Reserves and Resources update as at 1 January 2016

RNS Number : 1479T
Polymetal International PLC
24 March 2016
 

Release time

IMMEDIATE

Date

24 March 2016

 

 

Polymetal International plc

Ore Reserves, Mineral Resources and Exploration update as at 1 January 2016

 

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to provide an Exploration update for the year ended 31 December 2015 and an update of its Ore Reserves and Mineral Resources as at 1 January 2016 in accordance with the JORC Code (2012).

HIGHLIGHTS

·      In 2015 Polymetal's gold and silver Ore Reserves decreased by 4% to 21 Moz of gold equivalent (GE) due to unfavourable movement in the gold/silver ratio. However, depletion from mining was fully offset by reserve additions, most importantly by resource-to-reserve conversion at Kyzyl and fresh discoveries at Dukat hub and the Omolon hub;

·      Mineral Resources (additional to Ore Reserves) decreased by 12% to 12.8 Moz of GE as material new additions at Dukat hub, Albazino, and Omolon hub did not to fully compensate for resource-to-reserve conversion at Kyzyl and resource attrition during re-evaluation at Voro hub;

·      Average Ore Reserves grade decreased by 3% to 4.2 g/t GE. Average Mineral Resources grade increased by 15% to 4.8 g/t GE as a result of initial estimates at several high-grade resource properties;

·      We continue to use conservative gold and silver price assumptions, of $1,100/oz and $15/oz respectively, in both reserve and resource estimates in 2015 (2014: US$1,200/oz and US$17/oz);

·      Drilling volumes decreased by 14% year-on-year to 232 km, mainly as a result of completion of major drilling campaigns at Tarutin, Viksha and Albazino underground in 2014, while additional drilling volumes were allocated to the new deposits, including Lichkvaz, Dolinnoye, and Kyzyl.

"I am very happy that our key mines - Dukat, Omolon, and Albazino - all managed to largely replace mineral inventory ounces through exploration in 2015," - said Vitaly Nesis, Group CEO of Polymetal, commenting on the results. "We look forward to 2016 when we expect that continued spending on brownfield exploration will yield more high-quality reserves".

Ore Reserves and Mineral Resources summary(1)

 

1 January 2016

1 January 2015

Change(2)

 

 

 

 

Ore Reserves (Proved + Probable), gold equivalent Moz

20.8

21.6

-4%

Gold, Moz

17.7

17.8

-1%

Silver, Moz

207.2

210.7

-2%

Copper, Kt

85.4

79.8

7%

 

 

 

 

Mineral Resources (Measured + Indicated + Inferred), gold equivalent Moz

12.8

14.6

-12%

Gold, Moz

11.3

12.6

-10%

Silver, Moz

48.6

50.3

-3%

Copper, Kt

132.0

152.6

-13%

1)         Mineral Resources and Ore Reserves are reported in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves.

2)         Differences are due to rounding.

 

Ore Reserves and Mineral Resources by metal, 1 January 2016

 

Ore Reserves

Mineral Resources

 

 

 

Gold

85%

88%

Silver

13%

7%

Copper

2%

5%

Total

100%

100%

 

 

Ore Reserves reconciliation, gold equivalent, Moz

 

Ore Reserves, 01.01.2015

Gold/silver price ratio change

Depletion

Revaluation

Initial reserve estimates

Ore Reserves, 01.01.2016

21.6

-0.8

-1.5

20.8

Mineral Resources and Ore Reserves as at 1 January 2016(1) 

 

Tonnage

Grade

Content

 

Mt

GE, g/t

GE, Moz

Mineral Resources

 

 

 

 

Measured

7.0

2.6

0.6

Indicated

28.2

3.1

2.8

Measured + Indicated

35.2

3.0

3.4

Inferred

48.0

6.1

9.4

Measured + Indicated + Inferred

83.2

4.8

12.8

 

 

 

 

 

 

Ore Reserves

 

 

 

 

 

Proved

54.5

3.4

6.0

Probable

100.3

4.6

14.8

Proved + Probable

154.7

4.2

20.8
                   

 

1)         Mineral Resources and Ore Reserves are reported in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Discrepancies in calculations are due to rounding.

 

Exploration areas and volumes (mine site exploration excluded)

 

Drilling, km

 

2015

2014(1)

Brownfield

 

 

Voro

15.2

12.8

North Kaluga

5.2

5.2

Voro flanks

3.1

-

Tamunier

6.9

7.6

 

 

 

Varvara

37.6

36.1

Varvara

32.3

3.3

Tarutin

5.5

32.9

 

Dukat hub

 

38.9

 

46.0

    Dukat flanks

19.6

29.9

    Primorskoye

5.0

-

    Perevalnoye

10.0

-

Olcha

0.7

11.5

Other

3.6

4.6

 

 

 

Albazino

16.0

75.5

 

Okhotsk hub

11.9

17.7

Ozerny

-

8.3

Khotorchan/Gyrbykan

2.8

-

Svetloye

3.6

6.1

Other

5.5

3.3

 

 

 

Omolon hub

15.6

17.2

Burgali

1.6

6.2

Yolochka

4.7

-

Irbychan

5.7

-

Other

3.6

11.0

 

 

 

Kyzyl project

45.6

16.8

Bakyrchik

36.1

16.8

   Bolshevik

9.5

-

 

 

 

Subtotal

180.8

222.1

 

 

 

Greenfield

 

 

Urals

10.6

16.7

Maminskoye

-

5.4

Svetlobor (PGM)

2.4

3.6

Urals regional

8.2

7.7

Far East

 

-

 

5.4

Kutyn

-

5.4

 

 

 

North-West

-

24.6

Karelian PGM

-

18.7

Elmus

-

5.9

 

 

 

Kazakhstan

 

 

    Dolinnoye

24.3

-

 

 

 

Armenia

 

 

    Lichkvaz

15.8

-

 

 

 

Subtotal

50.7

46.7

Total

231.5

268.8

1)         Restated data.

