REG-Polymetal International plc Polymetal: Ore Reserves increase at Veduga

Polymetal International PKAnnouncement

13/06/2019 07:05

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   Polymetal International plc (POLY)
   Polymetal: Ore Reserves increase at Veduga

   13-Jun-2019 / 09:01 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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   0Release time IMMEDIATE                       LSE, MOEX, AIX: POLY / ADR:
                 AUCOY
   Date          13 June 2019

    

    

   Polymetal International plc

   Ore Reserves increase at Veduga  

   Polymetal more than doubles Ore Reserves at the Veduga gold deposit to 2.8
   Moz of gold following an extensive exploration campaign.

     • The updated JORC-compliant  Ore Reserve  estimate as at  1 March  2019
       comprises 18.9 Mt of ore with  an average grade of 4.6 g/t  containing
       2.8 Moz of gold.  This represents a 111%  increase in gold  contained.
       Gold price  assumption  of  US$  1,200/oz was  used  to  complete  the
       estimate.
     • Open-pit reserves increased by 31% to  0.8 Moz of gold contained  (28%
       of total reserves) at an average grade of 3.8 g/t.
     • The estimate  incorporates results  from 57  additional diamond  drill
       holes (24 km  of drilling) completed  by Polymetal in  2017 and  2018.
       Total  investment   in   this   exploration   campaign   amounted   to
       approximately US$  5  million  or  US$ 5  per  ounce  of  newly  added
       reserves.
     • The bulk of new reserves  is located at the depths  of 500 m to 790  m
       from the  surface. Mineralisation  is  represented by  two  contiguous
       sub-vertical ore bodies  with an average  true width of  14 and 21  m.
       Thickness of the ore bodies varies from 1 to 65 meters.

   "The new reserve numbers confirm that Veduga is large, high-grade, and  is
   likely to be  larger still", said  Vitaly Nesis, Group  CEO of  Polymetal.
   "The updated estimate and fresh exploration results should be helpful  for
   potential acquirers of the asset".

   Ore Reserves reconciliation

   Ore Reserves           Category     01.01.2019 01.03.2019 Change, %
                         Tonnage, Mt      8.6        18.9      +120%
     Proved + Probable  Au grade, g/t     4.8        4.6        -4%
                       Au content, Moz    1.3        2.8       +111%

   Notes: Ore Reserves are reported on  a 100% ownership basis in  accordance
   with the JORC  Code (2012) and  are estimated  using a gold  price of  US$
   1,200/oz. Discrepancies  in  calculations  are due  to  rounding.  Cut-off
   grades for  open-pit and  underground are  1.0  g/t and  2.5 g/t  of  gold
   equivalent, respectively. 

   The attributable  Ore  Reserves,  based on  74.3%  Polymetal's  ownership,
   comprise 14.0 Mt of ore  with an average grade  of 4.6 g/t containing  2.1
   Moz of gold

   ABOUT VEDUGA

   Veduga is  a high-grade  refractory  gold deposit  located in  a  prolific
   Northern Yenisey  gold  belt  in  the Krasnoyarsk  Region,  the  top  gold
   producing region of  Russia. Polymetal  has been  a partial  owner of  the
   property since 2006 with  the original 50% stake  acquired through the  JV
   with  AngloGold  Ashanti  and  subsequently  diluted  by  external  equity
   financing.

   In October 2018, the Company increased its ownership in Veduga to 74.3%.

   Veduga comprises 4  licence plots  with the total  area of  18 sq.km.  The
   property is accessible by  an all-year road and  has direct access to  the
   federal power grid.  It Is located  60 km from the largest producing  gold
   mine in Russia, Olimpiada (owned by Polyus).

   Currently, mining at Veduga focuses on high-grade open pit which  supplies
   ore  for  processing   at  Polymetal's  Varvara   mill  with   concentrate
   subsequently treated at the Amursk POX.

