Reserves&Resources update as at 1 January 2014

RNS Number : 4344C
Polymetal International PLC
17 March 2014
 



 

 

Release time

 

IMMEDIATE

Date

17 March 2014

 

 

Polymetal International plc

Ore Reserves, Mineral Resources and Exploration update as at 1 January 2014

 

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 2013 and an update of its Ore Reserves and Mineral Resources as at 1 January 2014 in accordance with the JORC Code (2012).

 

HIGHLIGHTS

·     In 2013 Polymetal's Ore Reserves decreased by 12% to 13.3 Moz of gold equivalent ("GE"), while Mineral Resources (additional to Ore Reserves) declined by 11%. The declines were driven mostly by more stringent economic evaluation with the same prices of $1,300/oz gold and $22.5/oz silver used to estimate both Reserves and Resources;

·     The key material additions to Ore Reserves were due to resource-to-reserve conversion at Oroch (241 Koz GE) and acquisition of Maminskoye (913 Koz GE). Decreases in Ore Reserves, in addition to regular depletion (1,517 Koz GE), were mostly due to changes in mine plans driven by geotechnical and economic factors (where required additional capital expenditures are not generating above-hurdle rates of return):

o  Re-optimization of open pits at Birkachan, Sopka and Dalnee;

o  Exclusion of remote ore zones and ore bodies requiring significant additional investment in access at Dukat;

o  Indefinite postponement of underground mining at Khakanja;

·     Mineral Resources decreased mostly as a function of lower gold price used in estimates ($1,300/oz vs. $1,500/oz in 2012);

·     Average Ore Reserve grade remains high at 3.7 g/t GE, a decline of 7% compared with 2012, while average Mineral Resource grade increased by 14% to 3.7 g/t as a result of lower-quality Mineral Resources being excluded from the estimate;

·     Gold equivalent data in this report is based on price assumptions used as well as on recoveries for different commodities (refer to Appendix). The average gold/silver conversion ratio is 59.6;

·     Polymetal continued to invest in exploration in 2013 with total meters drilled increasing 72% year-on-year to 194.9 km. Total dollar expenditure on exploration declined mostly due to the decrease in the unit costs of drilling and a reduction in early-stage activities such as trenching;

·     Material additions to Ore Reserves during 2014 are expected at Svetloye (Q2), Albazino (Q4), and Kutyn (Q4), with further likely additions at near-mine properties at Omolon and Voro.

 "Polymetal remains committed to the strategic goal of maintaining and expanding high-quality Ore Reserves at our assets", said Vitaly Nesis, CEO of Polymetal, commenting on the results. "Reductions in Ore Reserves and Mineral Resources in 2013 are expected to be significantly reversed in 2014 as we step up our exploration efforts and complete feasibility studies on several projects."

 

Ore Reserves and Mineral Resources summary1 

1 January 2014

1 January 2013

Change



 


Ore Reserves (Proved + Probable), gold equivalent Moz

13.3

15.1

-12%

Gold, Moz

8.9

9.6

-7%

Silver, Moz

219.5

307.6

-29%

Copper, Kt

77.0

82.9

-7%



 


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

16.7

18.7

-11%

Gold, Moz

13.4

14.9

-10%

Silver, Moz

117.2

146.1

-20%

Copper, Kt

145.2

281.4

-48%

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

 

Ore Reserves and Mineral Resources structure by metal, 1 January 2014 (gold equivalent)

 

Ore Reserves

Mineral Resources




Gold

67%

80%

Silver

28%

12%

Copper

5%

8%

Total

100%

100%

 

Ore Reserves reconciliation, gold equivalent, Koz

 

Ore Reserves, 01.01.2013

Processing

Revaluation

Initial evaluation

Ore Reserves, 01.01.2014






15,138

-1,517

-1,498

1,154

13,277

 

Mineral Resources and Ore Reserves as at 1 January 2014 (1) 

Tonnage

Content


Kt

Au, Koz

Ag, Koz

Cu, Kt

Gold equivalent, Koz

Mineral Resources








Measured

11,110

870

39,532

15

1,665

Indicated

39,156

2,534

38,053

61

3,705

Measured + Indicated

50,266

3,404

77,585

76

5,370

Inferred

88,057

10,026

39,613

69

11,293

Measured + Indicated + Inferred

138,324

13,430

117,198

145

16,663









Ore Reserves








Proved

53,525

4,950

129,354

8

7,161

Probable

59,440

3,950

90,107

69

6,116

Proved + Probable

112,965

8,900

219,461

77

13,277

 