EXPLORATION RESULTS

Dukat hub

·      Step-out drilling at Dukat around active mining areas concentrated mostly on down-dip and strike extensions of known veins. The most significant incremental results have been received at Khrustalny group of veins in the Northern part of the deposit where ore-bearing strata are overlain by sedimentary rocks. Several new non-outcropping veins have been delineated with the average grade of 9.3 g/t GE over average thickness of 1.9 m for the ore reserves of 181 koz of GE. In 2016 there will be additional drilling aimed at discovering other blind veins in similar geological position.

·      Step-out drilling at Lunnoye have more than compensated for mining dilution as new the main ore-bearing structure at Zone 9 has been traced 100 m beyond previously known limits of mineralization along strike with incremental resource of 172 koz of GE at the average grade of 12.1 g/t GE with the average thickness of 1.6 m. The structure remains open along strike and down dip and will be traced by additional drilling in 2016.

·      Initial drilling at the Primorskoye property (250 km from the Omsukchan concentrator) acquired in 2015 delineated a high-grade quartz vein with the average grade of 23 g/t GE (top-cut at 207.0 g/t GE) and the average width of 3m for the total of 368 koz of GE. The vein remains open in several directions with only 600 m of the overall 2.5 km traceable strike length included in the resource estimate. Further in-fill and step-out drilling as well as detailed metallurgical and geomechanical studies are planned for 2016 with the objective to produce initial reserve estimate for the property in Q1 2017.

·      A small initial reserve of 67 koz of GE at 5.9 g/t GE was estimated at Perevalnoye deposit (47 km from the Omsukchan concentrator). Relatively low resource-to-reserve conversion ratio is driven by the difficult geometry of ore bodies due to intense folding. The property will be explored by underground drifting to improve the certainty of and expand the reserve estimate prior to the investment decision.

Omolon hub

·      Down-plunge step-out drilling at Tsokol Kubaka (2 km from the Kubaka mill) extended the strike length of the vein by 200 m adding 92 koz of GE ore reserves at 6.4 g/t GE and the average width of 2.5 m. Further drilling down-plunge will be conducted in 2017, as underground development will approach the area further down-plunge from the boundary of the current estimate.

·      Initial drilling at Central vein at Irbychan (166 km from the Kubaka mill) yielded initial resource estimate of 98 koz GE at 12.0 g/t GE and average width of 3.7 m. In 2016 we plan to upgrade the resource at the Central and continue drilling at Northern and Eastern veins to enlarge the resource and pave the way for the initial reserve estimate in 1H2017 and the start of open-pit mining in 2H 2017.

·      Initial resource estimate of 102 koz of GE at 16.5 g/t GE at Nevenrekan (242 km from the Kubaka mill) was based on the 2014 drilling campaign and demonstrated high variability of grades and thicknesses within the vein swarms. An in-fill drilling campaign is planned for 2016 to improve geological interpretation of the property and attempt reserve estimate.

·      Initial resource estimate of 86 koz GE at 11.2 g/t GE at Yolochka (90 km from the Kubaka mill) was based on limited drilling on near-surface flat-dipping portions of previously trenched veins. Further drilling is planned for 2016 to upgrade the resource.

·      Increased reserve estimate of 123 koz GE at 7.2 g/t GE at Burgali placed this property in line for open-pit mining in 2018 followed by a small-scale underground operation in 2019. No follow-up exploration is planned for 2016.

Okhotsk hub

·      Drilling at the Khotorchan and Gyrbykan veins (180 km from the Khakanja mill) traced narrow (1-2 m) high grade (10-30 g/t GE) veins for the strike of 400 and 300 m respectively. Additional drilling in 2016 is expected to improve the understanding of veins' geometry and lead to the initial resource estimate. Both veins are expected to enter production in 2017 and complement mill feed at Khakanja in 2018. 

·      First drill holes completed at Levoberezhny (35 km from the Svetloye heap leach facility under construction) demonstrated promising results with wide (tens of meres) mineralized structures with average grades of 1.5-2.5 g/t gold. Metallurgical tests on the material and further drilling are under way with significant probability for the initial resource estimate in 2016.

Albazino

·      New ore zone, Farida, was discovered 12 km from the concentrator with the initial estimate of the open-pittable resource of 181 koz of gold at 5.5 g/t. Drilling in 2016 will concentrate on Farida mineralization suitable for underground mining.

Voro hub

·      Additional drilling at Tamunier led to a significant geological re-interpretation of the property with a more than two fold reduction in resources to 626 koz of GE accompanied by a more than twofold increase in the resource grade to 4.1 g/t GE. Additional drilling at the property in 2016 is expected to improve confidence in the continuity of mineralization along strike and pave the way for the reserve estimate in 1H 2017. 

