REG-Polymetal International plc Polymetal: Updated mineral resource estimate for Viksha deposit  

Polymetal International PKAnnouncement

30/09/2019 07:05

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   Polymetal International plc (POLY)
   Polymetal: Updated mineral resource estimate for Viksha deposit  

   30-Sep-2019 / 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         30 September 2019

    

    

   Polymetal International plc

   Updated mineral resource estimate for Viksha deposit  

   Polymetal announces  the updated  Mineral Resource  estimate in  accordance
   with the JORC Code (2012) for Viksha PGM deposit. Resources at the property
   now stand at 5.7 Moz of palladium equivalent (PdEq).

   "We have confirmed Viksha's potential as a large open-pittable deposit. The
   goal is to complete the feasibility study and publish a reserve estimate in
   1H 2021", said Vitaly Nesis, Group CEO of Polymetal.

   HIGHLIGHTS

     • The new estimate  incorporates data from  359 additional diamond  drill
       holes (44,349 m) completed by Polymetal in 2017-2018. Cut-off grade  is
       0.5 g/t of PdEq.
     • The total amount of 4 metals contained  is 5.7 Moz of PdEq (6.1 Moz  of
       3E) at an average grade of 1.1 g/t of PdEq (1.1 g/t of 3E).
     • The share of  Measured and  Indicated Resources increased  from 13%  to
       65%.
     • Average reef width is 8 m.
     • Palladium represents  67%, platinum  -  12% and  gold  - 10%  of  total
       resource value, respectively. 
     • Maximum pit  depth is  300  m below  surface with  average  preliminary
       stripping ratio of 10.7 t/t.
     • Next steps  -  met  testing  (recovery  increase),  statutory  resource
       certification, other FS work streams.

   Viksha Open Pit Mineral Resources estimate as at 5 September 2019

          Tonnage             Grade                         Content
                    Au, Pt, Pd, Cu,  PdEq, 3E,   Au,  Pt,  Pd,  Cu,  PdEq, 3E,
              Mt    g/t g/t      %         g/t                             Moz
                            g/t       g/t        Moz  Moz  Moz  Kt    Moz
   Measured    7    0.1 0.3 0.8 0.09  1.1  1.2   0.03 0.06 0.2  6.5   0.2  0.3
   Indicated  101   0.1 0.3 0.7 0.10  1.1  1.1   0.5  0.8  2.4 96.2   3.5  3.7
                                                                             
   Measured+
              107   0.1 0.3 0.7 0.10  1.1  1.1   0.5  0.9  2.6 102.7  3.7  4.0
   Indicated
                                                                             
   Inferred   57    0.1 0.3 0.7 0.10  1.1  1.1   0.3  0.5  1.4 58.4   2.0  2.1
    

   Measured+  165   0.1 0.3 0.7 0.10  1.1  1.1   0.8  1.4  3.9 161.0  5.7  6.1

   Indicated+
   Inferred
                                                                            

   Notes: Mineral resources are  provided in accordance  with the JORC  (2012)
   with a cut-off grade of palladium equivalent 0.5 g/t. The PdEq formula  is:
   PdEq = Pd(g/t) +  Pt(g/t)*0.43 + Au(g/t)*0.68+ Cu(%)*1.32,  at Pd price  of
   $1,500/oz, Pt price of $800/oz, Au price of 1,200/oz, Cu price of $6,000/t.

   ABOUT VIKSHA

   The Viksha  is a  PGM-copper deposit  located in  the Republic  of  Karelia
   (North-West  Russia)  approximately  450   km  from  St.  Petersburg.   The
   infrastructure in  the area  is well  developed with  easy access  to  grid
   power, paved roads, and railway. Polymetal's 100%-owned subsidiary holds  a
   20-year mining licence for a project area of 47 km2.

   GEOLOGY

   The property lies near the centre of the southern Karelian Craton which  is
   situated within the  Archaean granite-greenstone terrain,  adjacent to  the
   lower Proterozoic Onega trough.

   The Viksha deposit comprises of three adjacent areas within the  north-west
   limb of the syncline  structure: Viksha proper, Kenti,  and Shargi. All  of
   them contain platinum, palladium, gold and copper mineralisation within the
   Koikar sill gabbro-dolerites. The  outcrop of reef-type mineralisation  has
   been traced for over 20 km.

   Viksha mineralisation is localized within the stratified sill rocks at  the
   boundary between the lower  gabbro and the upper  dolerite zones. The  sill
   has a maximum  thickness of  approximately 235 m.  The underlying  dolomite
   sediments are 40-50 m thick. Mineralised zones are clearly stratified  with
   gold and copper predominance in the upper part, and palladium in the  lower
   part of the mineralisation. The platinum-palladium-gold-enriched layer lies
   approximately 45 m above the sediments. The reef thickness is 5-11 m.

   The near-surface reef-shaped mineralisation forms contiguous ore bodies  of
   considerable width and  is amenable  to low-cost  mechanised bulk  open-pit
   mining. The  shallow dip  of  mineralised zones  enables selection  of  the
   acceptably low stripping ratios.

   MINERALOGY

   Mineralisation at the Viksha project is associated with titanium-magnetite,
   chalcopyrite, and bornite. The most abundant species are Pt arsenide and Pd
   tellurides. The  PGM  grain  size  is  5-9  μm;  most  PGM  are  locked  or
   exposed/attached to Cu sulphides,  Fe oxides/spinel/ilmenite, and  silicate
   minerals.  In  contrast,  the  gold  minerals,  consisting  dominantly   of
   gold-bearing silver and electrum are coarser-grained.

   Favourable  mineralogy  (without  nickel)  enables  conventional  flotation
   process producing bulk copper-PGM sulfide concentrate that can be processed
   through either PGM refineries or copper smelters with PGM circuit.

   Competent persons

   This estimate was prepared by employees of JSC Polymetal Management Company
   and JSC  Polymetal Engineering,  subsidiaries of  the Company,  led by  Mr.
   Valery Tsyplakov.

   Mr. Tsyplakov  is  employed  full-time  as the  Managing  Director  of  JSC
   Polymetal Engineering  and has  more  than 18  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 other 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 -  Roman  Govorukha, Head  of  Geologic
       Modelling and  Monitoring Department,  MIMMM, with  18 years'  relevant
       experience;
     • Mining and  Ore  Reserves  -  Igor Epshteyn,  Head  of  Mining  Process
       Department, FIMMM, with 37 years' relevant experience;

     • Concentration and Metals - Igor Agapov, Deputy Director of Science  and
       Technology, MIMMM, with 21 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  (LSE, MOEX, AIX:  POLY, ADR: AUCOY)  (together
   with its subsidiaries -  "Polymetal", the "Company", or  the "Group") is  a
   top-20 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
                               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  +44 20 7425
                   8000
   Andrew Foster               RBC Europe
                               Limited
   Richard Brown
                               Marcus Jackson +44 20 7653 4000
   Panmure Gordon
                               Jamil Miah
   Charles Lesser
                   +44 20 7886
   James Stearns   2500

    

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   ISIN:          JE00B6T5S470
   Category Code: MSCM
   TIDM:          POLY
   Sequence No.:  21664
   EQS News ID:   881815


    
   End of Announcement EQS News Service

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References

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   1. mailto:ir@polymetalinternational.com


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