REG-Polymetal International plc Polymetal: Novopetrovsky initial Mineral Resource estimate

Polymetal International PKAnnouncement

24/01/2022 07:05

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   Polymetal International plc (POLY)
   Polymetal: Novopetrovsky initial Mineral Resource estimate

   24-Jan-2022 / 10:00 MSK
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   Release IMMEDIATE                                                       
   time    LSE, MOEX, AIX: POLY / ADR: AUCOY
   Date    24 January 2022

    

    

   Polymetal International plc

   Novopetrovsky initial Mineral Resource estimate

   Polymetal announces initial JORC-compliant  Mineral Resource estimate  for
   the Novopet  polymetallic  deposit (75%  ownership)  of 2.4  Moz  of  gold
   equivalent ("GE") at an average grade of 8.0 g/t GE.

   "Novopet is the first convincing proof for Polymetal's strategy of teaming
   up with  exploration  juniors.  The  asset  fits  our  long-term  strategy
   perfectly. It has high grade, low environmental footprint, and huge growth
   potential. It also more than doubles Polymetal's exposure to copper", said
   Vitaly Nesis, Group CEO of Polymetal.

   Highlights

     • The initial Mineral Resource estimate  as at 1 January 2022  comprises
       9.2 Mt of mineralised  material with an average  GE grade of 8.0  g/t.
       The value structure by metal is as follows 1  1 : 37% - copper, 35%  -
       gold, 23% - zinc, 6% - silver. Tabular mineralisation remains in  open
       in multiple directions.
     • Novopet is  a  VMS type  deposit  with primary  gold-copper-zinc  ores
       suitable  for  processing  by   conventional  flotation  and   gravity
       concentration. The  deposit  is amenable  to  conventional  mechanized
       underground mining.  Average mineralisation  depth is  395 m.  Average
       thickness is 19 m.

     • The resource estimate  is based  on data from  87 drill  holes with  a
       total length of 50.5 km, including 82 drill holes (46.8 km)  completed
       in 2020-2022, after Polymetal invested in the project.
     • Total exploration capital costs amounted  to US$ 8 million.  Inclusive
       of acquisition price, Polymetal invested approximately US$ 15 million,
       or US$ 6 per ounce of GE (adjusted for the Company's stake).
     • Polymetal's current share in the Novopet JV is 75%. The Company owns a
       7-year call option to buy out  the remaining 25% stake in the  project
       from the  JV partner  (Rosgeo), based  on JORC-compliant  Ore  Reserve
       estimate.

   MINERAL RESOURCE STATEMENT

   The Mineral Resource estimate is reported in accordance with the JORC Code
   (2012) and  was prepared  by Polymetal  as  at 1  January 2022  using  US$
   7,700/t copper, US$ 2,200/t zinc, US$  1,500/oz gold and US$ 20/oz  silver
   prices. A cut-off grade of 1.9 g/t of GE was applied.

   Novopetrovsky Mineral Resources 2  2 

                   Tonnage,   GE      Cu      Zn      Au      Ag       GE
                      Mt    grade,  grade,  grade,  grade,  grade,  content,
                              g/t      %       %      g/t     g/t      Moz
   Indicated         7.0      9.1     2.5     4.2     3.5     45       2.1
   (Underground)
   Inferred          2.2      4.3     1.4     1.5     1.4     14       0.3
   (Underground)
   Total Indicated   9.2      8.0     2.2     3.6     3.0     38       2.4
   +Inferred

   ABOUT Novopetrovsky

   The Novopet prospective area was identified in the 1980s in the course  of
   state-funded geological and geophysical studies. The area with potentially
   commercial  mineralisation  was  further  explored  in  2010-2017  by  the
   state-owned Bashkirgeology  and subsequently  Rosgeo. In  2020,  Polymetal
   acquired a 75% stake  in the Rosgeo's subsidiary  holding the license  for
   the Novopet area for US$7 million in cash.