Kyzyl

·      At Bakyrchik, drill testing of several targets near the main deposit (one of the ongoing conditions of the subsoil contract) failed to deliver additional resources while in-fill drilling and the completion of open-pit design saw a significant conversion of resources to reserves

·      At Bolshevik, in-fill and step-out drilling yielded positive results which are expected to be translated in the initial resource estimate in 2016.

PGM

·      At the Viksha PGM project in Karelia efforts concentrated on the conversion of the exploration license into the mining license in accordance with the Russian regulation. Initial resource estimate is expected in Q4 2016. Svetlobor PGM project in the Urals remained stranded due to the lengthy process of obtaining the necessary deforestation permits. 

Ore Reserves as at 1 January 2016(1)

 

Tonnage

Grade

Content

 

 

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

 

Proved

 

 

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

 

Albazino (2)

6,070

5.3

-

-

5.3

1,027

-

-

1,027

 

Mayskoye

3,280

8.8

-

-

8.8

927

-

-

927

 

 

 

 

 

 

 

 

 

 

 

 

Dukat hub

7,060

 

 

 

5.1

210

74,817

-

1,150

 

Dukat (3)

5,220

0.6

323

-

4.5

102

54,206

-

763

 

Lunnoye

1,230

1.7

317

-

6.0

69

12,532

-

238

 

Goltsovoye

250

-

563

-

7.7

-

4,443

-

61

 

Arylakh

260

0.8

427

-

6.6

7

3,570

-

55

 

Olcha

100

10.4

22

-

10.7

32

67

-

32

 

 

 

 

 

 

 

 

 

 

 

 

Varvara hub

5,130

 

 

 

0.9

124

-

4.2

152

 

Varvara (5)

5,130

0.8

-

0.41

0.9

124

-

4.2

152

 

 

 

 

 

 

 

 

 

 

 

 

Omolon hub

10,280

 

 

 

2.7

756

12,142

-

891

 

Birkachan

5,110

1.8

6

-

1.8

293

907

-

302

 

Sopka Kvartsevaya (7)

2,330

1.1

54

-

1.7

86

4,060

-

125

 

Oroch

750

4.3

196

-

7.0

104

4,735

-

169

 

Dalneye (8)

1,430

2.6

43

-

3.0

119

1,947

-

137

 

Tsokol Kubaka

280

6.6

13

-

6.7

59

117

-

60

 

Burgali

380

7.9

31

-

8.2

95

375

-

98

 

 

 

 

 

 

 

 

 

 

 

 

Voro hub

11,130

 

 

 

2.3

813

1,120

-

823

 

Voro (9)

11,130

2.3

3

-

2.3

813

1,120

-

823

 

 

 

 

 

 

 

 

 

 

 

 

Okhotsk hub

4,930

 

 

 

3.5

509

4,327

-

550

 

Svetloye

3,360

3.2

4

-

3.2

349

463

-

350

 

Avlayakan

160

16.1

196

-

18.5

85

1,033

-

98

 

Ozerny

550

2.7

28

-

3.0

48

498

-

53

 

Khakanja (11)

860

1.0

84

-

1.7

27

2,334

-

49

 

 

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

 

Maminskoye (13)

4,810

1.9

-

-

1.9

295

-

-

295

 

Veduga (14)

180

3.2

-

-

3.2

18

-

-

18

 

Kutyn (15)

1,580

3.3

-

-

3.3

169

-

-

169

 

Total Proved

54,450

 

 

 

3.4

4,847

92,407

4.2

6,003

 

 

Probable

 

 

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

 

Albazino (2)

8,600

5.0

-

-

5.0

1,390

-

-

1,390

 

Mayskoye

2,590

8.0

-

-

8.0

662

-

-

662

 

 

 

 

 

 

 

 

 

 

 

Dukat hub

8,930

 

 

 

6.0

306

111,266

-

1,729

Dukat (3)

5,750

0.8

407

-

5.8

150

75,279

-

1,085

Lunnoye

2,000

1.2

338

-

5.8

80

21,783

-

375

Goltsovoye

380

-

469

-

6.4

-

5,773

-

79

Arylakh

270

0.8

399

-

6.2

7

3,461

-

53
                                       

 

 

 

Tonnage

Grade

Content

 

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

Olcha

180

11.3

18

-

11.6

69

112

-

70

Perevalnoye (4)

350

-

428

-

5.9

-

4,860

-

67

 

 

 

 

 

 

 

 

 

 

Varvara hub

31,110

 

 

 

1.4

937

180

62.3

1,354

Varvara (5)

30,670

0.9

-

0.43

1.3

935

-

55.2

1,308

Tarutin (6)

440

0.1

13

1.62

3.3

1

180

7.2

47

 

 

 

 

 

 

 

 

 

 

Omolon hub

1,840

 

 

 

8.6

490

1,552

-

507

Birkachan

1,180

8.6

30

-

8.9

325

1,151

-

338

Sopka Kvartsevaya (7)

-

-

-

-

-

-

-

-

-

Oroch

10

5.0

244

-

8.4

2

79

-

3

Dalneye (8)

