REG - Polymetal Int PLC - Reserve and Resource update as at 1 January 2018

Polymetal International PKAnnouncement

05/03/2018 07:00

RNS Number : 6462G
Polymetal International PLC
05 March 2018
Release time
IMMEDIATE
Date
5 March 2018
Polymetal International plc
Ore Reserves, Mineral Resources and Exploration update as at 1 January 2018
Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") provides an Exploration update for the year ended 31 December 2017, and reports its Ore Reserves and Mineral Resources as at 1 January 2018 in accordance with the JORC Code (2012).
2017 HIGHLIGHTS
 In 2017, the Company continued to use conservative gold and silver price assumptions from the previous year of US$ 1,200/oz and US$ 16/oz, respectively.
 The Company increased its Ore Reserves by 5% to 20.9 Moz of gold equivalent (GE) on the back of successful exploration at Albazino, Komar and Dukat, as well as initial reserve estimates at Kapan and Nezhda. 
 Gold reserves were up 5% at 18.4 Moz, while silver reserves decreased 3% to 158 Moz. At the same time, copper reserves grew 25% to 82 Kt.
 Mineral Resources (in addition to Ore Reserves) increased 10% to 18.2 Moz of GE, mainly driven by initial resource estimates for the Pesherniy and Nezhda deposits, as well as resource additions at the deeper levels of Mayskoye and Dukat.
 The average grade in Ore Reserves was stable year-on-year at 3.9 g/t of GE and remains one of the highest in the sector. At the same time, the average grade in Mineral Resources increased 11% to 4.7 g/t of GE due to high-grade resource additions at new projects.
 Polymetal completed 421 km of exploration drilling in 2017, up 48% year-on-year as the scope of exploration expanded to include new assets, mostly Prognoz and Nezhda, in addition to continued exploration efforts at existing operations.
"In 2017, Polymetal succeeded in extending life-of-mine at producing assets and continued to invest in the next leg of our growth", - said Vitaly Nesis, Group CEO of Polymetal,commenting on the results. "We expect 2018 to result in further significant extensions of our reserves and resources".
Ore Reserves and Mineral Resources summary (1)

1 January 2018
1 January 2017
Change, %



Ore Reserves (Proved + Probable), gold equivalent Moz
20.9
19.8
5%
Gold, Moz
18.4
17.6
5%
Silver, Moz
158.0
163.0
-3%
Copper, Kt
81.6
65.4
25%
Zinc, Kt (2)
85.8
NA
NA
Average reserve grade, g/t
3.9
3.8
+1%




Mineral Resources (Measured + Indicated + Inferred), gold equivalent Moz
18.2
16.5
+10%
Gold, Moz
15.7
14.4
+9%
Silver, Moz
109.1
87.5
+25%
Copper, Kt
147.9
206.7
-28%
Zinc, Kt(2)
221.8
NA
NA
Average resource grade, g/t
4.7
4.2
+11%
1) Mineral Resources are additional to Ore Reserves. Mineral Resources and Ore Reserves of Lead are not presented due to the immaterialityand are not included in the calculation of the gold equivalent. PGMMineralResources arepresentedseparatelyandare not included in the calculation of the gold equivalent.
Discrepancies in calculations are due to rounding.
2) Zinc was not included in the calculation of the gold equivalent for theOre Reserves and Mineral Resource statement as at 01.01.2017 due to immateriality
2018 OUTLOOK
In 2018, Polymetal will continue to invest in exploration with the goal to expand the pace and scope of drilling, as well as prospect evaluation. The key objectives are as follows:
 To achieve resource-to-reserveconversions at existing operations with relatively shorter LOM
 Polymetal aims to complete initial ore reserves estimates for the following deposits in 2018: 
o Irbychan and Yolochkaat Omolon
o Saum and Pesherny at Voro
o Levoberezhny and Kundumi at Okhotsk
o Primorskoye and Perevalnoye (revaluation) at Dukat
 To prepare an updated mineral resource estimate and achieve resource-to-reserveconversion at Nezhda to include the southern flank of ore zone 1 and smaller mineralised zones
 To compete an audited JORC-compliant resource estimate for Prognoz largest ore zones, Main and Swamp
 To prepare an updated mineral resources estimate for Viksha based on new drilling data and metallurgical studies
 To continue step-out and in-fill drilling at Kyzyl to increase reserves for open pit mining
Ore Reserves and Mineral Resources by metal, 1 January 2018
Ore Reserves
Mineral Resources



Gold
88%
86%
Silver
9%
7%
Copper
2%
5%
Zinc
1%
2%
Total
100%
100%
Ore Reserves reconciliation, gold equivalent, Moz
Ore Reserves, 01.01.2017
Gold/silver/copper price ratio change (1)
Depletion
Revaluation
Initial reserve estimates
Ore Reserves, 01.01.2018
19.8
0.05
-1.6
1.2
1.4
20.9
1) Please refer to the Appendix for the gold equivalent conversion ratios and applicable methodology.
Mineral Resources and Ore Reserves as at 1 January 2018 (1)

Tonnage
 Grade
Content

Mt
 GE, g/t
GE, Moz
Mineral Resources




Measured
20.2
2.7
1.8
Indicated
30.7
3.8
3.7
Measured + Indicated
50.9
3.3
5.5
Inferred
69.1
5.7
12.8
Measured + Indicated + Inferred
120.0
4.7
18.2





Ore Reserves




Proved
61.0
2.6
5.0
Probable
106.0
4.7
15.9
Proved + Probable
167.0
3.9
20.9
1)Mineral Resources and Ore Reserves in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. Mineral Resources and Ore Reserves for Lead are not presented due to their immaterialityand are not included in the calculation of the gold equivalent. PGMMineralResources arepresentedseparatelyandare not included in the calculation of the gold equivalent.
Any discrepancies in calculations are due to rounding.


