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

Polymetal International PKAnnouncement

17/09/2020 07:00

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

17-Sep-2020 / 09:00 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         17 September 2020

 

 

Polymetal International plc

Prognoz initial Ore Reserve estimate

Polymetal announces initial JORC-compliant Ore Reserve estimate for Prognoz of 142 Moz of silver ("Ag")  at
560 g/t.

"The estimate confirms that Prognoz is one of  the best silver development projects globally", said  Vitaly
Nesis, CEO of Polymetal. "We will continue to advance the project towards development".

Highlights

  • The initial JORC-compliant open-pit  Ore Reserve estimate as  at 1 March 2020  comprises 7.9 Mt of  ore
    with an average  Ag grade of  560 g/t containing  142 Moz of  silver. Reserves have  been assessed  for
    Glavnaya (Main), Boloto (Swamp) and Yuzhnaya (Southern) ore zones only.
  • Reserve estimate is based on US$ 15/oz silver price with silver representing approximately 90% of value
    contained at this price level.
  • Mineral Resources additional to Ore  Reserves are estimated at 5.6  Mt of mineralized material with  an
    average grade of 552 g/t for 100 Moz of silver contained.
  • The Preliminary  Feasibility Study  assumes 9  years  of open-pit  mining with  conventional  flotation
    flowsheet producing clean high-grade concentrate.
  • The Company expects average annual production of 13.5 Moz of payable silver at AISC in the range of US$
    8-9/oz.
  • Total project's capital  expenditures are  expected to  amount to US$  319 million  comprising US$  250
    million of  pre-production CAPEX  (including pre-stripping  costs) and  US$ 69  million of  maintenance
    CAPEX.

ORE RESERVE AND MINERAL RESOURCE STATEMENT

Prognoz Open Pit Ore Reserves 1  1 

         Tonnage, Ag Grade, Ag Content,
    
            Mt       g/t        Moz
Probable   7.88      560        142

 Prognoz Additional Mineral Resources 2  2 

                     Tonnage, Ag Grade, Ag Content,
          
                        Mt       g/t        Moz
Indicated                                       
Open Pit               1.67        519         28
Underground            0.98        508         16
Total Indicated        2.65        515         44
                                                
Inferred                                        
Open Pit               2.17        626         44
Underground            0.79        475         12
Total Inferred         2.96        585         56
                                                
Indicated + Inferred                            
Open Pit               3.84        579         72
Underground            1.77        493         28
Total                  5.61        552        100
Indicated + Inferred
                                              

ABOUT PROGNOZ

Prognoz is  the largest  undeveloped  primary silver  deposit in  Russia.  The license  is located  in  the
Verkhoyansk municipal  district  in the  Republic  of Sakha  (Yakutia),  Russia. The  property  is  located
approximately 980 km from the regional  center of Yakutsk (population of 300,000)  and 720 km by road  from
Polymetal's Nezhda project.

Silver-copper-lead-zinc mineralization, represented  by quartz-carbonate-sulphide  veins, is  located in  a
sequence of sedimentary rocks composed  of Triassic sandstones and  siltstones. Nine mineralised zones  are
defined, with Main and Swamp being the largest.  Mineralized material is partially oxidised with the  depth
of weathering varying  widely dependent  on relief  and proximity of  water table.  The deposit  lies in  a
mountainous region with elevations  ranging from 300  m - 1,100  m above sea  level. The local  topographic
relief in the area of the exploration ranges in elevation from 300 m to 350 m.

In April  2018,  Polymetal  consolidated  100%  in  the asset.  In  October  2018,  the  Company  completed
JORC-compliant Mineral Resource estimate of 237 Moz of silver at 731 g/t.

Competent persons

The information in this  report that relates  to the Mineral  Resources is based  on and fairly  represents
information which has been  compiled by Dmitry Pertel.  Mr. Pertel is employed  full-time as the  Principal
Resource Geologist at CSA Global Pty Ltd. He is a member of the Australian Institute of Geoscientists.

The information in  this report  that relates  to quality assurance/quality  control analysis  is based  on
information compiled by Vladimir Kiskin. Mr. Kiskin is employed full-time as the Head of Mineral  Resources
Department at Polymetal  International Plc.  He is a  Fellow of  the Institute of  Materials, Minerals  and
Mining.

The information  in this  report  that relates  to  the Ore  Reserves is  based  on and  fairly  represents
information which has been compiled  by Mr Paul O'Callaghan. Mr.  O'Callaghan is employed full-time as  the
Principal Mining Engineer at CSA Global Pty Ltd. He is a Fellow of the Australasian Insitute of Mining  and
Metallurgy.

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 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           3 ir@polymetalinternational.com
FTI Consulting
                                                        Evgeny Monakhov    +44 20 7887 1475 (UK)
Leonid Fink                            +44 20 3727 1000
                                                        Timofey Kulakov     
Viktor Pomichal
                                                        Kirill Kuznetsov   +7 812 334 3666 (Russia)
    Joint Corporate Brokers                                  
Morgan Stanley & Co. International plc +44 20 7425 8000

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

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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 4  1  This table represents  the Ore Reserve estimate  as at 1  March 2020 for silver  only using the  US$
15/oz silver price. Full  disclosure of Ore Reserve  estimate in accordance with  JORC Code (2012) will  be
soon   available    in   the    CSA   report    on   our    web   site    in   the    Results   center    -
 5 https://www.polymetalinternational.com/en/investors-and-media/reports-and-results/result-centre/#tab-25.

 6  2  This table represents Mineral Resource estimate as at  1 March 2020 for silver only using US$  15/oz
silver price.  Discrepancies in  calculations are  due to  rounding. Full  disclosure of  Mineral  Resource
estimate in accordance with JORC Code (2012)  will be soon available in the  CSA report on our web site  in
the                              Results                              center                              -
 7 https://www.polymetalinternational.com/en/investors-and-media/reports-and-results/result-centre/#tab-25.

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   ISIN:          JE00B6T5S470
   Category Code: MSCM
   TIDM:          POLY
   Sequence No.:  84299
   EQS News ID:   1132757


    
   End of Announcement EQS News Service

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