-

-

-

-

-

-

-

-

-

Tsokol Kubaka

490

8.8

11

-

9.0

139

178

-

141

Burgali

160

4.7

28

-

5.0

24

144

-

25

 

 

 

 

 

 

 

 

 

 

Voro hub

370

 

 

 

14.6

73

1,065

18.9

174

Voro (9)

50

2.0

7

-

2.1

3

9

-

3

North Kaluga (10)

320

6.7

101

5.81

16.4

70

1,056

18.9

171

 

 

 

 

 

 

 

 

 

 

Okhotsk hub

2,210

 

 

 

4.0

278

703

-

285

Svetloye

2,110

3.2

3

-

3.2

217

182

-

218

Avlayakan

100

18.9

162

-

20.9

61

521

-

67

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

Kyzyl project (Bakyrchik) (12)

29,150

7.7

-

-

7.7

7,254

-

-

7,254

Maminskoye (13)

9,890

1.9

-

-

1.9

618

-

-

618

Veduga (14)

3,500

5.1

-

-

5.1

579

-

-

579

Kutyn (15)

2,070

3.3

-

-

3.3

217

-

-

217

Total Probable

100,260

 

 

 

4.6

12,804

114,766

81.2

14,770

 

 

 

 

 

 

 

 

 

 

Proved + Probable

 

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

Albazino (2)

14,670

5.1

-

-

5.1

2,417

-

-

2,417

Mayskoye

5,870

8.4

-

-

8.4

1,589

-

-

1,589

 

 

 

 

 

 

 

 

 

 

Dukat hub

15,990

 

 

 

5.6

515

186,084

-

2,879

Dukat (3)

10,970

0.7

367

-

5.2

252

129,485

-

1,849

Lunnoye

3,230

1.4

330

-

5.9

149

34,315

-

613

Goltsovoye

630

-

506

-

6.9

-

10,216

-

140

Arylakh

530

0.8

413

-

6.4

14

7,031

-

109

Olcha

280

11.0

20

-

11.3

100

178

-

103

Perevalnoye (4)

350

-

428

-

5.9

-

4,860

-

67

 

 

 

 

 

 

 

 

 

 

Varvara hub

36,240

 

 

 

1.3

1,061

180

66.5

1,507

Varvara (5)

35,800

0.9

-

0.43

1.3

1,060

-

59.3

1,460

Tarutin (6)

440

0.1

13

1.62

3.3

1

180

7.2

47
                                                 
 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage

Grade

Content

 

 

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

 

Omolon hub

12,120

 

 

 

3.6

1,245

13,694

-

1,398

 

Birkachan

6,290

3.1

10

-

3.2

618

2,058

-

640

 

Sopka Kvartsevaya (7)

2,330

1.1

54

-

1.7

86

4,060

-

125

 

Oroch

760

4.3

197

-

7.0

106

4,815

-

172

 

Dalneye (8)

1,430

2.6

43

-

3.0

119

1,947

-

137

 

Tsokol Kubaka

770

8.0

12

-

8.2

198

296

-

201

 

Burgali

540

7.0

30

-

7.2

119

519

-

123

 

 

 

 

 

 

 

 

 

 

 

 

Voro hub

11,500

 

 

 

2.7

886

2,186

18.9

997

 

Voro (9)

11,180

2.3

3

-

2.3

815

1,130

-

826

 

North Kaluga (10)

320

6.7

101

5.81

16.4

70

1,056

18.9

171

 

 

 

 

 

 

 

 

 

 

 

 

Okhotsk hub

7,140

 

 

 

3.6

787

5,030

-

835

 

Svetloye

5,470

3.2

4

-

3.2

567

644

-

568

 

Avlayakan

260

17.2

183

-

19.4

146

1,554

-

165

 

Ozerny

550

2.7

28

-

3.0

48

498

-

53

 

Khakanja (11)

860

1.0

84

-

1.7

27

2,334

-

49

 

 

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

 

Kyzyl project (Bakyrchik) (12)

29,150

7.7

-

-

7.7

7,254

-

-

7,254

 

Maminskoye (13)

14,700

1.9

-

-

1.9

913

-

-

913

 

Veduga (14)

3,680

5.0

-

-

5.0

597

-

-

597

 

Kutyn (15)

3,650

3.3

-

-

3.3

386

-

-

386

 

Total Proved + Probable

154,710

 

 

 

4.2

17,651

207,173

85.4

20,773

 

 

1)         Ore Reserves are reported in accordance with the JORC Code (2012). Discrepancies in calculations are due to rounding.

2)         Including Anfisa, Olga/Nadezhda, Ekaterina-1 and Ekaterina-2. Open-pit Ore Reserves revised as at 01.01.2016. Underground Ore Reserves estimate prepared by Polymetal as at 01.01.2015. Price: Au=1,200 $/oz. Revised estimate for underground was not performed due to lack of material changes.

3)         Including Khrustalny zone, with initial estimate prepared by Polymetal as at 01.01.2016.

4)         Initial estimate prepared by Polymetal as at 01.01.2016.

5)         Cu grade only represents average grade of Float feed. Ore Reserves of Float feed: 1.0 Mt Proved and 12.8 Mt Probable.