Exploration areas and volumes (mine site exploration excluded) (1)
Drilling, km

2017
2016
Brownfield


Voro
11.0
13.7
Voro flanks
3.1
1.9
Tamunier
1.0
6.2
Other
6.8
5.6



Varvara
108.5
75.8
Varvara
35.6
23.6
Komar
71.4
44.6
Other
1.5
7.6



Dukat hub
28.8
51.3
 Dukat flanks
15.8
17.2
 Lunnoye flanks
2.3
13.8
 Primorskoye
6.9
11.0
Terem
3.8
4.7
Other
-
4.5



Albazino
30.2
27.9



Mayskoye
33.4
-



Okhotsk hub
48.0
28.2
Khotorchan/Gyrbykan
6.4
7.0
Svetloye
2.0
0.6
Maimakan-Kundumi
12.8
2.5
Levoberezhny
Kumirniy
15.2
6.6
8.3
-
Other
5.1
9.8



Omolon hub
18.4
32.8
Olcha
2.6
-
Oroch
-
1.7
Yolochka
6.7
5.9
Irbychan
4.7
11.6
Nevenrekan
4.4
8.4
Other
-
5.1



Kyzyl project
8.3
10.5
Bakyrchik
8.3
5.7
 Bolshevik
-
4.9
Subtotal
286.7
240.1



Greenfield


Urals
22.9
6.2



Karelia (Viksha)
39.6
12.8



Yakutia
70.9
39.4
Nezhda
33.7
39.4
Prognoz
37.3




Armenia
0.8
25.2
Lichkvaz
-
24.0
 Other
0.8
1.2



Subtotal
134.2
44.2
Total
420.9
284.3
1) Discrepancies in calculations are due to rounding.
EXPLORATION RESULTS
Dukat hub
 At the Dukat hub, the Company achieved a 70% increase in additional mineral resources. This success was primarily driven by additional exploration at the deeper levels of the Lunnoye deposit and the discovery of previously unknown veins at the Dukat flanks. In 2018, prospecting activities are set to continue at the northern and eastern flanks of Dukat.
 At the Primorskoye property, 6.9 km of exploration drilling was completed at ore zones 1 and 3 with a goal to trace ore bodies along the strike and at depth. In 2018, the Company intends to conduct further prospecting activities at other ore zones with the goal to increase the resource base of the deposit and delineate ore bodies in zones 1 and 3.
 At Perevalnoye, exploration continued by in-fill drilling from the underground with trial ore stoping expected to lead to a material upgrade in resources at the deposit.
Omolon hub
 At Omolon, the completion of initial ore reserve estimates for new veins at Birkachan and Sopka open pit have largely offset reserve depletion in 2017.
 At Irbychan, exploration has previously focused on in-fill drilling at the Central and Northern ore zones. In 2018, the focus will shift to the Eastern zone.
 At Yolochka, 6.7 km of in-fill drilling was completed at the Central and Southern zones. Both zones remain open at depth.The Company also completed prospecting drilling at the flanks and the Promezhutochnaya zone.
 At Nevenrekan, exploration activities were previously focused on in-fill drilling at zone 2, with several high-grade intercepts confirming potential for profitable underground mining. As a result of prospecting drilling at orezone 1 new high-grade ore zones were discovered. In 2018, the Company plans to complete regular drilling at zones 1 and 5 as well as surveying activities at the flanks of the deposit.
Okhotsk hub
 48.0 km of exploration drilling has been completed in the Okhotsk region in 2017, a 70% increase compared to the previous year.
 At Levoberezhny (35 km from Svetloye), in-fill drilling confirmed the continuity of mineralisation and the option of using heap leaching to extract gold.
 12.8 km were drilled at Kundumi within the Central and Western ore zones resulted in a material increase in mineral resources. In 2018, the Company plans to undertake an additional 15 km of core drilling targeting both resource-to-reserve conversion and further resource growth.
 At Khotorchan and Gyrbykan, multiple new veins have been discovered during the year. In 2018, Polymetal plans to complete resource definition drilling and start open-pit mining on previously discovered veins.
Albazino
 Ore reserves increased by 12% year-on-year to 2.3 Moz GE, driven by the initial ore reserve estimate for Farida open pit (169 Koz GE) and Anfisa underground (47 Koz GE).
 In 2018, exploration will focus on delineating resources and estimating mineralresources at new ore zones, namely Tatiana and Kuyan.
Mayskoye
 610 Koz of gold were added to mineral resources following a 33 km drilling campaign. This brings total additional mineral resources for Mayskoye to 3.8 Moz of gold, up 19% year-on-year.
Voro hub
 In 2017, the Company increased Voro's mineral resources by 28% to 1.0Moz GE with the discovery of a new gold deposit at Pesherny (30 km from the CIP plant). An initial resource estimate comprised 449 Koz of gold at an average grade of 6.7g/t. In 2018, we plan to continue exploring this highly promising property that may significantly extend the life-of-mine and halt production decline at Voro.
 At Saum, mineral resource grew to reach 67.4 Kt of copper equivalent at an average grade of 2.9%. In 2018, we plan to complete the feasibility study for the property.
 At Voro open pit, exploration focused on the assessment of mineralisation below the ultimate pit floor. Mineral resources grew by 86Koz of goldequivalent at 2.6 g/t. The results suggest feasibility of underground mining after open pit mining is completed. Ore bodies are open along strike with drilling to continue in 2018.
Varvara hub
 At Komar, 30 km of exploration drilling at the Central and Southern zones was completed in 2017, driving a significant ore reserves increase of 524 Koz of gold (+49%). In 2018, exploration activities are set to continue at the northern and south-eastern parts of the deposit.
 12.1 km of drilling was completed at Elevator - a new prospect that is situated 8 km northeast of the Komar deposit. New thick ore bodies were discovered below the previously mined oxidized ore. Exploration will continue in 2018.
Kapan
 At Kapan, Polymetal prepared an initial JORC-compliant reserve estimate asat January 1, 2018, which comprises 558KozGEat anaverage grade of 4.3g/t. Additional mineral resources were estimated at 1,632 Koz GE at an average grade of 6.1g/t.
 At Lichkvaz (70 km from Kapan) an initial JORC-compliant reserve estimate was prepared by Polymetal and comprised 134 Koz GE at 3.9 g/t, while additional mineral resources amounted to 257 Koz GE at 5.0 g/t.
Kyzyl
 At Bakyrchik, 49 holes totaling 8.3 km were drilled at the eastern flank of the deposit with results indicating strong potential to increase open pit reserves. In-fill drilling leading to an updated ore reserve estimate is planned for 2018.
Nezhda
 33.7 km of exploration drilling was completed. The drilling campaign resulted in an initial JORC-compliant ore reserve estimate for open pit mining at ore zone 1 that comprised 15.5 Mt of ore with an average grade of 4.0 g/t GE containing 2.0 Moz of GE (350 Koz pro rata to Polymetal's current ownership of 17.7%).
 Additional mineral resources for Nezhda were estimated at 55.9 Mt of ore with an average grade of GE 5.0 g/t, containing 8.9 Moz of GE (1,576 Koz of GE pro rata to Polymetal's current ownership of 17.7%).
 In 2018, Polymetal will focus on upgrading the open-pittable resources at the southern flank of ore zone 1 and producing the initial reserve estimate for underground mining at ore zone 56.
Prognoz
 In 2017, Polymetal acquired a 5% indirect interest in Prognoz - the largest undeveloped primary silver deposit in Russia with JORC mineral resources of 292 Moz at 586 g/t (estimated by Micon). During the year, Polymetal undertook 37.3 km of exploration drilling at the deposit to confirm the resources of Main and Swamp ore zones. The results of the drilling campaign have largely confirmed the parameters of mineralisation at the deposit.
 In 2018, Polymetal intends to expand the scope of drilling at the property to include South, Quiet and Spring ore zones as well as trace Main and Swamp ore zones along strike and down dip. The Company plans to increase its stake to 50% with the deal set to close in H1 2018.
Viksha
 39.6 km of exploration drilling was completed at the Viksha PGM deposit in Karelia with a view to improve the understanding of geological controls and enable a future reserve estimate. An updated Mineral Resources estimate is expected in Q3 2018.