   Novopet is located in the Khaibullinsky district of Bashkortostan, 110  km
   from the city of Sibay (population  of 60,000). The deposit is located  in
   an industrial  region with  low density  of agricultural  population.  The
   location has easy access  to grid-power and well-developed  transportation
   infrastructure.

   The deposit is confined to the volcanic structure of the Devonian age. VMS
   mineralisation occurs among  the quartz-sericite  altered rocks  developed
   within the volcanic-sedimentary formation.

   The main  value  of the  asset  stems from  a  deposit of  solid,  densely
   disseminated and vein-disseminated mineralisation developed as a result of
   the activity of "black smokers" on the slope of ancient seabed dome.

   A  sub-horizontal  mineralised  body   is  elongated  in  the   meridional
   direction, has a strike length of  750 m, a cross-strike width of  200-400
   m. The average thickness is 19 m with  swells of up to 43 m. The  internal
   structure is  very variable  in  terms of  mineral composition  and  metal
   grades. Upper  boundary of  mineralisation is  clear and  easily  visually
   identifiable,  while  the  lower  boundary  is  gradational  and  may   be
   determined only by sampling.

   Similarly to  comparable  deposits,  gravity and  flotation  flowsheet  is
   assumed to achieve  copper recoveries into  copper concentrate of  84-91%,
   zinc recoveries into  zinc concentrate  of 84-93%. Total  gold and  silver
   recoveries into gravity concentrate and  copper and zinc concentrates  are
   expected to be in  the range of 60-70%  and 65-75% respectively.  In-house
   metallurgical testing will take place in H2 of 2022.

   Mineralisation has been studied to a depth of 500 m and remains open along
   and across strike.  Northern and  southern flanks of  the Novopet  deposit
   with numerous mineralised intersections in drill holes have not been fully
   explored.

   The next milestones at the property include:

    1. Mineral Resource estimate update in Q2 2023
    2. Initial Ore Reserve estimate in Q4 2023
    3. Mining license approval in Q1 2024
    4. Preliminary feasibility study in Q1 2025.

    

   Figure 1 "Geological cross-section" is available in the attachment

   Competent persons

   This estimate  was  prepared  by employees  of  JSC  Polymetal  Management
   Company, led by Mr Andrey Gottman.

   Mr Gottman is employed full-time as the chief exploitation geologist chief
   exploitation geologist  JSC Polymetal  Engineering and  has more  than  20
   years' experience in gold, silver and polymetallic mining. He is a  Member
   of the National Association for mineral resources assessment.

   All the above-mentioned 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.

   About Polymetal 

   Polymetal International plc (together with its subsidiaries - "Polymetal",
   the "Company", or the "Group") is a top-10 global gold and silver producer
   with assets in Russia and  Kazakhstan. The Company combines strong  growth
   with a robust dividend yield.

   Enquiries

       Media                          Investor Relations
                                  Polymetal
                                              3 ir@polymetalinternational.com
   FTI Consulting                 Evgeny
                          +44 20  Monakhov   +44 20 7887 1475 (UK)
   Leonid Fink            3727
                          1000    Timofey     
   Viktor Pomichal                Kulakov
                                             +7 812 334 3666 (Russia)
                                  Kirill
                                  Kuznetsov
       Joint Corporate Brokers         
                          +44 20
   Morgan Stanley & Co.   7425
   International plc      8000

   Andrew Foster                  RBC Europe
                                  Limited
   Richard Brown           
                                  Marcus     +44 20 7653 4000
   Panmure Gordon                 Jackson

   John Prior                     Jamil Miah

   Rupert Dearden         +44 20
                          7886
                          2500

   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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    4  1  Based on market prices as of 21 January 2022. Metal recovery to
   concentrate and metal payability in concentrate are also taken into
   account.

    5  2  Discrepancies in calculations are due to rounding.

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   Attachment

   File:  6 Polymetal: Novopetrovsky initial Mineral Resource estimate

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   ISIN:           JE00B6T5S470
   Category Code:  MSCM
   TIDM:           POLY
   LEI Code:       213800JKJ5HJWYS4GR61
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   138273
   EQS News ID:    1271747


    
   End of Announcement EQS News Service

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