CELTIC Resources, the small exploration company, has announced a joint venture to develop a gold/deposit in the Russian Federation.

It has agreed to take a 45 per cent interest in a new joint venture company formed to develop the Nezdhnninskoye deposit, which has estimated resources of almost 11 million ounces of gold.

The agreement envisages an initial expenditure of around $5 million (£3.1 million).

Sakha Zoloto, a company owned by the government of Sakha, holds the licence for the despoit.

The licence will be transferred to the new joint venture company, called the Verkhoyansk Mining Company.