REG-Polymetal International plc Polymetal: Ore Reserves, Mineral Resources and Exploration update as at 1 January 2022
01/03/2022 07:15
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Polymetal International plc (POLY)
Polymetal: Ore Reserves, Mineral Resources and Exploration update as at 1
January 2022
01-March-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 01 March 2022
Polymetal International plc
Ore Reserves, Mineral Resources and Exploration update as at 1 January 2022
Polymetal announces its Ore Reserves and Mineral Resources as at 1 January 2022
in accordance with the JORC Code (2012) and exploration update for the year
ended 31 December 2021.
"In 2021, exploration success and technical innovation have more than offset
depletion and resulted in a significant ore reserve increase", said Vitaly
Nesis, Group CEO of Polymetal."Our steady investment in exploration also
secured the expansion of mineral resources which ensures Polymetal's consistent
long-term growth".
2021 HIGHLIGHTS
• In 2021, Group Ore Reserve increased by 7% or 2 Moz y-o-y to 30 Moz of gold
equivalent (GE) 1 1 on the back of successful near-mine exploration at
Nezhda, Veduga, and Kutyn (Albazino hub), as well as initial reserve
estimates at Elevator (Varvara hub), Saum (Voro hub) and Nevenrekan (Omolon
hub). As a result, GE Ore Reserves per share grew by 7%.
• The reserve replacement ratio amounted to 208% 2 2 . Average mine life
increased by 11% y-o-y to reach 16 years.
• The average grade in Ore Reserves was down 7% y-o-y and stood at 3.5 g/t of
GE primarily due to high-grade reserve depletion at Kyzyl, Omolon and
Mayskoye. Polymetal GE grades continue to be one of the highest within the
sector globally.
• Share of Ore Reserves for open-pit mining stood at 53%, similar to the
previous year. Share of refractory reserves amounted to 71%, stable y-o-y.
Share of silver in Ore Reserves decreased by 2 percentage points to 9%.
• Mineral Resources (additional to Ore Reserves) grew by 13% or 2.8 Moz y-o-y
to 24.6 Moz of GE due to initial resource estimates at Novopet (JV with
Rosgeo), Voro hub (Pavlov) as well as resource increases at Albazino,
Mayskoye and Nezhda.
• At the end of 2021, the Board of Directors made the decision to align price
assumptions used for Ore Reserve and Mineral Resource estimates with
short-term price assumptions used for current mine planning. This approach
ensures full consistency of long and short-term plans as well as improves
transparency of production indicators. Starting from this report, Polymetal
uses US$ 1,500/oz for gold and US$ 20/oz for silver in both cases.
Ore Reserves and Mineral Resources summary (1), (2)
1 January 1 January Change
2022 2021
Ore Reserves (Proved+Probable), GE Moz 29.9 27.9 +7%
Gold, Moz 27.1 24.9 +9%
Silver, Moz 240.2 246.3 -2%
Average reserve grade, g/t 3.5 3.8 -7%
Ore Reserves per share, GE oz/per share 0.063 0.059 +7%
Mineral Resources (Measured+Indicated+Inferred), GE 24.6 21.8 +13%
Moz
Gold, Moz 22.3 19.5 +15%
Silver, Moz 195.7 191.9 +2%
Average resource grade, g/t 4.1 4.7 -11%
1. Ore Reserves and Mineral Resources from continuing operations. Base metal
are not included in GE calculation as they are insignificant. Ore Reserves
of rare earths metals are given separately and not included in GE
calculation.
2. Mineral Resources are additional to Ore Reserves. Mineral Resources of
platinum group metals and rare earth metals are given separately and are
not included in the calculation of GE. Discrepancies in calculations are
due to rounding.
2022 OUTLOOK
In 2022, Polymetal will continue to invest in both near-mine and greenfield
exploration projects.
The key objectives are:
• Complete an updated Ore Reserve estimate at Veduga.
