REG-Polymetal International plc Polymetal: Ore Reserves increase at Kyzyl
11/11/2019 07:05
============
Polymetal International plc (POLY)
Polymetal: Ore Reserves increase at Kyzyl
11-Nov-2019 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR:
AUCOY
Date 11 November 2019
Polymetal International plc
Ore Reserves increase at Kyzyl
Polymetal is pleased to announce an 18% increase in Ore Reserves at Kyzyl
gold deposit to 8.5 Moz of gold in accordance with the JORC Code (2012).
"We have concluded the first stage of extending open-pit life-of-mine at
our flagship operation. The next step is to estimate Ore Reserves at East
Bakyrchik in Q4 2020", said Vitaly Nesis, Group CEO of Polymetal.
• The updated JORC-compliant Ore Reserve estimate as of 1 July 2019
comprises 41.7 Mt of ore with an average grade of 6.3 g/t containing
8.5 Moz of gold. This represents an 18% increase in gold contained in
comparison with the reserves as at the end of 20181.
• Open-pit reserves increased by 37% to 4.2 Moz of gold contained at an
average grade of 5.7 g/t, while underground reserves were up 4% to 4.3
Moz of gold contained at an average grade of 7.1 g/t.
• Total life of mine extended by 8 years (to 2047), while life of mine
for the open pit added 5 years (to 2031) in comparison with the
previous Feasibility Study estimate conducted in 2015 ("FS").
• The updated Ore Reserve estimate incorporates data from the drilling
campaign (additional 239 diamond drill holes, 41.5 km of drilling)
which resulted in extension of mineralization zones within the
existing ore bodies and update of the resource model.
• Cut-off grades decreased from 2.0 g/t to 1.0 g/t for the open pit and
from 3.7 g/t to 3.0 g/t for the underground compared to the previous
FS. The decline was driven by lower mining and processing costs based
on actual operational and economic data and lower concentrate
processing and transportation expenses which now take into account
concentrate processing at the Amursk POX.
• The new mining schedule assumes increased capacity of the Kyzyl
processing plant which grew from the originally designed 1.8 Mtpa to
2.0 Mtpa in 2019.
Ore Reserves (Proved + Probable) changes
Ore Reserves Category 01.01.2019 1 1 01.07.2019 Change, %
Tonnage, Mt 13.6 22.9 +68%
Open pit Au grade, g/t 7.0 5.7 -19%
Au content, Moz 3.1 4.2 +37%
Tonnage, Mt 15.1 18.8 +25%
Underground Au grade, g/t 8.5 7.1 -16%
Au content, Moz 4.1 4.3 +4%
Tonnage, Mt 28.7 41.7 +45%
Total Au grade, g/t 7.8 6.3 -19%
Au content, Moz 7.2 8.5 +18%
Ore Reserves reconciliation, Moz
Ore Reserves, 01.01.2019 Depletion Revaluation Ore Reserves, 01.07.2019
7.2 -0.2 +1.5 8.5
Notes: Discrepancies in calculations are due to rounding. This note
applies to all tables in this release.
ORE RESERVES
The Ore Reserve estimate is reported in accordance with the JORC Code
(2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and was
prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied for
the open pit and 3.0 g/t for the underground. Ore Reserves were estimated
solely for Zone 1 of the Bakyrchik deposit, Zone 2 (East Bakyrchik)
reserves were not estimated.
Kyzyl Ore Reserves estimate as at 1 July 2019
Ore Reserves Tonnage, Gold grade, Gold content,
Mt g/t Moz
Proved
Open pit 1.2 6.3 0.3
Stockpiles 0.5 5.9 0.1
Total Proved 1.7 6.2 0.3
Probable
Open pit 21.2 5.7 3.9
Underground 18.8 7.1 4.3
Total Probable 40.0 6.3 8.1
Proved+Probable
Open pit 22.5 5.7 4.1
Underground 18.8 7.1 4.3
Stockpiles 0.5 5.9 0.1
Total Proved+Probable 41.7 6.3 8.5
MINERAL RESOURCES
The Mineral Resources estimate for Zone 1 is reported in accordance with
the JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz
and was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was
applied for the open pit and 3.0 g/t for the underground. The Mineral
Resources estimate for Zone 2 was prepared by RPA Inc. in accordance with
the JORC Code (2012) as at 1 January 2015. Cut-off grades for the open pit
and the underground are 2.0 g/t and 3.7 g/t of gold, respectively. Revised
estimate for Zone 2 was not conducted due to the lack of material changes.