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

Ore Reserves: Precious Metals Deposits as at 1 January 2014 (1)

Ore Reserves

Tonnage

Grade

Content

Kt

Au, g/t

Ag, g/t

GE, g/t

Au, Koz

Ag, Koz

GE, Koz

Proved








Dukat

5,330

1.0

443

8.8

171

76,013

1,505

Voro (2)

13,230

2.8

4

2.8

1,186

1,504

1,195

Lunnoye

1,330

1.6

296

6.6

68

12,676

283

Arylakh

345

0.9

478

8.7

10

5,301

97

Khakanja

1,370

1.5

112

2.8

65

4,939

124

Mayskoye

3,310

9.0

-

9.0

955

-

955

Albazino

6,700

5.1

-

5.1

1,093

-

1,093

Sopka Kvartsevaya

2,970

2.4

95

3.8

230

9,053

360

Birkachan

3,050

1.7

5

1.8

166

488

172

Dalnee

1,250

4.3

92

5.4

172

3,693

218

Oroch (3)

930

4.0

172

6.6

119

5,154

197

Tsokol Kubaka

430

6.3

11

6.5

87

157

89

Avlayakan

170

11.3

89

12.7

61

484

69

Ozerny

380

3.9

43

4.4

47

519

53

Maminskoye (4)

4,810

1.9

-

1.9

295

-

295

Total Proved

45,605



4.6

4,725

119,981

6,704









Probable








Dukat

4,670

0.8

386

7.6

119

57,959

1,136

Lunnoye

1,320

1.1

346

6.9

45

14,683

294

Arylakh

310

1.0

500

9.2

10

4,985

92

Mayskoye

3,820

8.6

-

8.6

1,058

-

1,058

Albazino

2,460

5.2

-

5.2

409

-

409

Sopka Kvartsevaya

80

4.5

145

7.4

13

406

19

Birkachan

730

13.0

58

13.9

306

1,364

325

Oroch (3)

190

4.2

197

7.2

26

1,206

44

Tsokol Kubaka

440

8.1

13

8.3

114

178

117

Avlayakan

280

18.4

163

20.8

166

1,473

188

Ozerny

400

5.9

29

6.3

76

369

81

Maminskoye (4)

9,890

1.9

-

1.9

618

-

618

Total Probable

24,590



5.5

2,959

82,622

4,380









Proved + Probable








Dukat

10,000

0.9

416

8.2

290

133,972

2,640

Voro (2)

13,230

2.8

4

2.8

1,186

1,504

1,195

Lunnoye

2,650

1.3

321

6.8

113

27,359

577

Arylakh

655

1.0

489

9.0

20

10,286

189

Khakanja

1,370

1.5

112

2.8

65

4,939

124

Mayskoye

7,130

8.8

-

8.8

2,013

-

2,013

Albazino

9,160

5.1

-

5.1

1,501

-

1,501

Sopka Kvartsevaya

3,050

2.5

97

3.9

242

9,459

379

Birkachan

3,780

3.9

15

4.1

471

1,853

497

Dalnee

1,250

4.3

92

5.4

172

3,693

218

Oroch (3)

1,120

4.0

177

6.7

144

6,360

241

Tsokol Kubaka

870

7.2

12

7.4

201

335

207

Avlayakan

450

15.7

135

17.8

227

1,956

257

Ozerny

780

5.0

36

5.4

123

887

134

Maminskoye (4)

14,700

1.9

-

1.9

913

-

913

Total Proved + Probable

70,195



4.9

7,684

202,603

11,084

 

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

2 Including Voro South

3 Estimate prepared by Polymetal as at 01.01.2014. Price: Au=1,300 $/oz, Ag = 23 $/oz

4 Initial estimate prepared by Snowden as at 01.01.2013. Revised estimate prepared by Polymetal as at 01.01.2014

 

Ore Reserves: Polymetallic Ore Deposits as at 1 January 2014 (1)