Ore Reserves as at 1 January 2018 (1)

Tonnage

Grade

Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Proved











Standalone Mines
6,690




4.8
1,035
-
-
-
1,035
Albazino
4,570
3.9
-
-
-
3.9
571
-
-
-
571
Mayskoye
2,120
6.8
-
-
-
6.8
465
-
-
-
465












Dukat hub
7,040




4.0
153
61,391
-
-
907
Dukat
4,770
0.5
251
-
-
3.4
72
38,598
-
-
527
Lunnoye
1,760
1.3
286
-
-
5.1
72
16,194
-
-
288
Goltsovoye
160
-
335
-
-
4.5
-
1,714
-
-
23
Arylakh
350
0.7
435
-
-
6.2
8
4,884
-
-
70












Varvara hub
20,800




1.3
843
-
8.4
-
896
Varvara (3)
12,300
1.0
-
0.5
-
1.1
379
-
8.4
-
431
Komar
3,540
1.4
-
-
-
1.4
165
-
-
-
165
Maminskoye (4)
4,810
1.9
-
-
-
1.9
295
-
-
-
295
Dolinnoye
150
1.1
-
-
-
1.1
5
-
-
-
5












Omolon hub
9,250




2.7
696
11,240
-
-
804
Birkachan
3,910
2.0
6
-
-
2.1
255
777
-
-
263
Sopka Kvartsevaya
3,060
1.6
68
-
-
2.3
159
6,648
-
-
220
Oroch (7)
470
3.7
157
-
-
5.5
56
2,367
-
-
83
Olcha
50
8.9
16
-
-
9.1
14
26
-
-
15
Dalneye (8)
1,090
1.7
28
-
-
1.9
59
991
-
-
67
Tsokol Kubaka
290
6.2
6
-
-
6.3
57
56
-
-
57
Burgali (9)
380
7.9
31
-
-
8.2
95
375
-
-
98












Voro hub
10,210




1.8
575
995
-
-
585
Voro
10,210
1.8
3
-
-
1.8
575
995
-
-
585












Okhotsk hub
3,120




3.1
291
2,401
-
-
313
Svetloye
2,190
2.8
3
-
-
2.8
195
217
-
-
195
Avlayakan
150
13.7
117
-
-
15.2
68
576
-
-
75
Khakanja (11)
780
1.1
64
-
-
1.7
28
1,608
-
-
43












Armenia
750




4.4
75
714
2.7
5.3
107
Kapan (12)
220
2.9
42
0.5
2.5
5.8
20
289
1.1
5.3
40
Lichkvaz (13)
530
3.2
25
0.3
-
4.0
55
425
1.6
-
67












Development and exploration projects
3,150




3.6
361
1,099
-
-
368
Nezhda
1,350
4.0
25
-
-
4.2
174
1,099
-
-
182
Veduga (14)
220
2.3
-
-
-
2.3
17
-
-
-
17
Kutyn (17)
1,580
3.3
-
-
-
3.3
169
-
-
-
169
Total Proved
61,010




2.6
4,028
77,841
11.1
5.3
5,015
Probable











Standalone Mines
15,090




5.4
2,640
-
-
-
2,640
Albazino
10,560
5.0
-
-
-
5.0
1,701
-
-
-
1,701
Mayskoye
4,530
6.4
-
-
-
6.4
939
-
-
-
939













Tonnage
Grade
Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Dukat hub
6,540




4.7
132
70,197
-
-
982
Dukat
5,050
0.5
337
-
-
4.5
83
54,694
-
-
727
Lunnoye
750
1.7
268
-
-
5.3
42
6,506
-
-
129
Goltsovoye
170
-
307
-
-
4.1
-
1,662
-
-
22
Arylakh
220
0.9
348
-
-
5.3
6
2,476
-
-
38
Perevalnoye (2)
350
 -
428
-
-
5.9
-
4,860
-
-
67












Varvara hub
37,870




1.9
2,145
359
34.0
-
2,357
Varvara (3)
5,370
1.1
-
0.6
-
1.8
196
-
19.6
-
317
Komar
19,300
1.8
-
-
-
1.8
1,135
-
-
-
1,135
Maminskoye (4)
9,890
1.9
-
-
-
1.9
618
-
-
-
618
Dolinnoye (5)
2,420
2.5
-
-
-
2.5
193
-
-
-
193
Tarutin (6)
890
0.1
13
1.6
-
3.3
3
359
14.4
-
93












Omolon hub
1,910




8.3
491
2,000
-
-
512
Birkachan
1,210
8.8
24
-
-
9.1
339
937
-
-
349
Sopka Kvartsevaya
120
6.2
193
-
-
8.3
24
745
-
-
32
Olcha
230
8.8
15
-
-
9.0
65
113
-
-
67
Tsokol Kubaka
190
6.2
10
-
-
6.3
39
61
-
-
39
Burgali (9)
160
4.7
28
-
-
5.0
24
144
-
-
25












Voro hub
450




13.0
80
1,074
18.9
18.1
188
Voro
130
2.3
5
-
-
2.4
10
19
-
-
10
North Kaluga (10)
320
6.7
101
5.8
5.6
17.1
70
1,056
18.9
18.1
179












Okhotsk hub
3,500




3.5
385
594
-
-
388
Svetloye
3,440
3.3
4
-
-
3.3
360
430
-
-
361
Avlayakan
60
12.9
83
-
-
13.9
26
164
-
-
27












Armenia
4,390




4.1
311
5,220
17.7
62.4
585
Kapan (12)
3,850
2.1
40
0.4
1.6
4.2
254
4,905
16.3
62.4
518
Lichkvaz (13)
540
3.2
18
0.2
-
3.8
57
315
1.4
-
67












