REG - Polymetal Int PLC - Reserves and Resources update as at 1 January 2016 <Origin Href="QuoteRef">POLYP.L</Origin> - Part 1

Polymetal International PKAnnouncement

24/03/2016 13:41

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
1.0
0.4
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 mfor 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 estimateof 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 resourceestimate 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 kozGE at 7.2 g/tGEat Burgali placed this property in line for open-pit mining in 2018 followed by a small-scale underground operation in 2019. Nofollow-upexplorationisplannedfor 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) 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) 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
Media
Investor Relations
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Jenny Payne
+44 20 3727 1000
Polymetal
Maxim Nazimok
Evgenia Onuschenko
Maryana Nesis
ir@polymetalinternational.com
+7 812 313 5964 (Russia)
+44 20 7016 9503 (UK)
Joint Corporate Brokers
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Sam McLennan
Richard Brown
+44 20 7425 8000
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+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
ReportingofMetalEquivalents
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 arbon-in-pulp
90
Heap leaching+arbon-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 arbon-in-pulp
90
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
219
Cyanidation arbon-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.

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