Ore Reserves

Tonnage

Grade

Content

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

Proved










Goltsovoye

470

-

623

-

10.7

-

9,373

-

162

Varvara (2)

7,450

0.9

-

0.46

1.2

225

-

7.9

295

Total Proved

7,920




1.8

225

9,373

7.9

457












Probable











Goltsovoye

450

-

519

-

8.9

-

7,485

-

129

Varvara (2)

34,400

0.9

-

0.45

1.5

991

-

69.1

1,607

Total Probable

34,850




1.5

991

7,485

69.1

1,736













Proved + Probable











Goltsovoye

920

-

572

-

9.9

-

16,858

-

291

Varvara (2)

41,850

0.9

-

0.45

1.4

1,216

-

77.0

1,902

Total Proved + Probable

42,770




1.6

1,216

16,858

77.0

2,192

 

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

2Cu grade only represents average grade of Float feed. Ore Reserves of Float feed: 1.7 Mt Proved and 15.5 Mt Probable.

 

Mineral Resources: Precious metals as at 1 January 2014 (1)

Mineral Resources

Tonnage

Grade

Content

Kt

Au, g/t

Ag, g/t

GE, g/t

Au, Koz

Ag, Koz

GE, Koz

Measured








Dukat

1,190

1.2

490

9.8

46

18,808

376

Voro (2)

800

2.1

4

2.1

53

105

54

Lunnoye

510

2.6

604

12.8

42

9,913

210

Arylakh

50

1.3

880

15.7

2

1,404

25

Khakanja

350

5.4

341

9.5

61

3,818

106

Mayskoye

660

8.9

-

8.9

188

-

188

Albazino (3)

1,150

5.2

-

5.2

193

-

193

Sopka Kvartsevaya

70

1.9

97

3.2

4

216

7

Birkachan

160

15.1

24

15.5

79

123

81

Dalnee

90

3.0

58

4.0

9

177

11

Oroch (4)

230

2.1

92

3.5

16

677

26

Tsokol Kubaka

40

6.0

10

6.1

8

14

8

Avlayakan

10

12.4

119

14.3

5

49

6

Ozerny

10

3.1

37

3.6

1

7

1

Maminskoye (8)

980

1.4

-

1.4

44

-

44

Total Measured

6,300



6.6

751

35,312

1,336









Indicated








Dukat

1,170

0.8

383

7.5

31

14,446

284

Lunnoye

420

1.7

390

8.3

23

5,287

113

Arylakh

40

1.2

625

11.5

2

796

15

Khakanja

100

4.8

199

7.1

17

689

25

Mayskoye

1,090

8.7

-

8.7

306

-

306

Albazino (3)

9,930

4.5

-

4.5

1,443

-

1,443

Sopka Kvartsevaya

10

2.5

85

2.9

1

21

1

Birkachan

180

10.3

34

10.7

59

197

62

Oroch (4)

180

2.4

131

4.4

14

756

26

Tsokol Kubaka

110

9.2

11

9.4

31

36

31

Avlayakan

40

15.3

104

16.9

20

138

22

Ozerny

30

3.4

29

3.7

3

24

3

Maminskoye (8)

1,150

1.5

-

1.5

55

-

55

Total Indicated

14,450



5.1

2,003

22,390

2,385









Measured + Indicated








Dukat

2,360

1.0

436

8.6

76

33,254

660

Voro (2)

800

2.1

4

2.1

53

105

54

Lunnoye

930

2.2

508

10.8

65

15,200

323

Arylakh

90

1.3

767

13.8

4

2,200

40

Khakanja

450

5.3

308

8.9

77

4,507

131

Mayskoye

1,750

8.8

-

8.8

493

-

493

Albazino (3)

11,080

4.6

-

4.6

1,636

-

1,636

Sopka Kvartsevaya

80

1.9

96

3.2

5

237

8

Birkachan

340

12.6

29

13.0

138

321

143

Dalnee

90

3.0

58

4.0

9

177

11

Oroch (4)

410

2.2

109

3.9

30

1,433

51

Tsokol Kubaka

150

8.3

11

8.5

39

50

39

Avlayakan

50

14.6

108

16.2

25

187

28

Ozerny

40

3.3

30

3.7

3

31

4

Maminskoye (8)