Development and exploration projects
36,200




7.1
8,210
666
-
-
8,214
Kyzyl project (Bakyrchik) (14)
29,150
7.7
-
-
-
7.7
7,254
-
-
-
7,254
Nezhda (15)
1,380
3.7
15
-
-
3.8
164
666
-
-
168
Veduga (16)
3,600
5.0
-
-
-
5.0
575
-
-
-
575
Kutyn (17)
2,070
3.3
-
-
-
3.3
217
-
-
-
217
Total Probable
105,950




4.7
14,393
80,110
70.5
80.5
15,867












Proved + Probable











Standalone Mines
21,780




5.2
3,675
-
-
-
3,675
Albazino
15,130
4.7
-
-
-
4.7
2,272
-
-
-
2,272
Mayskoye
6,650
6.6
-
-
-
6.6
1,404
-
-
-
1,404












Dukat hub
13,580




4.3
285
131,588
-
-
1,890
Dukat
9,820
0.5
295
-
-
4.0
156
93,293
-
-
1,253
Lunnoye
2,510
1.4
281
-
-
5.2
114
22,700
-
-
417
Goltsovoye
330
-
321
-
-
4.3
-
3,376
-
-
45
Arylakh
570
0.8
401
-
-
5.9
15
7,360
-
-
108

Tonnage
Grade
Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Perevalnoye (2)
350
-
428
-
-
5.9
-
4,860
-
-
67












Varvara hub
58,670




1.7
2,989
359
42.4
-
3,253
Varvara (3)
17,670
1.0
-
0.6
-
1.3
575
-
28.0
-
748
Komar
22,840
1.8
-
-
-
1.8
1,300
-
-
-
1,300
Maminskoye (4)
14,700
1.9
-
-
-
1.9
913
-
-
-
913
Dolinnoye (5)
2,570
2.4
-
-
-
2.4
198
-
-
-
198
Tarutin (6)
890
0.1
13
1.6
-
3.3
3
359
14.4
-
93












Omolon hub
11,160




3.7
1,186
13,240
-
-
1,316
Birkachan
5,120
3.6
10
-
-
3.7
594
1,714
-
-
611
Sopka Kvartsevaya
3,180
1.8
72
-
-
2.5
183
7,393
-
-
253
Oroch (7)
470
3.7
157
-
-
5.5
56
2,367
-
-
83
Olcha
280
8.8
15
-
-
9.0
80
139
-
-
81
Dalneye (8)
1,090
1.7
28
-
-
1.9
59
991
-
-
67
Tsokol Kubaka
480
6.2
8
-
-
6.3
95
117
-
-
97
Burgali (9)
540
7.0
30
-
-
7.2
119
519
-
-
123












Voro hub
10,660




2.3
655
2,070
18.9
18.1
774
Voro
10,340
1.8
3
-
-
1.8
585
1,014
-
-
595
North Kaluga (10)
320
6.7
101
5.8
5.6
17.1
70
1,056
18.9
18.1
179












Okhotsk hub
6,620




3.3
676
2,995
-
-
702
Svetloye
5,630
3.1
4
-
-
3.1
555
647
-
-
556
Avlayakan
210
13.5
107
-
-
14.8
93
740
-
-
102
Khakanja (11)
780
1.1
64
-
-
1.7
28
1,608
-
-
43












Armenia
5,140




4.2
385
5,934
20.3
67.7
692
Kapan (12)
4,070
2.1
40
0.4
1.7
4.3
274
5,194
17.4
67.7
558
Lichkvaz (13)
1,070
3.2
21
0.3
-
3.9
111
740
2.9
-
134












Development and exploration projects
39,350




6.8
8,571
1,764
-
-
8,582
Kyzyl project (Bakyrchik) (13)
29,150
7.7
-
-
-
7.7
7,254
-
-
-
7,254
Nezhda (15)
2,730
3.8
20
-
-
4.0
338
1,764
-
-
350
Veduga (16)
3,820
4.8
-
-
-
4.8
592
-
-
-
592
Kutyn (17)
3,650
3.3
-
-
-
3.3
386
-
-
-
386
Total Probable
166,960




3.9
18,422
157,951
81.6
85.8
20,883
1) Ore Reserves in accordance with the JORC Code (2012). Discrepancies in calculations are due to rounding.
2) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Ag = US$15/oz. and Pb = US$1,700/t. Revised estimate was not performed due to lack of material changes.
3) Cu grade in Ore Reserves only represents average grade in flotation feed. Ore Reserves for flotation: 1.8 Mt Proved and 3.2 Mt Probable.
4) Initial estimate prepared by Polymetal as at 01.01.2014. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
5) Initial estimate prepared by CSA as at 28.07.2016. Price: Au = US$1,100/oz. Revised estimate was prepared by Polymetal as at 01.01.2018 (accounts only for depletion and change in ownership). Ore Reserves are presented in accordance with the Company's ownership of 50%.
6) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz and Cu = US$5,000/t. Revised estimate was prepared by Polymetal as at 01.01.2018 (accounts for change in ownership)
7) Stockpiled Ore Reserves.
8) Stockpiled Ore Reserves
9) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz and Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
10) Initial estimate prepared by Polymetal as at 01.07.2014. Price: Au = US$1,300/oz, Ag = US$20/oz, Cu = US$7,000/t and Zn = US$1,700/t. Revised estimate was not performed due to lack of material changes.
11) Stockpiled Ore Reserves.
12) Initial estimate prepared by Polymetal as at 01.01.2018.
13) Initial estimate prepared by Polymetal as at 01.01.2018.
14) Initial estimate prepared by RPA Inc. as at 01.01.2015. Price: Au = US$1,200/oz. Revised estimate was not performed due to lack of material changes.
15) Initial estimate prepared by Polymetal as at 01.07.2017. Ore Reserves are presented in accordance with the Company's ownership equal to 17.66%. Revised estimate was not performed due to lack of material changes.
16) Ore Reserves are presented in accordance with the Company's ownership equal to 42.65%.
17) Initial estimate prepared by Snowden as at 01.01.2015. Price: Au= US$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 2018 (1)
Tonnage

Grade

Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Measured











Standalone Mines
3,740




5.1
616
-
-
-
616
Albazino
2,540
1.7
-
-
-
1.7
143
-
-
-
143
Mayskoye
1,200
12.2
-
-
-
12.2
473
-
-
-
473












