Significant Mineral Resource expansion at Albazino

RNS Number : 5320S

Polymetal International PLC

03 December 2012

 



Release time	IMMEDIATE
Date	3 December 2012

Polymetal International plc

Significant Mineral Resource expansion at Albazino

Polymetal International plc (LSE: POLY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to provide an update on Mineral Resources at Albazino.

Highlights

·     As of 1 August 2012, Mineral Resources at Albazino were estimated at 37 Mt with the average grade of 4.8 g/t of Au containing 5.7 Moz of Au (in accordance with JORC Code 2004). This estimate more than doubles the size of the asset's Mineral Resource compared to the previous estimate (19 Mt at 4.5 g/t Au containing 2.8 Moz of Au as of 1 January 2012). The cost of discovery was approximately $12 dollars per ounce of resources.

·     The Mineral Resource estimate now includes five ore zones: Olga, Anfisa, Nadezhda, Ekaterina 1 and Ekaterina 2. Anfisa is currently subject to open pit mining. The development plan for other zones will be determined after the completion of the optimisation study, currently expected in Q2 2013.

·     Active exploration at Albazino is ongoing with further Mineral Resource potential identified, most importantly along strike at Ekaterina 2 and at the new Tatyana zone. In-fill underground drilling in 1H 2013 is expected to lead to a substantial upgrade of inferred resources and allow meaningful resource-to-reserve conversion.

"Once again, exploration results at Albazino highlight the tremendous potential of this asset and pave the way for the expansion decision to be taken in the second half of 2013," said Vitaly Nesis, CEO of Polymetal. "Albazino is an excellent example of Polymetal's ability to create value by discovering high-grade ounces close to existing processing facilities".

Albazino Mineral Resources

Mineral Resources 1,2,3,4	Tonnage	Au grade	Au content
	Kt	g/t	Koz
Measured
Open Pit	8,400	5.4	1,463
Underground	700	5.8	130
Existing Stockpile	510	3.8	62
Subtotal Measured	9,610	5.4	1,656
Indicated
Open Pit	5,700	4.0	730
Underground	8,710	4.7	1,318
Subtotal Indicated	14,410	4.4	2,048
Measured+Indicated
Open Pit	14,100	4.8	2,193
Underground	9,410	4.8	1,448
Existing Stockpile	510	3.8	62
Subtotal Measured+Indicated	24,020	4.8	3,703
Inferred
Open Pit	1,680	2.8	151
Underground	11,310	5.1	1,868
Subtotal Inferred	12,990	4.8	2,019
Measured+Indicated+Inferred
Open Pit	15,780	4.6	2,344
Underground	20,720	5.0	3,316
Existing Stockpile	510	3.8	62
Total Measured+Indicated+Inferred	37,010	4.8	5,723

¹ Mineral Resources are reported inclusive of Ore Reserves

² As of 01.08.2012

³ Open Pit COG=1.0 g/t, Underground Mining at COG=2.3 g/t

⁴ Au price 1,500 $/oz

The previous assessment of Mineral Resources for Albazino was reflected in the Group's Annual Report 2011 as a part of Ore Reserves and Mineral Resources update.

The increase in Albazino Mineral Resources in comparison with the previous estimate as of 01.01.2012 is as follows:

Mineral Resources 1,2,3	Unit	Mineral Resources	Depletion	Mineral Resources	Mineral Resources
		01.01.2012		01.08.2012	Increase
Total Measured+Indicated+Inferred	kt	19,090	810	37,010	18,730
	Au, g/t	4.5	4.9	4.8	5.1
	Au, Koz	2,751	127	5,723	3,099

¹ Mineral Resources are reported inclusive of Ore Reserves

² Open Pit COG=1.0 g/t, Underground Mining at COG=2.3 g/t

³ Au price 1,500 $/oz at 01.08.2012; Au price 1,350 $/oz at 01.01.2012

Asset overview  

Albazino is the second Polymetal's greenfield mine (after Khakanja mine) located in the Khabarovsk territory, Russia. Albazino is located approximately 440 km from the Amursk POX hub and accessible by a year-round road. The deposit comprises operating open-pit mine and a 1.5 Mtpa on-site flotation concentrator which started up in April 2011 and now is running at full design capacity.

Exploration activity at Albazino was performed at the following ore zones: Anfisa, Olga, Nadezhda, Ekaterina 1 and Ekaterina 2.

Albazino prospects map (please see in the attached document)

http://www.rns-pdf.londonstockexchange.com/rns/5320S_1-2012-12-3.pdf

The deposit is characterized by a number of northwest-trending mineralized zones, separated by structural controls. Mineralization horizons are characteristically disseminated quartz veins, stockworks and contact breccia zones and vary in thickness from 3 m up to 90 m. Gold is refractory and is recovered by sulfide flotation.

The documentation regarding this estimate was compiled by Mr George Gilchrist, (BSc (Hons) Geology, Pr.Sci.Nat with the South African Council for Natural Scientific Professions (SACNASP), Senior Consultant with Snowden. Mr Gilchrist has sufficient experience (12 years) relevant to the type of deposit under consideration and to the activity which he is undertaking to quality as a Competent Person as defined under the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". George Gilchrist consents to the inclusion in this statement of the matters based on his information in the form and context in which it appears. The full Mineral Resource report is available upon request.

 

Further exploration activity

Additional exploration activity since 1 August 2012 included 6,216 m of drilling and 25,405 meters of trenches and identified substantial exploration potential at Albazino deposit.

Albazino selected recent exploration results (post 1.8.2012)

Zone	Drill Hole No.	True Width (meters)	Gold (g/t)
Nadezhda	a21d0047	12.7	3.2
Ekaterina 2	a12d0007	10.0		13.9
	and	13.0		3.1
	a12d0008	8.0		8.8
	and	5.0		21.9
	a12d0021	15.9		3.3
	and	12.0		3.9
	and	7.9		5.0
	a12d0038	14.1		4.3
	and	7.4		6.3

Enquiries

Media		Investor Relations
College Hill Leonid Fink Tony Friend	[phone]	Polymetal Maxim Nazimok Evgenia Onuschenko Elena Revenko	[e-mail] [phone] (Russia) [phone] (UK)
Joint Corporate Brokers
Morgan Stanley Sam McLennan Sandip Patodia	[phone]	Canaccord Genuity Roger Lambert	[phone]

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

 

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