REG-Polymetal International plc Polymetal: Ore Reserves increase at Kyzyl
09/11/2020 07:05
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Polymetal International plc (POLY)
Polymetal: Ore Reserves increase at Kyzyl
09-Nov-2020 / 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 time IMMEDIATE LSE, MOEX, AIX: POLY / ADR:
AUCOY
Date 09 November 2020
Polymetal International plc
Ore Reserves increase at Kyzyl
Polymetal announces a 25% increase in Ore Reserves at Kyzyl to 10.3 Moz of
gold following initial reserve estimate at East Bakyrchik of 2.2 Moz of
gold.
"A substantial reserve addition at East Bakyrchik extends the life-of-mine
at Kyzyl to 30 years", said Vitaly Nesis, Group CEO of Polymetal.
"Importantly, open-pit mining will now continue till 2036".
HIGHLIGHTS
• The initial JORC-compliant Ore Reserve estimate for East Bakyrchik
(Zone 2 of Kyzyl) as at 1 April 2020 comprises 18.8 Mt of ore at an
average grade of 3.7 g/t containing 2.2 Moz of gold, roughly 80% of
which are underground.
• Total Kyzyl Ore Reserves now stand at 59.3 Mt of ore with an average
grade of 5.4 g/t containing 10.3 Moz of gold. This represents a 25%
increase compared with the estimate at the end of 2019.
• Open-pit reserves increased by 9% to 4.3 Moz of gold contained at an
average grade of 4.9 g/t, underground reserves were up 40% to 6.0 Moz
at an average grade of 5.8 g/t.
• East Bakyrchik has added 5 years to the total Kyzyl life of mine
(2050), while life-of-mine (LOM) for the open pit has extended by 6
years (to 2036). East Bakyrchik open-pit LOM average strip ratio is 27
t/t.
• The new mining schedule assumes an increase in the capacity of the
Kyzyl processing plant from 2.0 Mtpa to 2.2 Mtpa in 2022.
• East Bakyrchik Ore Reserve estimate incorporates data from the
exploration campaign in 2015-2020 including 29.9 km of drilling (168
diamond drill holes).
• Total Kyzyl Mineral Resources (additional to Ore Reserves) amount to
15.6 Mt of ore with an average grade of 4.0 g/t representing 2.0 Moz
of gold contained.
Ore Reserves (Proved + Probable) changes
01.04.2020
Ore Reserves Category 01.01.2020 (Bakyrchik & Change, %
(Bakyrchik)
East Bakyrchik)
Tonnage, Mt 21.8 27.3 +25%
Open pit 1 1 Au grade, g/t 5.7 4.9 -13%
Au content, Moz 4.0 4.3 +9%
Tonnage, Mt 18.8 32.1 +71%
Underground Au grade, g/t 7.1 5.8 -18%
Au content, Moz 4.3 6.0 +40%
Tonnage, Mt 40.6 59.3 +46%
Total Au grade, g/t 6.3 5.4 -15%
Au content, Moz 8.2 10.3 +25%
ORE RESERVES
The Ore Reserve estimate is reported in accordance with the JORC Code
(2012) and was prepared by Polymetal using a gold price of US$ 1,200/oz.
For the Bakyrchik open pit and underground the previous estimate was
performed as at 1 July 2019, the updated estimate was prepared as at 1
April 2020 and accounts for the pit extension and depletion. A cut-off
grade of 0.8 g/t of gold was applied for the open pit and 3.0 g/t for the
underground. East Bakyrchik initial Ore Reserve estimate was performed as
at 1 April 2020. A cut-off grade for recovered gold of 0.6 g/t was applied
for the open pit and 2.0 g/t for the underground, the reserves were
estimated on the basis of variable recovery value for each of the blocks
generated.
Kyzyl Ore Reserve estimate
Ore Reserves Tonnage, Gold grade, Gold content,
Mt g/t Moz
Proved
Open-pit (Bakyrchik) 1.4 7.4 0.3
Stockpiles 0.4 5.2 0.1
Total Proved 1.8 6.9 0.4
Probable
Open-pit 25.5 4.8 3.9
Bakyrchik 20.4 5.3 3.5
East Bakyrchik 5.0 2.6 0.4
Underground 32.1 5.8 6.0
Bakyrchik 18.4 7.1 4.2
East Bakyrchik 13.7 4.1 1.8
Total Probable 57.5 5.3 9.9
Proved + Probable
Open-pit 26.9 4.9 4.2
Bakyrchik 21.8 5.4 3.8
East Bakyrchik 5.0 2.6 0.4
Underground 32.1 5.8 6.0
Bakyrchik 18.4 7.1 4.2
East Bakyrchik 13.7 4.1 1.8
Stockpiles 0.4 5.2 0.1
Total Proved+Probable 59.3 5.4 10.3
Notes: discrepancies in calculations are due to rounding
MINERAL RESOURCES
The Mineral Resources estimate is reported in accordance with the JORC
Code (2012) and was prepared by Polymetal using a gold price of US$
1,200/oz. For the Bakyrchik open pit and underground the previous estimate
was performed as at 1 July 2019, the updated estimate was prepared as at 1
April 2020 and accounts for the pit extension and depletion. Cut-off
grades of 0.8 g/t and 3.0 g/t of gold were applied for the open and the
underground, respectively. East Bakyrchik updated Mineral Resource
estimate was performed as at 1 April 2020. A cut-off grade for recovered
gold of 0.6 g/t was applied for the open pit and 2.0 g/t for the
underground, the resources were estimated on the basis of variable
recovery for each of the blocks generated. The Mineral Resource estimate
for Bolshevik was prepared by Polymetal as at 1 January 2019, revised
estimate was not performed due to lack of material changes. Cut-off grades
for the open pit and the underground are 1.0 g/t and 3.3 g/t of gold,
respectively.
