Polymetal International PLC Ore reserves increase at Komar gold deposit (2847T)
October 11 2017 - 2:00AM
UK Regulatory
TIDMPOLY
RNS Number : 2847T
Polymetal International PLC
11 October 2017
Release time IMMEDIATE
Date 11 October 2017
Polymetal International plc
Ore reserve increase at Komar
Polymetal International plc (LSE, MOEX: POLY; ADR: AUCOY)
(together with its subsidiaries - "Polymetal", the "Company", or
the "Group") is pleased to report a significant increase in Ore
Reserves at the Komar gold deposit in Kazakhstan.
The updated reserve estimate was prepared under 2012 JORC
standards and incorporates data from 387 diamond drill holes
completed after Polymetal had agreed to acquire the asset in Q2
2016. In total, the exploration campaign comprised of 68,016 m of
diamond drilling.
As a result, reserves have grown by 535 Koz of gold while the
grade remained stable at 1.8 g/t. Most of the additional ounces
represent an upgrade and conversion of inferred resources in the
southern part of the property, as well as new mineralised material
discovered along strike in the extreme northern part of the
5km-long deposit. The re-designed open pit has a stripping ratio of
13 mt/mt, roughly at the same level as the previously designed open
pit. The maximum mining depth remained unchanged at 190 m below the
surface level. Mineralisation is open along strike in the northerly
direction and down-dip in the southern part of the deposit.
Polymetal now plans to mine, transport by rail and process
approximately 2 Mt of Komar ore per year at the Varvara processing
plant. This compares with the 1 Mt per annum ore production rate
envisaged at the time of the acquisition. During the first 9 months
of 2017, 1.4 Mt of Komar ore was processed at Varvara. The
additional Komar ore will displace the lower-grade material from
the Varvara deposit and consequently, increase production and
result in lower costs at the Varvara processing hub. Mine-to-mill
transportation costs for Komar ore are low and comprise
approximately US$4.5 per tonne. This makes processing Komar ore at
the existing plant at Varvara a superior option compared to the
construction of a new on-site processing facility in terms of
return on invested capital (ROIC).
Total upgraded Ore Reserves are estimated as at 1 June 2017 at
24 Mt of ore with a grade of 1.8 g/t for 1.4 Moz of gold contained.
This represents a significant increase over the previous estimate
with a 60% increase in tonnage and a 57% increase in gold content,
further extending the Varvara hub mine life by 3 years, until
2032.
Komar Ore Reserves
Ore Reserves Category 01.01.2017 01.06.2017 Change, %
------------------- --------------- ----------- ----------- ----------
Proved Tonnage, Kt 2,030 4,660 +130%
Au grade, g/t 1.1 1.6 +45%
Au content,
Koz 74 236 +218%
Probable Tonnage, Kt 12,970 19,390 +49%
Au grade, g/t 1.9 1.8 -5%
Au content,
Koz 799 1,138 +42%
Proved + Probable Tonnage, Kt 15,000 24,050 +60%
-------------------
Au grade, g/t 1.8 1.8 0%
Au content,
Koz 873 1,374 +57%
----------------------------------- ----------- ----------- ----------
Notes: Ore Reserve estimate using Au= US$1,200/oz price. Ore
Reserves are reported in accordance with the JORC Code (2012).
Discrepancies in calculations are due to rounding.
Ore Reserve reconciliation, Koz of gold
Ore Reserves, 01.01.2017 Depletion Revaluation Ore Reserves, 01.06.2017
------------------------ --------- ----------- ------------------------
873 -35 535 1,374
------------------------ --------- ----------- ------------------------
"We are very happy about the positive exploration results at
Komar. The reserve expansion, increased processing capacity and
associated economies of scale have far outstripped our expectations
at the time of the acquisition. Polymetal plans to continue
exploration at Komar with the goal to further extend the
life-of-mine of the Varvara hub", said Vitaly Nesis, Group CEO of
Polymetal.
Enquiries
Media Investor Relations
------------------ ------------------ ----------------------------------------------------
FTI Consulting +44 20 3727 1000 Polymetal ir@polymetalinternational.com
Leonid Fink Evgenia Onuschenko +44 20 7016 9505 (UK)
Viktor Pomichal Maryana Nesis
Michael Vasiliev +7 812 334 3666 (Russia)
------------------ ------------------ -------------------- ------------------------------
Joint Corporate Brokers
-------------------------------------- ----------------------------------------------------
Morgan Stanley
Sam McLennan
Richard Brown +44 20 7425 8000
Panmure Gordon RBC Europe Limited
Adam James Tristan Lovegrove
Tom Salvesen +44 20 7886 2500 Marcus Jackson +44 20 7653 4000
------------------ ------------------ -------------------- ------------------------------
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