6)         Initial estimate prepared by Polymetal as at 01.01.2016. Ore Reserves are presented in accordance with the Company's ownership equal to 50%.

7)         Stockpiled Ore Reserves.

8)         Stockpiled Ore Reserves.

9)         Including Voro South.

10)       Initial estimate prepared by Polymetal as at 01.07.2014. Price: Au=1,300 $/oz, Ag = 20 $/oz, Cu = 7,000 $/t. Revised estimate was not performed due to lack of material changes.

11)       Stockpiled Ore Reserves.

12)       Estimate prepared by RPA Inc. as at 01.01.2015. Price: Au = 1,200 $/oz. Revised estimate was not performed due to lack of material changes.

13)       Estimate prepared by Polymetal as at  01.01.2014. Price: Au = 1,300 $/oz. Revised estimate was not performed due to lack of material changes.

14)       Initial estimate prepared by Snowden as at 01.01.2014. Price: Au= 1,300 $/oz. Revised estimate prepared by Polymetal as at 01.01.2016 (only stoping without Au price change). Ore Reserves are presented in accordance with the Company's ownership equal to 42.65%.

15)       Initial estimate prepared by Snowden as at 01.01.2015. Price: Au= 1,300 $/oz (only Ore Reserves estimate for Heap Leach). Revised estimate was not performed due to lack of material changes.

 

Mineral Resources as at 1 January 2016(1)

 

 

Tonnage 

Grade

Content

 

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

Measured

 

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

Albazino (2)

30

3.7

-

-

3.7

4

-

-

4

Mayskoye

660

8.9

-

-

8.9

188

-

-

188

 

 

 

 

 

 

 

 

 

 

Varvara hub

4,570

 

 

 

1.7

120

-

19.6

252

Varvara (6)

4,570

0.8

-

0.44

1.7

120

-

19.6

252

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

Maminskoye (14)

980

1.4

-

-

1.4

44

-

-

44

Kutyn (16)

740

4.1

-

-

4.1

97

-

-

97

Total Measured

6,980

 

 

 

2.6

453

-

19.6

585

 

 

 

 

 

 

 

 

 

 

Indicated

 

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

Albazino (2)

570

5.4

-

-

5.4

97

-

-

97

Mayskoye

1,090

8.7

-

-

8.7

306

-

-

306

 

 

 

 

 

 

 

 

 

 

Dukat hub

330

 

 

 

20.2

39

12,951

-

216

Primorskoye (5)

330

3.6

1,208

-

20.2

39

12,951

-

216

 

 

 

 

 

 

 

 

 

 

Varvara hub

19,080

 

 

 

1.8

626

60

66.8

1,075

Varvara (6)

18,770

1.0

-

0.58

1.7

625

-

63.0

1,050

Tarutin (7)

310

0.1

6

1.25

2.5

1

60

3.8

25

 

 

 

 

 

 

 

 

 

 

Omolon hub

310

 

 

 

12.1

84

3,242

-

121

Irbychan (8)

240

8.9

189

-

11.3

68

1,439

-

86

Nevenrekan (10)

70

7.1

784

-

15.1

16

1,803

-

35

 

 

 

 

 

 

 

 

 

 

Voro hub

870

 

 

 

4.8

130

655

-

133

Tamunier (11)

870

4.6

23

-

4.8

130

655

-

133

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

Kyzyl project (Bakyrchik) (13)

2,740

6.2

-

-

6.2

545

-

-

545

Maminskoye (14)

1,150

1.5

-

-

1.5

55

-

-

55

Kutyn (16)

2,070

4.2

-

-

4.2

279

-

-

279

Total Indicated

28,210

 

 

 

3.1

2,161

16,908

66.8

2,827

 

 

 

 

 

 

 

 

 

 

Measured + Indicated

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

Albazino (2)

600

5.3

 -  

-

5.3

102

 -  

-

102

Mayskoye

1,750

8.8

 -  

-

8.8

493

 -  

-

493

 

 

 

 

 

 

 

 

 

 

Dukat hub

330

 

 

 

20.2

 39  

 12,951  

-

216

Primorskoye (5)

330

 3.6  

 1,208  

 -

20.2

 39 

 12,951  

-

216
                       
 

 

 

 

 

 

 

 

 

 

 

 

 

Tonnage

Grade

Content

 

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

Varvara hub

23,650

 

 

 

1.7

746

60

86.4

1,327

Varvara (6)

23,340

1.0

-  

 0.54

1.7

745

 -  

82.6

1,303

Tarutin (7)

310

0.1

6

1.25

2.5

1

60

3.8

25

 

 

 

 

 

 

 

 

 

 

Omolon hub

310

 

 

 

12.1

84

 3,242  

 

121

Irbychan (8)

240

8.9

 189  

-

11.3

68

 1,439  

-

86

Nevenrekan (10)

70

7.1

 784  

-

15.1

16

 1,803  

-

35

 

 

 

 

 

 

 

 

 

 

Voro hub

870

 

 

 

4.8

130

 655  

-

133

Tamunier (11)

870

4.6

 23  

-

4.8

130

 655  

-

133

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

Kyzyl project (Bakyrchyk) (13)

2,740

6.2

 -  

-

6.2

545

 -  

-

545

Maminskoye (14)

2,130

1.4

 -  

-

1.4

99

 -  

-

99

Kutyn (16)