Kyzyl Additional Mineral Resource estimate
Mineral Resources (additional to Ore Tonnage, Gold grade, Gold content,
Reserves) Mt g/t Moz
Measured
Open-pit (Bakyrchik) 0.0 2.5 0.003
Total Measured 0.0 2.5 0.003
Indicated
Open-pit 1.8 2.2 0.1
Bakyrchik 0.7 2.2 0.1
East Bakyrchik 0.4 1.2 0.0
Bolshevik 0.7 2.9 0.1
Underground 5.0 4.5 0.7
Bakyrchik 2.1 4.8 0.3
East Bakyrchik 2.5 4.0 0.3
Bolshevik 0.4 6.4 0.1
Total Indicated 6.8 3.9 0.9
Measured + Indicated
Open-pit 1.9 2.2 0.1
Bakyrchik 0.8 2.2 0.1
East Bakyrchik 0.4 1.2 0.0
Bolshevik 0.7 2.9 0.1
Underground 5.0 4.5 0.7
Bakyrchik 2.1 4.8 0.3
East Bakyrchik 2.5 4.0 0.3
Bolshevik 0.4 6.4 0.1
Total Measured + Indicated 6.8 3.9 0.9
Inferred
Open-pit 3.9 2.3 0.3
Bakyrchik 0.4 2.0 0.02
Bolshevik 3.5 2.3 0.3
Underground 4.9 5.6 0.9
Bakyrchik 2.4 6.4 0.5
East Bakyrchik 0.6 3.7 0.1
Bolshevik 1.9 5.2 0.3
Total Inferred 8.7 4.1 1.2
Measured + Indicated + Inferred
Open-pit 5.7 2.3 0.4
Bakyrchik 1.2 2.1 0.1
East Bakyrchik 0.4 1.2 0.02
Bolshevik 4.2 2.4 0.3
Underground 9.8 5.1 1.6
Bakyrchik 4.5 5.7 0.8
East Bakyrchik 3.1 4.0 0.4
Bolshevik 2.2 5.4 0.4
Total Measured + Indicated + Inferred 15.6 4.0 2.0
Notes: discrepancies in calculations are due to rounding.
Competent persons
This estimate was prepared by employees of JSC Polymetal Management
Company, JSC Polymetal Engineering and 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 19 years' experience in gold, silver and
polymetallic mining. Being a Fellow of the Institute of Materials,
Minerals & Mining (FIMMM), 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 34 years'
relevant experience;
• Mining and Ore Reserves: Open Pit Bakyrchik - Anton Ignatov, Chief
Specialist for Open-pit Mining, Technical Department, Polymetal
Management Company, MIMMM, with 17 years' relevant experience; Open
Pit East Bakyrchik - Dmitriy Teterin, Head of Mineral Resources and
Ore Reserves Audit Department, Polymetal Engineering, FIMMM, with 11
years' relevant experience; Underground - Andrei Somov, Head of
underground mining Department, Polymetal Engineering, PONEN, FIMMM,
with 32 years' relevant experience;
• Concentration and Metals - Igor Agapov, Director of Science and
Technology Department, Polymetal Engineering, MIMMM, with 22 years'
relevant experience;
• Mineral Resources, Bolshevik - Alexander Cherepanov, Lead Geologist,
Prospecting and Exploration Department, Polymetal Management Company,
MIMMM, with 27 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 plc (together with its subsidiaries - "Polymetal",
the "Company", or the "Group") is a top-10 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.
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"forward-looking statements". These forward-looking statements speak only
as at the date of this release. These forward-looking statements can be
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each case their negative or other variations or by discussion of
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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
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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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3 1 Including stockpiles
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ISIN: JE00B6T5S470
Category Code: MSCM
TIDM: POLY
Sequence No.: 87431
EQS News ID: 1146358
End of Announcement EQS News Service
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