CELTIC Resources announced yesterday that it is to acquire a 50 per cent interest in a silver mine in the Republic of Sakha, in the Russian Federation.

The joint venture will be with the same state-owned company, Sakha Zoloto, with which it has already entered an agreement to develop a major gold deposit at Nezhdaninskoye.

The silver/lead/zinc deposit is at Verkhne Menkeche, just 40 kilometres north of the Nezhdaninskoye gold mine.

The company's accounts for the six months to June 30th of this year show a loss of £45,593. An investment of a further £1.25 million, approximately, will be required to establish initial production at Verkhne Menkeche.