Kyzyl Mineral Resources estimate
Mineral Resources Tonnage, Gold grade, Gold content,
Mt g/t Moz
Indicated
Underground (Zone 1) 2.3 5.0 0.4
Total Indicated 2.3 5.0 0.4
Inferred
Open-pit 0.5 3.8 0.1
Zone 1 0.2 2.3 0.01
Zone 2 0.3 4.8 0.05
Underground 10.8 6.7 2.3
Zone 1 2.4 6.4 0.5
Zone 2 8.4 6.8 1.8
Total Inferred 11.4 6.6 2.4
Indicated + Inferred
Open-pit 0.5 3.8 0.1
Zone 1 0.2 2.3 0.01
Zone 2 0.3 4.8 0.05
Underground 13.1 6.4 2.7
Zone 1 4.7 5.7 0.9
Zone 2 8.4 6.8 1.8
Total Indicated + Inferred 13.6 6.3 2.8
Notes: Mineral Resources are additional to Ore Reserves.
ABOUT KYZYL
Kyzyl is a world-class asset located in north-eastern Kazakhstan in a
traditional mining region with good infrastructure and easy access to grid
power and the railway. In 2014, the asset was acquired by Polymetal. The
initial Feasibility Study and the updated Ore Reserve and Mineral Resource
estimates was completed by the Company in 2015.
The operation comprises the Bakyrchik refractory gold deposit and a
state-of-the-art 2.0 Mtpa processing plant employing conventional
flotation technology. The ultimate product of the production facility is
flotation concentrate. Low carbon concentrate is sent for processing to
the Company's POX facility in Amursk, while the high carbon concentrate
currently goes to third party off-takers. With the launch of POX-2,
Polymetal intends to process 100% of Kyzyl concentrate in-house.
Competent persons
This estimate was prepared by employees of JSC Polymetal Management
Company and JSC Polymetal Engineering, subsidiaries of the Company, led by
Mr. Valery Tsyplakov.
Mr. Tsyplakov is employed full-time as the Managing Director of JSC
Polymetal Engineering and has more than 18 years' experience in gold,
silver and polymetallic mining. Being a Member of the Institute of
Materials, Minerals & Mining (MIMMM), London, he is 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 - Victor Pchelka, Head of Production and
Geology Department, Polymetal Eurasia, PONEN, MIMMM, with 33 years'
relevant experience;
• Mining and Ore Reserves: Open Pit - Dmitriy Teterin, Head of Mineral
Resources and Ore Reserves Audit Department, Polymetal Engineering,
MIMMM, with 10 years' relevant experience; Underground - Andrei Somov,
Head of underground mining Department, Polymetal Engineering, MIMMM,
with 31 years' relevant experience
• Concentration and Metals - Igor Agapov, Deputy Director of Science and
Technology, Polymetal Engineering, MIMMM, with 21 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.
About Polymetal
Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its
subsidiaries - "Polymetal", the "Company", or the "Group") is the top-20
global gold producer and top-5 global silver producer with assets in
Russia and Kazakhstan. The Company combines strong growth with a robust
dividend yield.
Enquiries
Media Investor Relations
Polymetal
2 ir@polymetalinternational.com
FTI Consulting Evgeny
Monakhov +44 20 7887 1475 (UK)
Leonid Fink +44 20
3727 1000 Timofey
Viktor Pomichal Kulakov
+7 812 334 3666 (Russia)
Kirill
Kuznetsov
Joint Corporate
Brokers
Morgan Stanley +44 20
7425 8000
Andrew Foster RBC Europe
Limited
Richard Brown
Marcus Jackson +44 20 7653 4000
Panmure Gordon
Jamil Miah
Charles Lesser
+44 20
James Stearns 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.
══════════════════════════════════════════════════════════════════════════
3 1 Previous JORC-compliant estimate was prepared by RPA Inc. as at
01.01.2015. Price: Au = US$1,200/oz. Revised estimate prepared by
Polymetal as at 01.01.2019 accounts only for depletion.
══════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: MSCM
TIDM: POLY
Sequence No.: 28204
EQS News ID: 908863
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
4 fncls.ssp?fn=show_t_gif&application_id=908863&application_name=news&site_id=refinitiv2
References
Visible links
1. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_BHXYegmz.html#_ftn1
2. mailto:ir@polymetalinternational.com
3. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_BHXYegmz.html#_ftnref1
============Recent news on Polymetal International PK
See all newsREG - Official List Polymetal Int PLC - Removal - Polymetal International plc
AnnouncementREG - Stock Exch Notice Polymetal Int PLC - Cancellation - Polymetal International plc
AnnouncementREG-Polymetal International plc Polymetal: Resumption of trading on AIX
AnnouncementREG-Polymetal International plc Polymetal: Q2 2023 production results
AnnouncementREG-Polymetal International plc Polymetal: Re-Domiciliation to AIFC Completed
Announcement