2,130

1.4

-

1.4

99

-

99

Total Measured + Indicated

20,750



5.6

2,754

57,702

3,721









Inferred








Lunnoye

550

1.9

667

13.2

33

11,791

233

Arylakh

130

0.7

385

7.0

3

1,598

29

Khakanja

10

2.8

199

5.2

1

49

1

Mayskoye

10,990

10.1

-

10.1

3,569

-

3,569

Albazino (3)

12,470

4.9

-

4.9

1,980

-

1,980

Birkachan

20

13.7

63

14.6

10

47

11

Oroch (4)

790

3.9

394

9.9

99

10,001

250

Tsokol Kubaka

50

7.5

13

7.7

11

19

12

Avlayakan

50

16.3

88

17.6

28

150

30

Kirankan (5)

142

6.5

8

6.7

30

39

30

Svetloye (6)

4,083

5.8

4

5.9

767

544

776

Ozerny

30

3.9

28

4.2

3

23

4

Kutyn (7)

5,505

4.1

-

4.1

717

-

717

     Tamunier (9)

24,070

1.9


1.9

1,475


1,475

Olcha (10)

9,200

2.2

12

2.4

653

3,590

713

Total Inferred

68,090



4.5

9,379

27,852

9,830









Measured + Indicated + Inferred








Dukat

2,360

1.0

437

8.7

76

33,254

660

Voro (2)

800

2.1

4

2.1

53

105

54

Lunnoye

1,480

2.1

567

11.7

98

26,991

555

Arylakh

220

0.9

541

9.8

7

3,798

69

Khakanja

460

5.2

306

8.9

78

4,556

132

Mayskoye

12,740

9.9

-

9.9

4,062

-

4,062

Albazino (3)

23,550

4.8

-

4.8

3,615

-

3,615

Sopka Kvartsevaya

80

1.9

96

3.1

5

237

8

Birkachan

360

12.6

31

13.1

148

368

154

Dalnee

90

3.0

58

4.0

9

177

11

Oroch (4)

1,200

3.3

296

7.8

128

11,434

302

Tsokol Kubaka

200

8.1

11

8.3

50

69

51

Avlayakan

100

15.5

98

16.9

53

337

58

Kirankan (5)

142

6.5

8

6.7

30

39

30

Svetloye (6)

4,083

5.8

4

5.9

767

544

776

Ozerny

70

3.6

29

3.9

7

55

7

Kutyn (7)

5,505

4.1

-

4.1

717

-

717

Maminskoye (8)

2,130

1.4

-

1.4

99

-

99

     Tamunier (9)

24,070

1.9

-

1.9

1,475

-

1,475

Olcha (10)

9,200

2.2

12

2.4

653

3,590

713

Total Measured + Indicated + Inferred

88,840



4.7

12,132

85,554

13,551

 

1  Mineral 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  Including Voro South

3   Revaluation performed only for mineral resources of Anfisa and Olga zones for open-pit mining. Initial estimate of mineral resources performed by

Snowden as at 01.08.2012. Price: Au=1,500 $/oz. Zones Ekaterina 1 and 2, and resources of Anfisa and Olga zones (including Nadezhda) for underground mining remained unchanged.

4  Estimate prepared by Polymetal as at 01.01.2014 Price: Au=1,500 $/oz, Ag=26 $/oz

5  Estimate prepared by Snowden as at 01.07.2011. COG=1.5 g/t

6  Estimate prepared by Snowden as at 01.07.2011. COG=3.0 g/t

7  Estimate prepared by Snowden as at 01.07.2011. COG=2.0 g/t

8  Initial estimate prepared by Snowden as at 01.01.2013. Revised estimate prepared by Polymetal as at 01.01.2014

9 Estimate prepared by Snowden as at 01.01.2012. COG (Au)=1.0 g/t. The mineral resource estimate includes ore zone 2 where Inferred mineral resources
 
are estimated at: 840 Kt, grading 4.0 g/t Au, 49 g/t Ag, containing 109 Koz Au and 1,327 Koz Ag. In other parts of the deposit there are no silver mineral
resources.

