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

Polymetal International PKAnnouncement

19/04/2021 07:05

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

   19-Apr-2021 / 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 IMMEDIATE                                                       
   time    LSE, MOEX, AIX: POLY / ADR: AUCOY
   Date    19 April 2021

    

    

   Polymetal International plc

   Tomtor initial Ore Reserve estimate

   Polymetal announces that its associate ThreeArc Mining Ltd. (ThreeArc,  in
   which Polymetal owns 9.1%) has  completed an initial Ore Reserve  estimate
   in accordance with the JORC Code (2012) for the Buranny area of the Tomtor
   niobium and rare-earth metals project (Tomtor).

   "Tomtor confirmed its scale  and grade as one  of the premier niobium  and
   rare earths deposits globally", said Vitaly Nesis, Group CEO of Polymetal.
   "The project team will now focus  on completion of a bankable  feasibility
   study, paving the way for the investment decision. Permitting issues and a
   Covid-related  slowdown  in  offshore  engineering  work  remain  the  key
   challenges for the project".

   HIGHLIGHTS

     • The initial Ore Reserve estimate as at 31 December 2019 comprises 11.4
       Mt of  ore available  for open-pit  mining at  6.0%  Nb2O5 1  1 +14.5%
       REO 2  2  grade (including 2.8%  of NdPr 3  3  oxides) containing  0.7
       Mt of Nb2O5 and 1.7 Mt of REO which makes Tomtor one of the top-3 rare
       earths projects globally by reserves.
     • The open pit mine will be operated in two roughly equal stages:

          ◦ Stage 1: 14 years of mining of niobium-rich ore with ore being
            stockpiled at the mine to provide feed sufficient for more than
            40 years of processing at Krasnokamensk Hydrometallurgical
            Facility (KHF). The ore will be dried on site and transported via
            a sequence of ice roads, barges, ships and rail to KHF.
            Accelerating mining and stockpiling ore is considered to be the
            most practical approach given the project's location.
          ◦ Stage 2: the open pit will recommence after the ore stockpiled
            during Stage 1 has been fully processed to complete mining and
            stockpile ore for a further 27 years of processing. The Stage 2
            feed will contain higher content of Rare Earth Elements (REE) and
            lower niobium grades.

     • The KHF  will be  built  near the  town  of Krasnokamensk  located  in
       South-Eastern Siberia  close  to  the  border  with  China  being  the
       location of Russia's  largest uranium mine  and associated  processing
       and tailings infrastructure that is expected  to be used to store  the
       waste generated by the plant.
     • The planned plant's throughput  is 160 Ktpa of  dry ore. The  facility
       will  produce  niobium   oxide  which  will   be  toll  converted   to
       ferroniobium, and a bulk REE carbonate concentrate which is  currently
       planned to be toll treated to produce Ce&La oxides, NdPr oxides and  a
       mixed medium-heavy rare earth carbonate.
     • The bankable feasibility study of  the project, including a number  of
       downstream processing flowsheet improvements is currently in progress.
       The process has been slowed down due to Covid-related challenges.
     • The completion of the feasibility  study and basic engineering of  the
       project will be contingent  on the state  approval of the  sustainable
       waste  management  concept  developed  for  the  project  and  of  the
       respective legislative changes.
     • Mineral Resources (additional to Ore Reserves) amount to 1.5 Mt of ore
       with an average grade of 4.8% Nb2O5+15.2% REO grade representing  0.07
       Mt of Nb2O5 and 0.2 Mt of REO.
     • The Ore Reserve and Mineral Resource audit prepared by SRK  Consulting
       (Russia) Ltd is the first independent audit of the Tomtor project.

    

   ORE RESERVE AND MINERAL RESOURCE STATEMENT

   The  Ore  Reserve  and  Mineral  Resource  estimates  are  classified   in
   accordance with the  JORC Code  (2012) as  at 31 December  2019 using  the
   following prices: US$ 23.9/kg of Nb2O5, US$ 53.5/kg of Pr6O11, US$ 48.5/kg
   of Nd2O3, US$ 20.80  / kg carbonate concentrate  of medium and heavy  rare
   earths (Sm, Eu,  Gd, Tb,  Dy, Ho, Er,  Tm, Yb,  Lu, Y) and  at 7.8%  Nb2O5
   Equivalent cut-off grade.  Any discrepancies  in calculations  are due  to
   rounding.