Dukat hub
1,470




6.7
58
20,661
-
-
316
Dukat
740
0.9
441
-
-
6.0
21
10,503
-
-
144
Lunnoye
610
1.8
327
-
-
6.2
36
6,413
-
-
122
Goltsovoye
100
-
976
-
-
13.0
-
3,285
-
-
44
Arylakh
20
1.1
626
-
-
9.0
1
458
-
-
7












Varvara hub
11,170




1.2
268
-
23.6
-
414
Varvara (4)
10,150
0.7
-
0.4
-
1.1
222
-
23.6
-
368
Komar
40
1.5
-
-
-
1.5
2
-
-
-
2
Maminskoye (5)
980
1.4
-
-
-
1.4
44
-
-
-
44












Omolon hub
950




3.3
86
1,421
-
-
101
Birkachan
40
12.7
39
-
-
13.1
14
45
-
-
15
Sopka Kvartsevaya
210
1.5
73
-
-
2.2
10
492
-
-
14
Oroch (8)
480
1.2
51
-
-
1.8
19
795
-
-
28
Olcha
150
4.1
13
-
-
4.2
19
65
-
-
20
Tsokol-Kubaka
70
10.4
11
-
-
10.5
23
24
-
-
23












Voro hub
690




2.6
56
106
-
-
57
Voro
690
2.5
5
-
-
2.6
56
106
-
-
57












Okhotsk hub
670




3.5
68
696
-
-
75
Svetloye
230
1.4
2
-
-
1.4
11
14
-
-
11
Avlayakan
130
10.0
84
-
-
11.0
42
355
-
-
46
Ozerny (15)
270
1.7
26
-
-
1.9
14
226
-
-
17
Khakanja (16)
40
0.7
73
-
-
1.4
1
101
-
-
2












Armenia
410




4.6
48
397
1.3
0.6
60
Kapan
20
5.2
74
0.9
4.1
10.0
3
38
0.2
0.6
5
Lichkvaz
390
3.5
28
0.3
-
4.3
45
359
1.2
-
55
Development and exploration projects
1,130




3.8
136
87
-
-
136
Nezhda (20)
210
5.4
13
-
-
5.4
37
87
-
-
37
Veduga (21)
180
0.4
-
-
-
0.4
3
-
-
-
3
Kutyn (22)
740
4.1
-
-
-
4.1
97
-
-
-
97
Total Measured
20,230




2.7
1,335
23,367
24.9
0.6
1,776
Indicated











Standalone Mines
2,240




7.0
504
-
-
-
504
Albazino
1,520
5.2
-
-
-
5.2
253
-
-
-
253
Mayskoye
720
10.9
-
-
-
10.9
251
-
-
-
251












Dukat hub
1,070




12.4
77
27,457
-
-
425
Dukat
390
0.6
383
-
-
5.1
8
4,814
-
-
64





Tonnage
Grade
Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Lunnoye
70
2.4
234
-
-
5.5
6
555
-
-
13
Goltsovoye
130
-
750
-
-
10.0
-
3,251
-
-
43
Arylakh
10
1.5
502
-
-
7.9
1
226
-
-
4
Primorskoye (3)
470
4.2
1,238
-
-
20.0
62
18,610
-
-
301












Varvara hub
16,150




1.7
726
120
24.2
-
877
Varvara (4)
10,050
1.2
-
0.5
-
1.5
398
-
16.7
-
501
Komar
3,500
2.0
-
-
-
2.0
220
-
-
-
220
Maminskoye (5)
1,150
1.5
-
-
-
1.5
55
-
-
-
55
Dolinnoye (6)
850
1.9
-
-
-
1.9
52
-
-
-
52
Tarutin (7)
600
0.1
6
1.3
-
2.5
2
120
7.6
-
49












Omolon hub
570




10.3
147
3,782
-
-
189
Birkachan
90
10.4
21
-
-
10.6
28
56
-
-
29
Sopka Kvartsevaya
70
4.7
187
-
-
6.7
11
430
-
-
15
Olcha
70
8.1
20
-
-
8.3
18
45
-
-
19
Tsokol-Kubaka
30
5.9
9
-
-
6.0
6
9
-
-
6
Irbychan (10)
240
8.9
189
-
-
11.3
68
1,439
-
-
86
Nevenrekan (12)
70
7.1
784
-
-
15.1
16
1,803
-
-
35












Voro hub
3,320




4.4
335
2,067
16.1
29.1
471
Voro
340
2.5
5
-
-
2.6
28
51
-
-
28
Tamunier
2,190
3.4
10
-
-
3.5
242
690
-
-
245
Saum (13)
790
2.5
52
2.0
3.7
7.8
65
1,325
16.1
29.1
197












Okhotsk hub
720




5.3
119
261
-
-
122
Svetloye
530
2.0
3
-
-
2.0
34
44
-
-
34
Avlayakan
20
16.9
47
-
-
17.4
10
27
-
-
10
Maimakan-Kundumi
170
13.8
35
-
-
14.2
76
190
-
-
78












Armenia
650




5.2
69
811
3.1
7.6
109
Kapan
320
2.9
57
0.7
2.4
6.1
30
588
2.1
7.6
63
Lichkvaz
330
3.7
21
0.3
-
4.4
39
222
1.0
-
47












Development and exploration projects
5,930




5.3
1,000
597
-
-
1,004
Kyzyl project (Bakyrchik) (19)
2,740
6.2
-
-
-
6.2
545
-
-
-
545
Nezhda (20)
1,120
4.9
17
-
-
5.0
176
597
-
-
179
Kutyn (22)
2,070
4.2
-
-
-
4.2
279
-
-
-
279
Total Indicated
30,650




3.8
2,977
35,094
43.4
36.7
3,701












Measured + Indicated










Standalone Mines
5,980




5.8
1,120
-
-
-
1,120
Albazino
4,060
3.0
-
-
-
3.0
396
-
-
-
396
Mayskoye
1,920
11.7
-
-
-
11.7
724
-
-
-
724












Dukat hub
2,540




9.1
134
48,118
-
-
742
Dukat
1,130
0.8
421
-
-
5.7
28
15,317
-
-
209
Lunnoye
680
1.9
317
-
-
6.1
42
6,969
-
-
135
Goltsovoye
230
-
849
-
-
11.3
-
6,537
-
-
87
Arylakh
30
1.2
579
-
-
8.6
1
685
-
-
10

Tonnage
Grade
Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Primorskoye (3)
470
4.2
1,238
-
-
20.0
62
18,610
-
-
301