10 Estimate prepared by Mir Resources as at 07.07.2011. COG=1.0 g/t

 

Mineral Resources: Polymetallic ore Deposits as at 1 January 2014 1

Mineral Resources

Tonnage

Grade

Content

Kt

Au, g/t

Ag, g/t

Cu, %

GE, g/t

Au, Koz

Ag, Koz

Cu, Kt

GE, Koz

Measured












Goltsovoye

160

-

837

-

14.4

-

4,220

-

73

Varvara (2)

4,650

0.8

-

0.42

1.7

119

-

15.4

256

Perevalnoye(3)

-

-

-

-

-

-

-

-

-

Total Measured

4,810




2.1

119

4,220

15.4

329















Indicated














Goltsovoye

120

-

616

-

10.6

-

2,434

-

42

Varvara (2)

23,490

0.7

-

0.44

1.4

531

-

57.0

1,039

Perevalnoye (3)

1,096

-

375

0.34

6.8

-

13,229

3.7

239

Total Indicated

24,706




1.7

531

15,663

60.8

1,320















Measured + Indicated














Goltsovoye

280

-

740

-

12.8

-

6,654

-

115

Varvara (2)

28,140

0.7

-

0.44

1.4

650

-

72.4

1,295

Perevalnoye (3)

1,096

-

375

0.34

6.8

-

13,229

3.7

239

Total Measured + Indicated

29,516




1.7

650

19,883

76.2

1,649















Inferred














Goltsovoye

470

-

738

-

12.7

-

11,248

-

194

Varvara (2)

19,420

1.0

-

0.56

2.0

648

-

68.6

1,259

Perevalnoye (3)

78

-

206

0.46

4.1

-

513

0.4

10

Total Inferred

19,968




2.3

648

11,761

69.0

1,463















Measured + Indicated + Inferred














Goltsovoye

750

-

739

-

12.7

-

17,902

-

309

Varvara (2)

47,560

0.8

-

0.49

1.7

1,297

-

141.1

2,554

Perevalnoye (3)

1,174

-

364

0.35

6.6

-

13,742

4.1

249

Total Measured +Indicated+ Inferred

49,484




2.0

1,297

31,644

145.2

3,112

 

1 Mineral 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 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 23.5 and 5.4 tonnes of ore respectively)

3 Estimate prepared by Snowden as at 01.07.2011. Prices: Ag = 13$/oz, Cu=220c/lb

 

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 13 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 13 years' relevant experience;

·        Mining and Ore Reserves - Igor  Epshteyn, Head of Mining Process Department, FIMMM, with 32 years' relevant experience;

·        Concentration and Metals - Igor Agapov, Deputy Director of Science and Technology, MIMMM, with 16 years' relevant experience;

·        Environmental Issues - Tatiana Kuleshova, Director for Ecology, MIMMM, with 22 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$1,300/oz;

Ag = US$22.5/oz;

Cu = US$7,000/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.

 

 









Key exploration results and targets

 

Exploration results in 2013

 

Drilling, km


Trenching, 1000*m3


Level of activity


2013

2012


2013

2012


2014









Brownfield








Voro

-

-


-

-


intensive

Varvara

13.4

10.2


-

-


completed

Dukat

24.2

3.0


-

10.3



    Flanks

12.4

3.0


-

10.3


intensive

Olcha

11.8

-


-

-


some

Albazino

40.7

29.2


10.2

34.5


intensive

Khakanja

5.7

15.9


25.0

86.5



Flanks

5.7

7.6


25.0

44.1


intensive

Avlayakan

-

8.3


-

42.4


suspended

Omolon

23.0

12.0


52.2

31.5



Burgali

15.0

12.0


30.0

31.5


some

Nevenrekan

8.0

-


3.6

-


suspended

Adygaya

-

-


9.5

-


some

Pyatinakh

-

-


9.1

-


some

Subtotal

107.0

70.3


87.4

162.8











Greenfield








Urals

54.5

13.3


19.0

3.7



Maminskoye

25.4

-


3.8

-


intensive

Urals regional

15.6

8.3


7.0

3.7


suspended

Podolsky

-

5.0


-

-


suspended

Tamunyer

2.6

-


-

-


completed

Svetlobor (Pt)