• Prepare an initial Ore Reserve estimate at Talgiy (Albazino).
• Prepare an initial Mineral Resource estimate at Doroninskaya area (Dukat).
Ore Reserves and Mineral Resources structure by metal as at 1 January 2022
Ore Reserves Mineral Resources
Gold 91% 91%
Silver 9% 9%
Total 100% 100%
Ore Reserves reconciliation, GE Moz (1)
Ore Reserves, Initial Ore Change of GE Ore Reserves,
01.01.2021 Depletion Revaluation Reserve conversion ratio 01.01.2022
estimate
27.9 -1.8 +2.9 +0.9 +0.0 29.9
1. Discrepancies in calculations are due to rounding.
Ore Reserves and Mineral Resources as at 1 January 2022 (1)
Tonnage Grade Content
Mt GE, g/t GE, Moz
Ore Reserves
Proved 78.6 2.6 6.7
Probable 188.1 3.8 23.2
Proved+Probable 266.7 3.5 29.9
Mineral Resources
Measured 20.7 3.6 2.4
Indicated 60.5 3.4 6.7
Measured+Indicated 81.2 3.5 9.0
Inferred 104.0 4.7 15.6
Measured+Indicated+Inferred 185.1 4.1 24.6
1. Mineral Resources and Ore Reserves in accordance with the JORC Code (2012).
Mineral Resources are additional to Ore Reserves. Detailed tables for
Mineral Resources and Ore Reserves with a breakdown by deposits and metals
are given below. Mineral Resources of platinum group metals and rare earth
metals are given separately and are not included in the calculation of the
gold equivalent. Discrepancies in calculations are due to rounding.
Exploration areas and volumes (mine site exploration excluded) (1)
Drilling, km
2021 2020
Brownfield
Kyzyl 3.5 2.4
Albazino hub 59.0 51.7
Omolon hub 29.8 8.0
Varvara hub 34.7 13.7
Dukat hub 45.0 3.3
Svetloye 27.8 3.6
Voro hub 34.0 12.6
Mayskoye 3.6 -
Subtotal 237.4 95.2
Greenfield
Yakutia 27.2 12.7
Nezhda 9.5 4.9
Prognoz 17.7 7.8
Kutyn 28.6 25.5
Veduga 10.6 27.0
Bashkiria 6.5 -
Urals - 5.1
Karelia 14.5 -
Viksha - 22.2
Others - 0.7
Subtotal 87.3 93.3
Total 324.7 188.5
Joint ventures with juniors 71.3 -
Total including JVs 396.0 188.5
1. Discrepancies in calculations are due to rounding.
EXPLORATION RESULTS
In 2021, exploration activities were carried out at 97 licensed properties. In
total, 325 km (excluding JVs) of drilling was completed, 1.5 times more than in
2020. 45 new licenses for geological studies, exploration and production of
gold, silver, PGMs, copper and base metals were obtained. The total number of
licenses owned by the Company was 172, the total licensed area - 12,200 km2.
Kyzyl
• In 2021, exploration drilling was carried out at East Bakyrchik to confirm
the prospects for expanding the open pit and increase of the mineral
resource base for the open pit mining. Exploration drilling of 3.5 km was
completed. The contours of ore bodies and the boundaries of mineralization
were refined.
• In 2022, further exploration at Eastern Bakyrchik sites is planned to
convert open-pit Mineral Resources into the Indicated category.
Additionally, Polymetal is planning exploration drilling to prospect the
eastern flank of the Kyzyl shear zone, including the Sarbas and Karmen
deposits. Also, deeper levels of the ore body 1 will be traced to increase
Inferred resources.
Albazino hub
• At Albazino, in 2021, exploration activities included exploration drilling
(10.6 km) along the flanks and delineation of the ore body at the southern
flank of the Olga open pit. Additional Mineral Resources increased by 342
Koz to 2.2 Moz with an average grade of 4.2 g/t.
