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

Polymetal International PKAnnouncement

20/01/2022 07:05

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

   20-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    20 January 2022

    

    

   Polymetal International plc

   Pavlov initial Mineral Resource estimate

   Polymetal announces an  initial JORC-compliant  Mineral Resource  estimate
   for the Pavlov property of 0.7 Moz of gold.

   "Substantial high-grade  open-pit  resources at  Pavlov  demonstrates  the
   success of Polymetal's approach to greenfield exploration. We started from
   scratch and delivered a six-year LOM extension for Voro for less than  US$
   5 million. The  potential for a  standalone operation is  also high as  we
   continue drilling", said Vitaly Nesis, Group CEO of Polymetal.

   Highlights

     • The initial open-pit Mineral Resource estimate as at October 1st, 2021
       comprises 9.7 Mt of mineralised material  with an average Au grade  of
       2.7 g/t containing 0.7 Moz of gold. Resource estimate is based on  US$
       1,500/oz gold price.
     • The deposit is represented by free-milling ore which can be  processed
       at Polymetal's Voro and Varvara mills.
     • The resource estimate  is based on  data from 142  drill holes with  a
       total length of  14.9 km  completed by Polymetal  in 2020-2021.  Total
       exploration capital costs amounted to  US$ 4.8 million, an average  of
       US$ 7 per ounce of gold resources.

   MINERAL RESOURCE STATEMENT

   The Mineral Resource estimate is reported in accordance with the JORC Code
   (2012) and  was prepared  by Polymetal  as  at 1  October 2021  using  US$
   1,500/oz gold  price. A  cut-off grade  of  0.9 g/t  was applied  for  the
   primary ore  and  1.0 g/t  for  the  oxidized ore.  Any  discrepancies  in
   calculations are due to rounding.

   Pavlov Mineral Resources

                              Tonnage, Au Grade, Au Content,
                
                                 Mt       g/t        Koz
   Indicated (Open-pit)         2.4         3.3        257
   Inferred (Open-pit)          7.2         2.0        471
   Total Indicated + Inferred   9.7         2.3        727
                                                       

   ABOUT Pavlov

   Pavlov deposit  is located  in  the Nizhnyaya  Salda municipality  of  the
   Sverdlovsk region (population of 18,000), 7 km east from the city  limits.
   The property is 330 km away from Voro and 740 km from Varvara by  railway.
   The region is  characterized by  low agricultural  population density  and
   excellent  industrial  infrastructure  (grid  power,  railways  and  paved
   highways).

   Presence of gold in  the region was first  discovered in 2005-2007 in  the
   course of  government-funded advanced  geochemical exploration.  In  2018,
   Polymetal's   analysed   publicly   available   exploration   report   and
   successfully applied for  the 65  km2 license  area on  "first come  first
   served" basis.

   In 2019, the Company carried out geochemical exploration. As a result,  an
   intense gold geochemical anomaly was localized, which was confirmed by  RC
   drill holes.  Subsequently, a  preliminary  assessment of  the  identified
   mineralisation was carried out along strike and to the depth of up to  100
   m using diamond core drill holes on a wide-spaced grid. In 2020-2021,  the
   evaluation of the Pavlov along  the strike and to a  depth of up to 200  m
   continued with drilling on a regular 80-40x40 m grid.

   Mineralisation is  localised  in  the contact  zone  between  altered  and
   volcanogenic-sedimentary  rocks.  It  is   represented  by  a  series   of
   medium-dip (30-45 degrees) structures  with an average true  width of 8  m
   and a length of up to 1 km. Mineralised zones are characterised by intense
   carbonate-quartz alteration with disseminated sulfides (1 to 8%).

   The potential parameters  of the  open pit  used to  estimate the  Mineral
   Resources are as follows: length - 1,200 m, width - 575 m, depth - 170 m.

   The metallurgical properties of mineralized  material make it possible  to
   apply conventional  whole-ore  cyanidation  (CIP). 635  ore  samples  were
   tested by Polymetal  Engineering to estimate  potential gold recovery  and
   other process characteristics.  Gold recovery  in the  tests averaged  88%
   with cyanide consumption of less than 1 kg/mt.

   Potential increases in Mineral Resources at Pavlov and adjacent areas  are
   associated with  known geophysical  resistivity anomalies  bearing  strong
   similarity to the geophysical signature of the main mineralised zone. 

   The next milestones at the property include:

    1. Mineral Resource update in Q1 2023
    2. Initial Ore Reserve estimate in Q3 2023
    3. Mining license approval in Q4 2023
    4. PFS of property development in Q1 2024

   Figure 1 Pavlov geological cross-section 

    

   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
                                              1 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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   Attachment

   File:  2 Polymetal: Pavlov 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.:   137670
   EQS News ID:    1270588


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:ir@polymetalinternational.com
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