10.9

-


8.2

-


intensive

FarEast

24.3

21.3


32.1

127.4



Kutyn

15.2

11.2


32.1

110.5


intensive

Svetloe

9.1

1.2


-

-


some

Uchama

-

3.8


-

10.4


suspended

Prognozny

-

5.1


-

6.5


suspended

North-West

9.1

8.6


-

0.3



Semcha (Pt-Pd)

4.2

-


-

-


intensive

Elmus

4.9

8.6


-

0.3


some

Subtotal

87.9

43.2


51.1

131.4











Total

194.9

113.5


138.5

294.2



 

Polymetal maintained a diversified program of exploration efforts covering both near-mine brownfield efforts and green-field standalone projects.  In 2014 the key projects where meaningful results are expected include:

 

·     Dukat flanks and deep levels with drilling concentrating on extensions of known veins beyond the down-dip limitations of historic exploration. Polymetal will also attempt to discover new vein down plunge of the host rock formation, under the cover of sedimentary rocks;

·     Olcha where drilling will focus on underground potential of currently known veins (Ore Reserves estimate expected by year-end);

·     Albazino with continuing in-fill drilling from both underground and surface at Olga, Nadezhda, and Ekaterina-2 ore bodies as well as underground ore drifting at Olga.  The Company plans to conclude the full feasibility study on expanding the existing mine (Albazino-2) and make the development decision in Q4 of 2014;

·     Maminskoye with significant amount of drilling dedicated to down-dip extensions of known high-grade portions of the deposit (Ore Reserves update expected by year-end);

·     Kutyn where the focus remains on near-surface heap leachable mineralization including the extensions of known ore bodies;

·     Semcha with drilling the tabular PGM-bearing reef on regular grid along the known surface outcrop to the depth of 100m.

Ore Reserve estimates are also expected to be completed at Burgali and Nevenrekan. The Company expects to participate in several auctions for new license areas, mostly in the general vicinity of existing mines, primarily around Dukat and Omolon.

 

Exploration work at Svetlobor is slowed down by ongoing forestry permitting process with drilling likely to resume only in Q3. The continuation of drilling programs at Svetloye and Varvara is contingent upon the extension of areas currently covered by subsoil licenses.

Enquiries

Media

 

Investor Relations

Instinctif Partners

Leonid Fink

Tony Friend

+44 20 7457 2020

Polymetal

Maxim Nazimok

Evgenia Onuschenko

Elena Revenko

ir@polymetalinternational.com

 

+7 812 313 5964 (Russia)

+44 20 7016 9503 (UK)

Joint Corporate Brokers

 

Morgan Stanley

Bill Hutchings

Sam McLennan

+44 20 7425 8000

RBC Europe Limited

Stephen Foss

Jonny Hardy

+44 20 7653 4000

 

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 MetalEquivalents

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

57

Voro

Heap leaching+Merrill Crowe process

121

Cyanidation сarbon-in-pulp

177

Lunnoye

Cyanidation+Merrill Crowe process

59

Arylakh

Cyanidation+Merrill Crowe process

61

Khakanja

Cyanidation+Merrill Crowe process

84

Sopka

Cyanidation+Merrill Crowe process

61

Heap leaching+Merrill Crowe process

85

Birkachan

Cyanidation сarbon-in-pulp

71

Heap leaching+сarbon-in-colon

79

Dalnee

Cyanidation+Merrill Crowe process

77

Heap leaching+Merrill Crowe process

100

Oroch

Cyanidation+Merrill Crowe process

66

Tsokol Kubaka

Cyanidation сarbon-in-pulp

71

Avlayakan

Cyanidation+Merrill Crowe process

66

Kirankan 1)

Cyanidation+Merrill Crowe process

60

Svetloye1)

Heap leaching+Merrill Crowe process

60

Olcha1)

Ozerny

Cyanidation+Merrill Crowe process

Cyanidation+Merrill Crowe process

60

81

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%/change 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 the metal in the processing technology applied.

 

Gold equivalent conversion ratios for polymetallic deposits

Deposit

Ore processing technology

k

Ag

Cu

Goltsovoye (1)

Conventional flotation

58


Varvara

Powder ore with high copper content (2)


0.36

Primary ore with high copper content - conventional flotation


0.36

Perevalnoye(3)

Conventional flotation

60

0.64

1) Due to the lack of gold in ore the ratio equals silver/gold ratio

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

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


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