On December 2, 2016, Russia’s geological exploration company Rosgeo, also known as Rusgeology, has offered to explore the Sukhoi Log gold deposit further to increase stated reserves before selling the license to the field.

Anton Sergeyev, an aide to Rosgeo’s CEO, reported that the company did not send any proposals on the Sukhoi Log field to the government. Representatives of the Ministry of Natural Resources and the Environment and two of the companies that were interested in the asset – the state industrial corporation Rostec and the gold producer Polyus – declined to comment.

According to the government, Sukhoi Log’s estimated reserves under the B, C1, and C2 categories amount to 1,953 tons of gold and 1,541 tons of silver, while off-balance gold resources stand at 799 tons. The Natural Resources and Environment Minister Sergei Donskoi has said earlier that the Sukhoi Log, one of the largest undeveloped fields, was unlikely to be auctioned in 2016.

Sources reported that larger reserves would allow the government to sell it at a price exceeding the initial payment of RUB8.55 billion (USD140 million). If additional exploration is done, Rosgeo may take on field development on its own or in association with partners.

Two sources said that the company’s proposal was a reason to delay the auction, but a source close to the office of a Deputy Prime Minister said that the company did not file written requests.