2,810

4.2

 -  

-

4.2

376

 -  

 -

376

Total Measured + Indicated

35,190

 

 

 

3.0

2,614

16,908

86.4

3,412

 

 

 

 

 

 

 

 

 

 

Inferred

 

 

 

 

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

Albazino (2)

5,420

5.4

 -  

-

5.4

942

 -  

-

942

Mayskoye

10,990

10.1

 -  

-

10.1

3,569

 -  

-

3,569

 

 

 

 

 

 

 

 

 

 

Dukat hub

980

 

 

 

13.7

99

24,347

-

430

Dukat (3)

40

1.2

822

-

12.4

1

936

-

14

Lunnoye

240

2.2

 651  

-

11.0

17

 4,994  

-

84

Goltsovoye

250

-

 872  

-

12.0

 -  

 7,098  

-

97

Arylakh

150

0.9

 502  

-

7.7

4

 2,423  

-

37

Olcha

120

9.6

 37  

-

10.1

38

 146  

-

40

Perevalnoye (4)

20

-

 564  

 -

7.7

 -  

 379  

-

5

Primorskoye (5)

160

7.2

 1,597  

 -

29.1

 38  

 8,370

 -

152

 

 

 

 

 

 

 

 

 

 

Varvara hub

11,840

 

 

 

1.9

428

84

45.7

735

Varvara (6)

11,610

1.1

-

0.56

1.9

428

-

41.7

709

Tarutin (7)

230

0.1

11

1.71

3.5

1

84

3.9

26

 

 

 

 

 

 

 

 

 

 

Omolon hub

610

 

 

 

13.4

192

6,134

-

264

Oroch

130

7.5

608

-

15.9

31

2,517

-

66

Tsokol Kubaka

50

7.0

14

-

7.1

11

22

-

11

Burgali

50

11.9

15

-

12.0

21

26

-

21

Irbychan (8)

20

19.3

 265  

-

22.6

10

 141  

-

12

Yolochka (9)

240

11.1

10

-

11.2

85

73

-

86

Nevenrekan (10)

120

8.6

 861  

-

17.3

33

 3,355  

-

68

 

 

 

 

 

 

 

 

 

 

Voro hub

3,880

 

 

 

3.9

488

1,041

-

493

Tamunier (11)

3,880

3.9

 8  

-

3.9

488

1,041  

-

493

 

 

 

 

 

 

 

 

 

 

Okhotsk hub

162

 

 

 

7.7

39

108

-

40

Avlayakan

20

17.8

137

-

19.5

9

69

-

10

Kirankan (12)

142

6.5

8

-

6.7

30

39

-

30

 

 

 

Tonnage

Grade

Content

 

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

Development and exploration projects

 

 

 

 

 

 

 

 

 

Kyzyl project (Bakyrchik) (13)

11,420

7.0

 -  

-

7.0

2,562

 -  

-

2,562

Veduga (15)

580

4.1

 -  

-

4.1

77

 -  

-

77

Kutyn (16)

2,110

4.0

 -  

-

4.0

273

 -  

-

273

Total Inferred

47,992

 

 

 

6.1

8,669

31,713

45.7

9,385

 

 

 

 

 

 

 

 

 

 

Measured + Indicated + Inferred

 

 

 

 

 

Standalone Mines

 

 

 

 

 

 

 

 

 

Albazino (2)

6,020

5.4

 -  

-

5.4

1,044

 -  

-

1,044

Mayskoye

12,740

9.9

 -  

-

9.9

4,062

 -  

-

4,062

 

 

 

 

 

 

 

 

 

 

Dukat hub

1,310

 

 

 

15.3

137

37,297

 

646

Dukat (3)

40

1.2

822

-

12.4

1

936

-

14

Lunnoye

240

2.2

 651  

-

11.0

17

 4,994  

-

84

Goltsovoye

250

-

 872  

-

12.0

-  

 7,098  

-

97

Arylakh

150

0.9

 502  

-

7.7

4

 2,423  

-

37

Olcha

120

9.6

 37  

-

10.1

38

 146  

-

40

Perevalnoye (4)

20

-

 564  

-

7.7

 -  

 379  

-

5

Primorskoye (5)

490

4.8

 1,336  

 -

23.1

 76  

 21,320

 -

368

 

 

 

 

 

 

 

 

 

 

Varvara hub

35,490

 

 

 

1.8

1,174

144

132.0

2,062

Varvara (6)

34,950

1.0

-

0.55

1.8

1,173

-

124.3

2,012

Tarutin (7)

540

0.1

8

1.45

2.9

2

144

7.7

50

 

 

 

 

 

 

 

 

 

 

Omolon hub

920

 

 

 

13.0

276

9,376

-

384

Oroch

130

7.5

608

-

15.9

31

2,517

-

66

Tsokol Kubaka

50

7.0

14

-

7.1

11

22

-

11

Burgali

50

11.9

15

-

12.0

21

26

-

21

Irbychan (8)

260

9.6

 194  

-

12.0

78

 1,580  

-

98

Yolochka (9)

240

11.1

10

-

11.2

85

73

-

86

Nevenrekan (10)

190

8.0

 832  

-

16.5

50

 5,157  

-

102

 

 

 

 

 

 

 

 

 

 

