REG-Polymetal International plc Polymetal: Pesherny initial Ore Reserve estimate

Polymetal International PKAnnouncement

06/11/2020 07:00

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   Polymetal International plc (POLY)
   Polymetal: Pesherny initial Ore Reserve estimate

   06-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         06 November 2020

    

    

   Polymetal International plc

   Pesherny initial Ore Reserve estimate

   Polymetal reports initial Ore Reserve estimate for Pesherny deposit  (Voro
   hub) of 0.4 Moz of gold.

   "Establishing high-grade reserves for Pesherny is an important achievement
   in extending  Voro's  life-of-mine",  said  Vitaly  Nesis,  Group  CEO  of
   Polymetal.

   HIGHLIGHTS

     • The initial  JORC-compliant Ore  Reserve estimate  as at  1 July  2020
       comprises 2.1  Mt  of  ore with  an  average  gold grade  of  6.0  g/t
       containing 399 Koz of gold.
     • The reserve  estimate  assumes 7  years  of open-pit  and  underground
       mining which is expected to commence in Q3 2021.
     • 90% of  the reserves  are represented  by primary  ore which  will  be
       processed at the  Voro flotation plant  (under construction, start  of
       production in Q1 2023). Refractory gold concentrate will be treated at
       Amursk POX-2. Oxide  ore will be  processed at the  existing Voro  CIP
       plant.
     • Life-of-mine production from refractory material is expected to amount
       310 Koz of gold. Average  annual production in 2023-2027 is  estimated
       at roughly 55 Koz of gold at AISC of US$ 450-500/oz.
     • Mineral Resources (additional to Ore Reserves) amount to 0.5 Mt of ore
       with an average  gold grade  of 6.5 g/t  representing 97  Koz of  gold
       contained.

   ORE RESERVE AND MINERAL RESOURCE STATEMENT

   The Ore Reserve and Mineral Resource estimates are reported in  accordance
   with the JORC  Code (2012) as  at 1 July  2020 using a  gold price of  US$
   1,200/oz and were prepared by Polymetal. For primary ores a cut-off  grade
   of 0.8 g/t and 2.4 g/t gold was applied for open pit and for  underground,
   respectively. For oxidised  ores a cut-off  grade of 0.6  g/t of gold  was
   used.

   Pesherny Initial Ore Reserve estimate

                  Tonnage, Au grade, Au content,            
   Ore Reserves 
                     Kt       g/t              Koz
   Probable                                      
   Open-pit        1,340      5.4              232
    Oxidised ore    210       4.3              28
    Primary ore    1,130      5.6              204
   Underground      730       7.1              167
   Total Probable  2,070      6.0              399

   Notes: discrepancies in calculations are due to rounding.

    

    

   Pesherny Additional Mineral Resource estimate

   Mineral Resources (additional to Ore        Tonnage, Au grade, Au content,
   Reserves)
                                                  Kt       g/t        Koz
   Indicated                                                            
   Underground                                    90       6.9        21
   Total Indicated                                90       6.9        21
                                                                        
   Inferred                                                             
   Open-pit                                       20       2.3         1
    Oxidised ore                                  10       2.0         1
    Primary ore                                   10       3.1         1
   Underground                                   350       6.7        75
   Total Inferred                                370       6.4        77
                                                                        
   Indicated + Inferred                                                 
   Open-pit                                       20       2.3         1
    Oxidised ore                                  10       2.0         1
    Primary ore                                   10       3.1         1
   Underground                                   440       6.7        96
   Total Indicated + Inferred                    460       6.5        97

   Notes: discrepancies in calculations are due to rounding.

   ABOUT PESHERNY

   Pesherny is a refractory gold deposit discovered by Polymetal in 2017.  It
   is located in  Russia's Sverdlovsk  region, approximately 10  km from  the
   city of Krasnoturinsk and 15 km from Polymetal's Voro production site. The
   industrialised and moderately populated area around the deposit is home to
   several mining  companies, ensuring  good  access to  the grid  and  other
   infrastructure.

   The deposit lies in  the peripheral part  of the Turinsky  volcanotectonic
   depression. Metasomatically altered mineralisation zone is located at  the
   steep contact area of volcanic-sedimentary  rocks with a basalts layer.  A
   series of gold-containing oxidised and  primary ore deposits are  detected
   and tracked within  the mineralisation  zone. Plan  view the  ore zone  is
   stretched to the north-east, has a strike length of up to 360 m and  width
   of 30-120 m. Section view it dips to the south-east at an average angle of
   68 degrees and has  a length of  330 m with width  of 40-70 m.  Morphology
   wise ore bodies  have lens and  bedding plane form  with contractions  and
   swells  and   heterogeneous   internal   structure.   Mineralisation   has
   disseminated and vein-disseminated characteristics.

   Competent persons

   This estimate  was  prepared  by employees  of  JSC  Polymetal  Management
   Company and JSC Polymetal Engineering, led by Mr. Vladislav Kolosov.

   Mr. Kolosov is  the employed full-time  as the Deputy  Head of  Production
   Department at Polymetal  Management Company  and has more  than 20  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  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  - Andrey  Gottman,  Chief  Operations
       Geologist at the Ural branch  of Polymetal Management Company,  member
       of  National  Association  for  Natural  Resources  Expert   Appraisal
       (NAEN),  with 20 years' relevant experience;
     • Mining and Ore Reserves - Vladislav Kolosov, Deputy Head of Production
       Department at  Polymetal Management  Company,  MIMMM, with  20  years'
       relevant experience;
     • Concentration and Metals -  Nikolay Rylov, Head  of the Laboratory  at
       Polymetal Engineering, MIMMM, with 13 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.

   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

   Daniel Norman                  Jamil Miah

   John Prior             +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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   ISIN:          JE00B6T5S470
   Category Code: MSCM
   TIDM:          POLY
   Sequence No.:  87330
   EQS News ID:   1145957


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:ir@polymetalinternational.com


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