• In 2022, small-scale drilling is planned at Albazino on the northeastern
extension of the Anfisa and Nadezhda zones and on Olga's southern flank.
• Exploration activities were completed at the Talgiy section of the Urkachik
area (38.9 km of drilling). A complex of engineering-hydrogeological and
oriented geomechanical drilling was carried out; metallurgical studies are
nearing completion. On the flanks, exploration activities were carried out
to delineate and trace ore bodies down dip. The Mineral Resource estimate
is 1.1 Moz of gold with an average grade of 3 g/t - an increase by 576 Koz
in 2021. The initial Ore Reserve estimate is scheduled for 2022.
• At Kutyn, 28.5 km of exploration drilling and 30,900 m3 of trenches were
completed. Most of the exploration work was focused on upgrading Mineral
Resources categories for mine planning. Besides, the deep horizons of the
primary ore body were assessed with the use of exploration drilling on a
wide-spaced grid. Areas of primary ore development with ore sections
suitable for underground mining have been established. Ore Reserves
increased by 40% (or 325 Koz) to 1.1 Moz of gold with an average grade of
2.9 g/t. Additional MR totaled 414 Koz of gold with an average of 5.1 g/t.
• In 2022, the Company will continue to delineate free-milling ore on the
flanks of the Kutyn deposit, explore deep horizons of primary ores, search
and evaluate new ore bodies within the areas of promising geochemical and
geophysical anomalies. Detailed drilling will be performed within the later
stages of the proposed open pit area to convert Mineral Resources into Ore
Reserves.
• In 2022, the Company also plans to continue lithochemical prospecting
within the lower Amur region and further study the identified geochemical
anomalies by drilling with small-sized equipment.
Omolon hub
• At Burgali, 12.3 km of exploratory drilling was completed along the
existing ore bodies of the Northern zone and at the Southern and Central
zones to identify and trace the prospective ore bodies. The initial Ore
Reserve estimate amounted to 231 Koz of gold equivalent with an average
grade of 9.8 g/t, up by 110 Koz compared to the last year's estimate.
• In 2022, Polymetal is planning to continue exploration activities at all
ore zones of the deposit to delineate and detail ore bodies within the
first stage of open-pit mining and identify new ore bodies to increase the
mineral resource base.
• Initial Ore Reserves estimate for Nevenrekan was completed amounting to 170
Koz of GE with an average grade of 10.2 g/t
• At the Tumaninsk area (145 km north of Kubaka), 14.4 km of core drilling
was completed, including 3.3 km of exploration drilling at the Shlikhovoy
site.
• In 2022, the drilling is planned at the Tumannoye ore occurrence to
delineate high-grade underground ore on the southern flank and to prepare a
Russian standard (GKZ) reserve estimate. At the Shlikhovoy site, it is
planned to trace and delineate the identified potential ore bodies along
the strike and down dip by core drilling and to clarify their parameters
and morphology.
Varvara hub
• In 2021, at Elevator, 8.1 km of drilling was completed (40 drill holes).
The goal was to explore and create a detailed section in the center of the
deposit to upgrade Mineral Resource categories and convert them into Ore
Reserves, as well as delineate the ore body of the deposit in a western
direction. Elevator's initial Ore Reserve estimate comprises 421 Koz of
gold with an average grade of 1.2 g/t. Additional Mineral Resources
amounted to 240 Koz of gold with an average grade of 1.6 g/t.
• At Komar, Ore Reserves increased by 173 Koz to 1.2 Moz of gold equivalent
with an average grade of 1.6 g/t due to open pit boundaries extension.
• In 2022, Polymetal plans to perform mud drilling to complete the study of
the geochemical anomalies in the South-Elevator area.
Dukat hub
• During the reporting year, exploration activities were focused at the
Doroninskaya area. 14.5 km of drilling and 20,800 m3 of trenches were
completed.
• In 2022, it is planned to complete delineation and detailing of the ore
bodies in zone 1, conduct technological studies and prepare GKZ-compliant
ore reserve estimate.
