/IRBIS, June 18, 04/ - REUTERS informed that one of the largest gold producers in Kazakhstan joint-venture Vasilkovskoe Zoloto increased production of cathode gold in January-May 2004 by 5.7% up to 365.5 kilograms from 245.9.

Total goods production for the five months equaled KZT 619.363 m ($4.5. m).

Metal production in 2003 and 2004:

--------------------------------------------------------
                   May     May  January-May  January-May
                  2004    2003         2004         2003
--------------  ------  ------  -----------  -----------
Cathode gold    85.000  79.384      365.468      345.888
(kilograms)
Cathode silver   4.000   4.011        23.07       19.178
(kilograms)
--------------------------------------------------------

The shareholders of Vasilkovskoe Zoloto JV is State Privatization Committee (40% of shares) and Flodgate Holding B.V. (Netherlands - 60% of shares). Authorized capital - KZT2.0 bn.

In 2003 production totaled 955 kilograms of gold or 3.7% higher than in 2002.

[2004-06-18]