Voro hub

4,750

 

 

 

4.1

618

1,696

-

626

Tamunier (11)

4,750

4.0

 11  

-

4.1

618

1,696  

-

626

 

 

 

 

 

 

 

 

 

 

Okhotsk hub

162

 

 

 

7.7

39

108

 

40

Avlayakan

20

17.8

137

-

19.5

9

69

-

10

Kirankan (12)

142

6.5

8

-

6.7

30

39

-

30

 

 

 

 

 

 

 

 

 

 

Development and exploration projects

 

 

 

 

 

 

 

 

 

Kyzyl project (Bakyrchik) (13)

14,160

6.8

 -  

-

6.8

3,107

 -  

-

3,107

Maminskoye (14)

2,130

1.4

 -  

-

1.4

99

 -  

-

99

Veduga (15)

580

4.1

 -  

-

4.1

77

 -  

-

77

Kutyn (16)

4,920

4.1

 -  

-

4.1

649

 -  

-

649

Total Measured + Indicated + Inferred

83,182

 

 

 

4.8

11,282

48,620

132.0

12,797

 

1)         Мineral Resources are reported in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Discrepancies in calculations are due to rounding.

 

2)         Mineral Resources estimate for Anfisa, Olga/Nadezhda, Ekaterina-1 and Ekaterina-2 zones revised as at 01.01.2016. Estimate for underground prepared by Polymetal as at 01.01.2015. COG (Au)=3.0 g/t. Revised estimate for underground was not performed due to lack of material changes. Farida zone was added, with initial Mineral Resources estimate prepared by Polymetal as at 01.01.2016.

 

3)         Including Khrustalny zone, with initial Mineral Resource estimate prepared by Polymetal as at 01.01.2016.

 

4)         Initial estimate prepared by Polymetal as at 01.01.2016.

 

5)         Initial estimate prepared by Polymetal as at 01.01.2016.

 

6)         Cu estimate is listed for fresh ore and powder ore that has high Cu grade (total Mineral Resources for fresh ore and powder ore with high Cu grade of 15.6 and 7.1 Mt of ore respectively).

 

7)         Estimate prepared by Polymetal as at 01.01.2016. Mineral Resources are presented in accordance with the Company's ownership equal to 50%.

 

8)         Initial estimate prepared by Polymetal as at 01.01.2016.

 

9)         Initial estimate prepared by Polymetal as at 01.01.2016.

 

10)       Initial estimate prepared by Polymetal as at 01.01.2016.

 

11)       Initial estimate prepared by Snowden as at 01.01.2012. COG (Au)=1.0 g/t. Revised estimate prepared by Polymetal as at 01.01.2016.

 

12)       Estimate prepared by Snowden as at 01.07.2011. COG (Au)=1.5 g/t. Revised estimate was not performed due to lack of material changes.

 

13)       Estimate prepared by RPA Inc. as at 01.01.2015. Price: Au = 1,200 $/oz. Revised estimate was not performed due to lack of material changes.

 

14)       Estimate prepared by Polymetal as at 01.01.2014. Price: Au = 1,300 $/oz. Revised estimate was not performed due to lack of material changes.

15)       Initial estimate prepared by Snowden as at 01.01.2014. COG (Au)=2.0 g/t. Revised estimate prepared by Polymetal as at 01.01.2016. Mineral Resources are presented in accordance with the Company's ownership equal to 42.65%.

16)       Initial estimate for open pit prepared by Snowden, for underground by CSA Global Pty Ltd as at 01.01.2015. Price: Au = 1,300 $/oz. Revised estimate was not performed due to lack of material changes.

 
                                   

 

This estimate was prepared by employees of JSC Polymetal Management Company and CJSC Polymetal Engineering, subsidiaries of the Company, led by Mr. Valery Tsyplakov, who assumes overall responsibility for the Mineral Resources and Ore Reserves Report. Mr. Tsyplakov is the employed full-time as the Managing Director of CJSC Polymetal Engineering and has more than 15 years' experience in gold, silver and polymetallic mining. He is a Member of the Institute of Materials, Minerals & Mining (MIMMM), London, and a Competent Person under the JORC Code.

Listed below are other Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate is based:

·        Geology and Mineral Resources - Roman Govorukha, Head of Geologic Modelling and Monitoring, MIMMM, with 15 years' relevant experience;

·        Mining and Ore Reserves - Igor Epshteyn, Head of Mining Process Department, FIMMM, with 34 years' relevant experience;

·        Concentration and Metals - Igor Agapov, Deputy Director of Science and Technology, MIMMM, with 18 years' relevant experience;

·        Environmental Issues - Tatiana Kuleshova, Director for Ecology, MIMMM, with 25 years' relevant experience.

All above mentioned Competent Persons have sufficient experience that is relevant to the style of mineralisation and types of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code).

All Competent Persons have given their consent to the inclusion in the report of the matters based on his (or her) information in the form and context in which it appears.

Metals prices used in estimating Mineral Resources and Ore Reserves are listed below (unless otherwise indicated in the footnotes):

Au = US$1,100/oz;

Ag = US15.0/oz;

Cu = US$5,000/t;

Gold equivalent data is based on "Conversion ratios of metals into gold equivalent" provided in the Appendix below. Lead and zinc Ore Reserves and Mineral resources have not been assessed in this report due to immateriality.