• At Dukat, additional exploration of the flanks of ore bodies from
underground and surface was carried out to identify new areas of the
existing ore bodies with material content of metals and new ore bodies near
the existing mining operation. Within the Dukat ore cluster, Polymetal
started to verify the results of airborne geophysical survey in order to
identify a "blind" ore body. 5 drill holes with a total length of 4.3 km
were completed.
• In 2022, Polymetal plans to continue exploration activities and drilling to
verify geophysical and geochemical anomalies within the Dukat ore cluster.
Svetloye
• In 2021, exploration activities were carried out at the Svetloye deposit on
the flanks of the Lyudmila and Emmy ore zones using surface mining and
drilling. 26.4 km of core drill holes and 55,000 m3 of trenches were
completed. The 2021 exploration campaign allowed to identify number of
mineralization interceptions along the new and previously identified ore
bodies on the northern, northeastern and southern flanks of the Emi zone
and on the northwestern flanks of the Lyudmila zone. The exploration
potential of previously less studied mineralized areas was confirmed. The
increase in Ore Reserves based on the results of the exploration campaign
(57 Koz of gold) partially compensated for production in 2021. Additional
Mineral Resources increased by 45 Koz to 182 Koz.
• In 2022, it is planned to continue exploration activities on the flanks of
the deposit to identify new promising mineralization zones and determine
new areas of mineralization. Areal geochemical exploration will further
study the flanks of the deposit with undelineated gold anomalies.
• In 2021, exploration activities were carried out at the Kulyukli site (1.2
km of drilling and 13,000 m3 of trenches were completed). Ore intersections
were identified along the trenches in the Vostochnaya and Perevalnaya
zones, which assume a preliminary forecast estimate of 30-60 Koz of gold.
Voro hub
• At Pavlov, Polymetal conducted core drilling to delineate the identified
mineralization along the strike and down dip. 116 drill holes with total
length of 14.9 km were carried out. The initial JORC-compliant Mineral
Resource estimate was completed and amounted to 727 Koz of gold at an
average grade of 2.3 g/t.
• In 2022, the Company will continue exploration to prepare an updated
Mineral Resource and initial Ore Reserve estimates in 2023.
• At Andrei deposit, the exploration was focused on gold mineralized areas, a
total of 5.8 km of core drilling was completed. The initial Mineral
Resource estimate amounted to 174 Koz of gold with an average grade of 2.3
g/t.
• In 2022, Polymetal will continue exploration at the entire license area and
expects to complete statutory ore reserve approval (GKZ).
Mayskoye
• At Mayskoye, Ore Reserves and Mineral Resources were revaluated assuming
changes in cut-off grade and better recovery rate. Ore Reserves increased
by 103 Koz to 1.9 Moz with an average grade of 7.4 g/t; additional Mineral
Resources added 382 Koz to reach 3.2 Moz with an average grade of 9.3 g/t.
• No exploration is expected in 2022.
Nezhda
• In 2021, most of the exploration was carried out at the southern flank of
the deposit. 9.5 km of core drilling and 40,000 m3 of tranches were
completed. The results confirmed further potential of Mineral Resource
extension.
• Ore Reserves increased by 734 Koz (mainly underground) to 5.1 Moz of GE
with an average grade of 3.4 g/t. Additional Mineral Resources were up by
500 Koz to 8.6 Moz GE with an average grade of 4.8 g/t.
• In 2022, drilling will continue at the flanks to assess ore bodies with
open-pit resources extension potential.
Prognoz
• In 2021, 14.3 km of infill drilling was completed. The potential increase
in reserves was offset by the Ore Reserve revaluation based on processing
at Nezhda.
• Prospecting works were carried out at the promising Atyr-Moginsk and
Uzlovaya areas. The lithochemical samples analysis is in progress.