   Tomtor Ore Reserve estimate

                Tonnage           Grade                     Content
                                      REO                        REO
                        Nb2O5  NdPr   Other  Total Nb2O5  NdPr   Other  Total
                  Mt                   REO                        REO
                          %   oxides          REO   Kt   oxides          REO
                                        %                          Kt
                                 %             %           Kt            Kt
   Probable                                                                
   Stage 1        7.0    6.7   2.5    10.7   13.2   470   173     747    920
   Stage 2        4.4    5.0   3.1    13.6   16.7   220   134     606    740
   Total         11.4    6.0   2.8    11.7   14.5   690   306    1,354  1,660
   Probable

   Tomtor Additional Mineral Resource estimate

                    Tonnage          Grade                   Content
                                         REO                      REO
                            Nb2O5  NdPr  Other Total Nb2O5  NdPr  Other Total
                      Mt          oxides  REO   REO        oxides  REO   REO
                              %                       Kt
                                     %     %     %           Kt     Kt    %
   Indicated         0.06    5.9   2.4   10.9  13.3    4     1      7     8
   Inferred           1.4    4.7   2.8   12.5  15.3   68     40    180   220
   Total Indicated    1.5    4.8   2.8   12.4  15.2   72     41    187   228
   + Inferred

   ABOUT TOMTOR

   Tomtor is located in the north-west of  Yakutia. It is one of the  largest
   and  highest  grade  rare  earth  elements  (REE)  projects  globally  and
   considered to be the highest grade development stage niobium (Nb)  project
   in the world. The  deposit was discovered in  1977 with initial  statutory
   reserves approved in 1999. In 2013, ICT established ThreeArc Mining  Ltd.,
   a subsidiary of which purchased the Tomtor license subsequently. In  March
   2020, Polymetal acquired a 9.1% stake in ThreeArc for US$ 20 million.  The
   proceeds were  allocated  to  developing  the  Pre-Feasibility  Study  and
   preparing the initial Ore Reserve and Mineral Resource estimate.

   Competent persons

   The Ore Reserves estimate  was compiled by David  Pearce, who is  employed
   full-time by SRK Consulting (Russia) Ltd, as a Principal Mining Consultant
   and Managing Director. Mr Pearce is a Fellow of the Australasian Institute
   of Mining and Metallurgy (AusIMM), and has sufficient experience  relevant
   to the mining method and type  of deposit under consideration, and to  the
   engineering solutions proposed for developing the project, to qualify as a
   Competent Person as defined by the 2012 edition of the "Australasian  Code
   for Reporting of Exploration Results, Mineral Resources and Ore  Reserves"
   (JORC Code).

   The Mineral  Resource  estimate was  compiled  by Robin  Simpson,  who  is
   employed  full-time  by  SRK  Consulting  (Russia)  Ltd,  as  a  Principal
   Consultant (Resource Geology). Mr  Simpson is a  Member of the  Australian
   Institute of Geoscientists (AIG),  and has sufficient experience  relevant
   to the style of mineralisation and type of deposit under consideration and
   to the activity which he is  undertaking to qualify as a Competent  Person
   as defined by the 2012 edition of the "Australasian Code for Reporting  of
   Exploration Results, Mineral Resources and Ore Reserves" (JORC Code).

   The 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

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                                             +7 812 334 3666 (Russia)
                                  Kirill
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       Joint Corporate Brokers         
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   International plc      8000

   Andrew Foster                  RBC Europe
                                  Limited
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   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
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   forward-looking statements  all include  matters that  are not  historical
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   unknown risks,  uncertainties  and  other  important  factors  beyond  the
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   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
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   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
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   disclaims any  obligation or  undertaking to  disseminate any  updates  or
   revisions to any  forward-looking statements contained  herein to  reflect
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   based.

    

    

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    5  1  Niobium oxide.

    6  2  Rare earth oxides.

    7  3  Nd - Neodymium, Pr - Praseodymium.

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   ISIN:          JE00B6T5S470
   Category Code: MSCM
   TIDM:          POLY
   LEI Code:      213800JKJ5HJWYS4GR61
   Sequence No.:  99733
   EQS News ID:   1185950


    
   End of Announcement EQS News Service

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