UPDATE 1-Ovoca secures $92.7 mln loan for Russia silver mine

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MOSCOW, July 29 (Reuters) - Irish-registered miner Ovoca Gold (OVG.L) said on Tuesday it had secured a $92.7 million loan from a large Russian bank to fund development of a large silver mine in the Russian far east, where inflation has raised costs. Ovoca said in a statement the project loan would be used to finance construction and commissioning of the Goltsovoye silver mine, where pre-production capital costs have risen 15 percent due to inflation since the completion of a feasibility study.

"I am glad that, despite the turbulent financial and adverse credit markets, the Goltsovoye project has continued to attract significant interest from a number of banks," Ovoca Chief Executive Leonid Skoptsov said in the statement.

Ovoca did not reveal the name of the bank that supplied the loan.

Ovoca, listed in London and Dublin, said the Goltsovoye deposit in Magadan region would produce an average 260,000 tonnes of ore and 5.8 million ounces of silver annually over the six-year mine life of the project's first stage.

"The mine life is expected to be considerably longer than the six years," the company said in the statement.

Silver resources in two ore zones surveyed by independent firm Wardell Armstrong in early 2007 were 69 million ounces to internationally recognised Joint Ore Reserves Committee (JORC) standards.

In addition to Goltsovoye, Ovoca has several projects on Russia's northwestern Kola peninsula, including the Pellapahk copper and molybdenum project. (Reporting by Robin Paxton; editing by Sue Thomas)