   2019-2020 exploration program consists of 254 diamond drill holes totaling
   68 703 m and 24 000 m3 of trenches. First results include:

     • True width: 4 m at 16.9 g/t gold from 391-396 m.
     • True width: 59 m at 6.8 g/t gold from 796-898 m.

    

   ORE RESERVES

   The Ore Reserve  estimate is  reported in  accordance with  the JORC  Code
   (2012) as at  1 March  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 equivalent  has
   been applied for the open pit and 2.5 g/t for the underground.

   Veduga Ore Reserves estimate as at 1 March 2019

   Ore Reserves            Tonnage Gold grade, Gold content,
                             Mt        g/t          Koz
                                                      
   Stockpiles                0.5       3.5          52
   Total Proved              0.5       3.5          52
                                                      
   Open-pit                  6.4       3.8          779
   Underground              12.0       5.1         1,959
   Total Probable           18.4       4.6         2,738
                                                      
   Total Proved + Probable  18.9       4.6         2,790

   Notes: Ore Reserves are reported on  a 100% ownership basis in  accordance
   with the  JORC  Code (2012).  Discrepancies  in calculations  are  due  to
   rounding.

    

   ADDITIONAL MINERAL RESOURCES

   Additional Mineral Resources  for Veduga are  reported in accordance  with
   the JORC  Code (2012)  as  at 1  March  2019 using  a  gold price  of  US$
   1,200/oz. Mineral Resources for the open pit were estimated up to a  depth
   of 230 m from the surface.

   Veduga additional Mineral Resources estimate as at 1 March 2019

   Mineral Resources         Tonnage Gold grade, Gold content,
                               Mt        g/t          Koz
                                                        
   Stockpiles                  0.5       0.8          14
   Total Measured              0.5       0.8          14
                                                        
   Open-pit                    0.0       3.1           4
   Underground                 1.3       4.4          184
   Total Inferred              1.3       4.4          188
                                                        
   Total Measured + Inferred   1.9       3.4          202

   Notes: Mineral  Resources  are  reported  on a  100%  ownership  basis  in
   accordance with the  JORC Code (2012).  Discrepancies in calculations  are
   due to rounding. Measured and  Indicated Mineral Resources are  additional
   to Ore  Reserves.  Inferred Mineral  Resources  are by  definition  always
   additional to Ore Reserves.

   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 the  employed full-time as the  Managing Director of  JSC
   Polymetal Engineering  and has  more than  18 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  18 years'  relevant
       experience;
     • Mining and  Ore  Reserves -  Igor  Epshteyn, Head  of  Mining  Process
       Department, FIMMM, with 37 years' relevant experience;

     • Concentration and Metals - Igor Agapov, Deputy Director of Science and
       Technology, 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 plc (LSE, MOEX,  AIX: POLY, ADR: AUCOY)  (together
   with its subsidiaries - "Polymetal", the  "Company", or the "Group") is  a
   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
   FTI                 Polymetal              1 ir@polymetalinternational.com
   Consulting
                +44 20 Eugenia Onuschenko    +44 20 7887 1476 (UK)
   Leonid Fink  3727
                1000   Timofey Kulakov        
   Viktor
   Pomichal            Michael Vasiliev      +7 812 334 3666 (Russia)
                                        
       Joint Corporate      
       Brokers
   Morgan
   Stanley
                +44 20
   Andrew       7425
   Foster       8000

   Richard             RBC Europe Limited
   Brown
                       Marcus Jackson        +44 20 7653 4000
   Panmure
   Gordon              Jamil Miah

   Charles      +44 20
   Lesser       7886
                2500
   James
   Stearns

    

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   BASED

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   ISIN:          JE00B6T5S470
   Category Code: MSCM
   TIDM:          POLY
   Sequence No.:  10011
   EQS News ID:   823497


    
   End of Announcement EQS News Service

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References

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   1. mailto:ir@polymetalinternational.com


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