Varvara hub
27,320




1.5
994
120
47.8
-
1,291
Varvara (4)
20,200
1.0
-
0.4
-
1.3
620
-
40.2
-
868
Komar
3,540
2.0
-
-
-
2.0
222
-
-
-
222
Maminskoye (5)
2,130
1.4
-
-
-
1.4
99
-
-
-
99
Dolinnoye (6)
850
1.9
-
-
-
1.9
52
-
-
-
52
Tarutin (7)
600
0.1
6.2
1.3
-
2.5
2
120
7.6
-
49












Omolon hub
1,520




5.9
233
5,203
-
-
290
Birkachan
130
11.1
26
-
-
11.4
43
101
-
-
44
Sopka Kvartsevaya
280
2.3
103
-
-
3.3
21
922
-
-
30
Oroch (8)
480
1.2
51
-
-
1.8
19
795
-
-
28
Olcha
220
5.3
16
-
-
5.5
38
110
-
-
39
Tsokol-Kubaka
100
9.1
10
-
-
9.2
29
33
-
-
29
Irbychan (10)
240
8.9
189
-
-
11.3
68
1,439
-
-
86
Nevenrekan (12)
70
7.1
784
-
-
15.1
16
1,803
-
-
35












Voro hub
4,010




4.1
391
2,173
16.1
29.1
528
Voro
1,030
2.5
5
-
-
2.6
84
157
-
-
86
Tamunier
2,190
3.4
10
-
-
3.5
242
690
-
-
245
Saum (13)
790
2.5
52
2.0
3.7
7.8
65
1,325
16.1
29.1
197












Okhotsk hub
1,390




4.4
187
957
-
-
197
Svetloye
760
1.8
2
-
-
1.8
44
58
-
-
44
Avlayakan
150
10.8
80
-
-
11.8
52
381
-
-
56
Ozerny (15)
270
1.7
26
-
-
1.9
14
226
-
-
17
Maimakan-Kundumi
170
13.8
35
-
-
14.2
76
190
-
-
78
Khakanja (16)
40
0.7
73
-
-
1.4
1
101
-
-
2












Armenia
1,060




5.0
117
1,208
4.4
8.2
169
Kapan
340
3.0
58
0.7
2.5
6.3
33
626
2.2
8.2
68
Lichkvaz
720
3.6
25
0.3
-
4.4
84
581
2.2
-
102












Development and exploration projects
7,060




5.0
1,135
684
-
-
1,140
Kyzyl project (Bakyrchik) (19)
2,740
6.2
-
-
-
6.2
545
-
-
-
545
Nezhda (20)
1,330
5.0
16
-
-
5.1
212
684
-
-
217
Veduga (21)
180
0.4
-
-
-
0.4
3
-
-
-
3
Kutyn (22)
2,810
4.2
-
-
-
4.2
376
-
-
-
376
Total Measured + Indicated
50,880




3.3
4,312
58,461
68.3
37.4
5,477












Inferred











Standalone Mines
13,690




9.0
3,964
-
-
-
3,964
Albazino
Mayskoye
4,240
9,450
6.1
10.3
-
-
-
-

6.1
10.3
839
3,125
-
-
-
-

839
3,125












Dukat hub
1,240




9.0
47
25,161
-
-
357
Dukat
690
1.3
705
-
-
9.6
29
15,723
-
-
214
Lunnoye
290
1.6
430
-
-
7.3
15
3,971
-
-
68
Goltsovoye
110
-
772
-
-
10.3
-
2,722
-
-
36













Tonnage
Grade
Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Arylakh
100
0.6
558
-
-
7.7
2
1,737
-
-
24
Perevalnoye (2)
20
-
564
-
-
7.7
-
379
-
-
5
Primorskoye (3)
30
1.8
787
-
-
11.8
1
629
-
-
9












Varvara hub
15,920




2.2
967
167
22.0
-
1,104
Varvara (4)
8,460
1.4
-
0.7
-
1.7
374
-
14.2
-
462
Komar (5)
2,020
2.4
-
-
-
2.4
159
-
-
-
159
Dolinnoye (6)
4,990
2.7
-
-
-
2.7
432
-
-
-
432
Tarutin (7)
450
0.1
11
1.7
-
3.5
2
167
7.9
-
52












Omolon hub
690




11.8
221
3,928
-
-
262
Sopka Kvartsevaya
40
2.3
90
-
-
3.3
3
123
-
-
4
Olcha
140
11.0
39
-
-
11.4
48
169
-
-
50
Tsokol Kubaka
80
8.0
16
-
-
8.2
20
41
-
-
21
Burgali (9)
50
11.9
15
-
-
12.0
21
26
-
-
21
Irbychan (10)
20
19.3
265
-
-
22.6
10
141
-
-
12
Yolochka (11)
240
11.1
10
-
-
11.2
85
73
-
-
86
Nevenrekan (12)
120
8.6
861
-
-
17.3
33
3,355
-
-
68












Voro hub
2,610




6.1
501
123
1.0
1.4
509
Tamunier
480
3.2
4
-
-
3.3
50
69
-
-
50
Saum (13)
50
1.4
33
1.8
2.6
5.7
2
55
1.0
1.4
10
Pesherny (14)
2,080
6.7
-
-
-
6.7
449
-
-
-
449












Okhotsk hub
3,102




4.8
466
1,392
-
-
482
Svetloye
10
6.8
4
-
-
6.8
3
2
-
-
3
Avlayakan
10
28.6
84
-
-
29.6
8
24
-
-
9
Levoberezhny (17)
2,800
4.0
13
-
-
4.2
365
1,208
-
-
378
Kirankan (18)
142
6.5
8
-
-
6.7
30
39
-
-
30
Maimakan-Kundumi
140
13.7
27
-
-
14.0
60
119
-
-
62












Armenia
8,900




6.0
866
17,063
56.6
183.0
1,719
Kapan
8,020
2.9
62
0.7
2.3
6.1
739
16,012
53.4
183.0
1,564
Lichkvaz
880
4.5
37
0.4
-
5.5
128
1,052
3.2
-
155












Development and exploration projects
22,980




5.9
4,337
2,845
-
-
4,357
Kyzyl project (Bakyrchik) (19)
11,420
7.0
-
-
-
7.0
2,562
-
-
-
2,562
Nezhda (20)
8,580
4.9
10
-
-
4.9
1,340
2,845
-
-
1,360
Veduga (21)
870
5.8
-
-
-
5.8
162
-
-
-
162
Kutyn (22)
2,110
4.0
-
-
-
4.0
273
-
-
-
273
Total Inferred
69,132