Enquiries

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+44 20 3727 1000

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ir@polymetalinternational.com

 

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FORWARD-LOOKING STATEMENTS

 

THIS RELEASE MAY INCLUDE STATEMENTS THAT ARE, OR MAY BE DEEMED TO BE, "FORWARD-LOOKING STATEMENTS".  THESE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS RELEASE. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY, INCLUDING THE WORDS "TARGETS", "BELIEVES", "EXPECTS", "AIMS", "INTENDS", "WILL", "MAY", "ANTICIPATES", "WOULD", "COULD" OR "SHOULD" OR SIMILAR EXPRESSIONS OR, IN EACH CASE THEIR NEGATIVE OR OTHER VARIATIONS OR BY DISCUSSION OF STRATEGIES, PLANS, OBJECTIVES, GOALS, FUTURE EVENTS OR INTENTIONS.  THESE FORWARD-LOOKING STATEMENTS ALL INCLUDE MATTERS THAT ARE NOT HISTORICAL FACTS.  BY THEIR NATURE, SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS BEYOND THE COMPANY'S CONTROL THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.  SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY'S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE IN THE FUTURE. FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE. THERE ARE MANY FACTORS THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN SUCH FORWARD-LOOKING STATEMENTS. THE COMPANY EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY CHANGE IN THE COMPANY'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS ARE BASED.

 

 

Appendix

Reporting of Metal Equivalents

Silver/gold equivalent conversion ratio for precious metals deposits:

AuEqv=Ag/k

Where k is the silver to gold equivalent conversion rate based on the difference in respective metals' value using the following formula:

k=((Au price/31.1035 - (Au price /31.1035 - treatment charge Au)*(Royalty Au)/100 - (treatment charge Au))*(recovery Au)/((Ag price/31.1035 - (Ag price/31.1035 - treatment charge Ag)*(Royalty Ag)/100 - (treatment charge Ag))*(recovery Ag))

where Royalty is the mineral extraction tax at applicable rate, recovery - life-of-mine expected recovery of the respective the metal in the processing technology applied.

Silver/gold equivalent conversion ratios for precious metals deposits:

Deposit

Ore processing technology

k

  
 

Dukat

Conventional flotation

82

  

Khrustalny

Conventional flotation

73

  

Lunnoye

Cyanidation+Merrill Crowe process

74

  

Goltsovoye

Conventional flotation

73

  

Arylakh

Cyanidation+Merrill Crowe process

74

  

Olcha

Cyanidation+Merrill Crowe process

74

  

Perevalnoye

Conventional flotation

73

  

Primorskoye

Conventional flotation

79

  

Birkachan

Cyanidation сarbon-in-pulp

90

  

Heap leaching+сarbon-in-colon

104

  

Sopka Kvartsevaya

Cyanidation+Merrill Crowe process

88

  

Heap leaching+Merrill Crowe process

108

  

Oroch

Cyanidation+Merrill Crowe process

73

  

Dalneye

Cyanidation+Merrill Crowe process

97

  

Heap leaching+Merrill Crowe process

126

  

Tsokol Kubaka

Cyanidation сarbon-in-pulp

90

  

Burgali

Cyanidation+Merrill Crowe process

115

  

Irbychan

Cyanidation+Merrill Crowe process

80

  

Yolochka

Cyanidation сarbon-in-pulp

91

  

Nevenrekan

Cyanidation+Merrill Crowe process

98

  

Voro

Heap leaching+Merrill Crowe process

219

  

Cyanidation сarbon-in-pulp

110

  

Tamunier

Conventional flotation

199

  

Svetloye

Heap leaching+Merrill Crowe process

467

  

Avlayakan

Cyanidation+Merrill Crowe process

81

  

Ozerny

Cyanidation+Merrill Crowe process

93

  

Khakanja

Cyanidation+Merrill Crowe process

107

  

Kirankan (1)

Cyanidation+Merrill Crowe process

60

  

1)         Silver to gold equivalent conversion ratios were not recalculated to deposits that were evaluated in 2011-2012.

Gold equivalent conversion ratio for polymetallic deposits

AuEqv=Me/k

Where Me is the evaluated metal content (copper, silver)

Where k is the silver to gold equivalent conversion rate that is calculated considering the difference in metals value issuing the following formula:

For silver (similar to the formula for precious metals deposits), for copper (%):
k = 100*((Au price/31.1035-tretment charge Au)*(1-royalty Au%/recovery Au%)*(recovery Au%))/((Cu price-treatment charge Cu)*(1-royalty Cu%/recovery Cu%)*(recovery Cu%))

where Royalty is the mineral extraction tax at applicable rate, recovery - life-of-mine expected recovery of the respective metal in the processing technology applied.

Gold equivalent conversion ratios for polymetallic deposits

Deposit

Ore processing technology

k

Ag

Cu

Varvara

Powder ore with high copper content (1)

 

0.48

Primary ore with high copper content - conventional flotation

 

0.48

Tarutin

Primary ore - conventional flotation

94

0.53

Oxidised ore - conventional flotation

94

0.53

North Kaluga

Conventional flotation

91

0.68

1)         This type of ore is currently not being processed, it is stockpiled and reflected only in Mineral Resources.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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