• In 2022, Polymetal will continue infill drilling at Glavnaya area to
prepare it for mining, as well as exploration works at Atyr-Moginsk and
Uzlovaya areas.
Veduga
• In 2021, Polymetal conducted exploration drilling at deep horizons of the
Ore Body 1 to evaluate the mineralization potential down dip, and at
Strelka section to trace the ore bodies along the strike and down dip.
Total drilling volumes amounted to 10.6 km. The Company was also developing
the exploration decline to study the Ore Body 1 to the horizon of -110 m
and prepare it for mining. The updated Ore Reserve estimate recorded an
increase of 1,3 Moz to 4 Moz of gold with an average grade of 3.9 g/t.
• In 2022, Polymetal will continue to evaluate resources of the Ore Body 1 at
the deep horizons. 8 km of drilling is planned. It is also expected to
complete the development of the exploration decline to the level of +0 m,
exploration galleries, as well as to conduct underground exploration and
carry out exploration at some new promising areas. The Company expects to
complete an updated Ore Reserve estimate.
PGMs
• Viksha
The Russian standard (GKZ) feasibility study and reserves were approved.
• Kuolisma (Karelia)
In 2021, 1.7 km of drill holes was completed. In 2022, the Company plans to
approve Russia statutory reserves (GKZ).
• Kaalamo (Karelia)
Two mineralization areas with high contents of PGMs contained in sulphidized
hornblendites were identified as a result of 9.2 km of drilling. In 2022,
Polymetal plans to further evaluate their viability.
JUNIOR JOINT VENTURES
Novopet, JV with Rosgeo (Republic of Bashkortostan, share of Polymetal - 75%)
• In 2021, 71 drill holes with a total length of 40 km were completed.
Subhorizontal ore body was studied at the depth of 350-450 m, the
exploration grid and initial JORC-compliant Mineral Resource estimate were
completed. Mineral Resources amounted to 2.4 Moz of GE at an average grade
of 8.0 g/t.
• In 2022, 12 km of drilling is planned. Updated Mineral Resource estimate
and initial Ore Reserve estimate are expected in 2023.
Taimyr JV (Taimyr Peninsula, Krasnoyarsk region, share of Polymetal - 70%)
• In 2021, the Company carried out 3.5 km of core drilling, geophysical and
geochemical works. Two copper mineralization areas as well as several
promising anomalies of copper and gold were identified.
• In 2022, JV will continue exploration at the identified mineralization and
promising geochemical anomalies.
Pekinskaya (Taimyr Peninsula, Krasnoyarsk region, share of Polymetal - 63%)
• During 2021, the JV completed 4.8 km of core drilling at the "First"
section as well as carried out geophysical and geochemical works. Several
molybdenum-copper anomalies were established within Dorozhin ore cluster.
Copper geochemical anomalies evaluation is in progress.
• In 2022, drilling and detailed exploration will take place at "First" and
"North" sections with the aim to discover porphyry-copper-molybdenum and
epithermal silver-gold ores.
Matenvunay (Chukotka), JV with MEN (share of Polymetal - 25%)
• In 2021, the annual exploration plan was not completed due to logistic
challenges and unsatisfactory state of a contractor's drilling equipment.
Four drill holes with a total length of 801 m and 8,700 m3 of trenches were
completed.
• In 2022, the Company is going to complete 2021 plans.
Please find the full PDF version of the announcement at the link at the bottom
of the page.
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
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 & Co. +44 20
International plc 7425 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
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4 1 ) GE includes gold and silver only here and further in the report unless
otherwise stated. Base metals are excluded due to their immateriality.
5 2 ) Reserves additions from revaluation and initial estimates / reserve
depletion.
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Attachment
File: 6 Polymetal: Ore Reserves, Mineral Resources and Exploration update as
at 1 January 2022
═══════════════════════════════════════════════════════════════════════════════
ISIN: JE00B6T5S470
Category Code: MSCH
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.: 145859
EQS News ID: 1290503
End of Announcement EQS News Service
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