5.7
11,371
50,680
79.6
184.4
12,754












Measured + Indicated + Inferred







Standalone Mines
19,670




8.0
5,084
-
-
-
5,084
Albazino
Mayskoye
8,300
11,370
4.6
10.5
-
-
-
-

4.6
10.5
1,236
3,849
-
-
-
-
-
1,236
3,849
Dukat hub
3,780




9.0
182
73,278
-
-
1,099
Dukat
1,820
1.0
529
-
-
7.2
58
31,041
-
-
423
Lunnoye
970
1.8
350
-
-
6.5
57
10,940
-
-
203
Goltsovoye
340
-
825
-
-
11.0
-
9,259
-
-
123

Tonnage
Grade
Content

Kt
Au, g/t
Ag, g/t
Cu, %
Zn, %
GE, g/t
Au, Koz
Ag, Koz
Cu, Kt
Zn, Kt
GE, Koz
Arylakh
130
0.8
563
-
-
7.9
3
2,421
-
-
34
Perevalnoye (2)
20
-
564
-
-
7.7
-
379
-
-
5
Primorskoye (3)
500
4.0
1,216
-
-
19.6
64
19,239
-
-
311












Varvara hub
43,240




1.7
1,961
287
69.8
-
2,395
Varvara (4)
28,660
1.1
-
0.5
-
1.4
994
-
54.4
-
1,330
Komar
5,560
2.1
-
-
-
2.1
381
-
-
-
381
Maminskoye (5)
2,130
1.4
-
-
-
1.4
99
-
-
-
99
Dolinnoye (6)
5,840
2.6
-
-
-
2.6
484
-
-
-
484
Tarutin (7)
1,050
0.1
8
1.5
-
2.9
4
287
15.4
-
101












Omolon hub
2,210




7.8
454
9,131
-
-
552
Birkachan
130
11.1
26
-
-
11.4
43
101
-
-
44
Sopka Kvartsevaya
320
2.3
101
-
-
3.3
24
1,045
-
-
34
Oroch (8)
480
1.2
51
-
-
1.8
19
795
-
-
28
Olcha
360
7.5
24
-
-
7.8
86
279
-
-
89
Tsokol Kubaka
180
8.6
13
-
-
8.7
49
74
-
-
50
Burgali (9)
50
11.9
15
-
-
12.0
21
26
-
-
21
Irbychan (10)
260
9.6
194
-
-
12.0
78
1,580
-
-
98
Yolochka (11)
240
11.1
10
-
-
11.2
85
73
-
-
86
Nevenrekan (12)
190
8.0
832
-
-
16.5
50
5,157
-
-
102












Voro hub
6,620




4.9
892
2,296
17.1
30.5
1,037
Voro
1,030
2.5
5
-
-
2.6
84
157
-
-
86
Tamunier
2,670
3.4
9
-
-
3.4
292
759
-
-
296
Saum (13)
840
2.5
51
2.0
3.6
7.6
67
1,380
17.1
30.5
207
Pesherny (14)
2,080
6.7
-
-
-
6.7
449
-
-
-
449












Okhotsk hub
4,492




4.7
653
2,349
-
-
679
Svetloye
770
1.9
2
-
-
1.9
47
60
-
-
47
Avlayakan
160
11.9
80
-
-
12.8
60
406
-
-
65
Ozerny (15)
270
1.7
26
-
-
1.9
14
226
-
-
17
Khakanja (16)
40
0.7
73
-
-
1.4
1
101
-
-
2
Levoberezhny (17)
2,800
4.0
13
-
-
4.2
365
1,208
-
-
378
Kirankan (18)
142
6.5
8
-
-
6.7
30
39
-
-
30
Maimakan-Kundumi
310
13.8
31
-
-
14.1
136
310
-
-
140












Armenia
9,960




5.9
983
18,271
61.0
191.3
1,889
Kapan
8,360
2.9
62
0.7
2.3
6.1
771
16,638
55.6
191.3
1,632
Lichkvaz
1,600
4.1
32
0.3
-
5.0
212
1,633
5.4
-
257












Development and exploration projects
30,040




5.7
5,473
3,529
-
-
5,497
Kyzyl project (Bakyrchik) (19)
14,160
6.8
-
-
-
6.8
3,107
-
-
-
3,107
Nezhda (20)
9,910
4.9
11
-
-
5.0
1,552
3,529
-
-
1,576
Veduga (21)
1,050
4.9
-
-
-
4.9
165
-
-
-
165
Kutyn (22)
4,920
4.1
-
-
-
4.1
649
-
-
-
649
Total Measured + Indicated + Inferred
120,012




4.7
15,682
109,141
147.9
221.8
18,231
1) ineral Resources are reported in accordance with the JORC Code (2012) and are additional to Ore Reserves. Discrepancies in calculations are due to rounding.
2) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Ag = US$15/oz, Pb = US$1,700/t. A revised estimate was not performed due to a lack of material changes.
3) Estimate prepared by CSA Global Pty Ltd as at 01.01.2017. Price: Au = US$1,250/oz, Ag = US$16 /oz.Revised estimate was not performed due to lack of material changes.
4) 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 4.7 and 6.8 Mt of ore respectively).
5) Initial estimate prepared by Polymetal as at 01.01.2014. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
6) Initial estimate prepared by CSA as at 28.07.2016. Price: Au= US$1,100/oz. Revised estimate prepared by Polymetal as at 01.01.2018 (accounts only for depletion and change in ownership). ineral Resources are presented in accordance with the Company's ownership equal to 50%.
7) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au= US$1,100/oz, Ag = US$15/oz, Cu = US$5,000/t. Revised estimate was prepared by Polymetal as at 01.01.2018 (accounts only for change in ownership).
8) Stockpiled Ore Reserves. 
9) Estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
10) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
11) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
12) Initial estimate prepared by Polymetal as at 01.01.2016. Price: Au = US$1,100/oz, Ag = US$15/oz. Revised estimate was not performed due to lack of material changes.
13) Initial estimate prepared by Polymetal as at01.01.2017. Price: Au = US$1,200/oz, Ag = US$16/oz, Cu = US$4,500/t and Zn = US$1,900/t. Ore Reserves are presented in accordance with the Company's ownership equal to80%. Revised estimate was not performed due to lack of material changes.
14) Initial estimate prepared by Polymetal as at 01.01.2018.
15) Stockpiled Ore Reserves.
16) Stockpiled Ore Reserves.
17) Initial estimate prepared by Polymetal as at 01.01.2017.Revised estimate was not performed due to lack of material changes.
18) Estimate prepared by Snowden as at 01.07.2011. Price: Au = US$1,150/oz, Ag = US$18.5/oz. Revised estimate was not performed due to lack of material changes.
19) Estimate prepared by RPA Inc. as at 01.01.2015. Price: Au = US$1,200/oz. Revised estimate was not performed due to lack of material changes.
20) Initial estimate prepared by Polymetal as at01.07.2017. Mineral Resources are presented in accordance with Company's ownership equal to 17.66%. A revised estimate was not performed due to lack of material changes.
21) Mineral Resources are presented in accordance with Company's ownership equal to42.65%.
22) Initial estimate for open pit prepared by Snowden, for underground by CSA Global Pty Ltd as at 01.01.2015. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.


