. The world financial crisis and the related volatility in the price of precious metals is something we are currently keeping a close eye on. While these factors are beyond our control, the fundamental strength of the Goltsovoye project allows us to confidently continue our work in these turbulent times. Nonetheless, some effects are inevitable, and due to the volatility in the credit markets the finalization of loan agreements is currently taking longer than previously anticipated. This includes our loan agreement, based on the earlier announced non-binding term sheet with a major Russian bank, the signing of the final terms for which has been slightly postponed and is now expected to take place in late November-December 2008. The Kola Peninsula projects are advancing as planned, and we are continuing to build on the advances described in the previous quarterly letter. The Pellapahk copper-molybdenum deposit diamond-drilling programme has been completed, with 5,530 metres drilled. Samples obtained from this tighter grid have now been analysed and are fully in line with previously obtained data. At this time, Ovoca’s and Black Fox Resources’ geologists are engaged in the preparation of the necessary materials for the registration of the discovery of a major copper-molybdenum deposit with the Russian Government Commission for Natural Resources (GKZ). At the same time we are continuing field work at the site: exploratory drilling is being conducted which will allow us to further refine the geological model of the deposit. We hope to announce the results of this work in the next quarterly letter. I want to thank all of you for your continued support of Ovoca Gold plc. Our philosophy of having a focused strategy combined with a streamlined company will continue to pay off, especially in the current volatile market conditions, as we work on bringing Goltsovoye into production and on developing our other projects. Regards, Leonid Skoptsov Chief Executive Officer 21.10.2008 Financial News transmitted by DGAP ----------------------------------------------------------------------
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