PGM Mineral Resources as at 1 January 2018 (1)
Tonnage
Grade
Content

Mt
Pd, g/t
Pt, g/t
Au, g/t
Cu,
%
PdEq(2), g/t
Pd, Moz
Pt, Moz
Au,
Moz
Cu,
Kt
PdEq, Moz
Indicated











Viksha project (3)











Viksha
27
0.6
0.2
0.1
0.10
1.4
0.5
0.1
0.1
29.6
1.3
Kenti
-
-
-
-
-
-
-
-
-
-
-
Shargi
-
-
-
-
-
-
-
-
-
-
-
Total Indicated
27
0.6
0.2
0.1
0.10
1.4
0.5
0.1
0.1
29.6
1.3












Inferred











Viksha project (3)











Viksha
52
0.6
0.2
0.1
0.09
1.3
1.0
0.3
0.2
49.5
2.3
Kenti
98
0.6
0.2
0.1
0.11
1.3
1.9
0.6
0.4
109.6
4.3
Shargi
36
0.6
0.2
0.1
0.08
1.3
0.7
0.2
0.1
31.7
1.5
Total Inferred
186
0.6
0.2
0.1
0.10
1.3
3.6
1.1
0.7
190.8
8.1












Indicated + Inferred









Viksha project (3)











Viksha
79
0.6
0.2
0.1
0.10
1.4
1.5
0.4
0.3
79.1
3.6
Kenti
98
0.6
0.2
0.1
0.11
1.3
1.9
0.6
0.4
109.6
4.3
Shargi
36
0.6
0.2
0.1
0.08
1.3
0.7
0.2
0.1
31.7
1.5
Total Indicated + Inferred
213
0.6
0.2
0.1
0.10
1.3
4.2
1.4
0.9
220.6
9.5
1) ineral 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) PdEq is calculated using the following formula: PdEq = Pd(g/t) + Pt(g/t) *1.57 + Au(g/t) * 1.61 + Cu(%) * 2.33.
3) Initial estimate prepared by AMC Consultants as at 01.03.2015 using COG (PdEq) = 0.50 g/t/. Price for Pd = 750 US$/oz, Pt = 1,180 US$/oz, Au = 1,200 US$/oz and Cu = 5,700 US$/oz per tonne. Revised estimate was not performed due to lack of material changes.
This estimate was prepared by employees of JSC Polymetal Management Company and JSC 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 JSC Polymetal Engineering and has more than 17 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 Department, MIMMM, with 17 years' relevant experience;
 Mining and Ore Reserves - Igor Epshteyn, Head of Mining Process Department, FIMMM, with 36 years' relevant experience;
 Concentration and Metals - Igor Agapov, Deputy Director of Science and Technology, MIMMM, with 20 years' relevant experience;
All the 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 their 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$1,200/oz;
Ag = US$16.0/oz;
Cu = US$5,500/t;
Zn = US$2,200/t.
Gold equivalent data is based on "Conversion ratios of metals into gold equivalent" provided in the Appendix below. Lead Ore Reserves and Mineral resources have not been assessed due to immateriality and are not included in the calculation of the gold equivalent.
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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
ReportingofMetalEquivalents
Gold equivalent conversion ratio
GE=Me/k
Where Me is the evaluated metal content (silver g/t, copper or zinc %)
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: 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)),
for copper or zinc k = 100*((Au price/31.1035) - (Au price/31.1035 - Treatment charge Au)*(Royalty Au)/100 - (Treatment change Au))*(Recovery Au))/(((Me price) - (Me price - Treatment charge Me)*(Royalty Me)/100 - (Treatment charge Me))*Recovery Me)).
where Royalty is the mineral extraction tax at applicable rate, recovery - the life-of-mine expected recovery of the respective metal in the processing technology applied.
Metal equivalent conversion ratios:
Deposit
Ore processing technology
k

Ag
Cu
Zn
Dukat
Gravitational flotation
85


Lunnoye
Cyanidation+Merrill Crowe process
75


Goltsovoye
Conventional flotation
75


Arylakh
Cyanidation+Merrill Crowe process
79


Perevalnoye
Conventional flotation
73


Primorskoye
Conventional flotation
78


Varvara
Powder ore with high copper content (1)

0.52

Primary ore with high copper content - conventional flotation

0.52

Tarutin
Primary ore - conventional flotation
94
0.53

Oxidised ore - conventional flotation
94
0.53

Birkachan
Cyanidation arbon-in-pulp
97


Heap leaching+arbon-in-colon
103


Sopka Kvartsevaya
Cyanidation+Merrill Crowe process
86


Heap leaching+Merrill Crowe process
141


Oroch
Cyanidation+Merrill Crowe process
88


Olcha
Cyanidation+Merrill Crowe process
87


Dalneye
Cyanidation+Merrill Crowe process
86


Heap leaching+Merrill Crowe process
125


Tsokol Kubaka
Cyanidation arbon-in-pulp
97


Burgali
Cyanidation+Merrill Crowe process
115


Irbychan
Cyanidation+Merrill Crowe process
80


Yolochka
Cyanidation arbon-in-pulp
91


Nevenrekan
Cyanidation+Merrill Crowe process
98


Voro
Heap leaching+Merrill Crowe process
393


Cyanidation arbon-in-pulp
97


North Kaluga
Conventional flotation
91
0.68
7.76
Tamunier
Conventional flotation
199


Saum
Conventional flotation
67
0.60
3.54
Svetloye
Heap leaching+Merrill Crowe process
479


Avlayakan
Cyanidation+Merrill Crowe process
83


Ozerny
Cyanidation+Merrill Crowe process
108


Khakanja
Cyanidation+Merrill Crowe process
105


Levoberezhny
Cyanidation arbon-in-pulp
88


Kirankan (2)
Cyanidation+Merrill Crowe process
60


Maimakan-Kundumi
Cyanidation+Merrill Crowe process
86


Kapan
Conventional flotation
83
0.60
1.70
Lichkvaz
Conventional flotation
81
0.70

Nezhda
Gravitational flotation
147


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