Polymetal: Ore Reserves increase at Kyzyl (908863)
11 Novembre 2019 - 8:00AM
UK Regulatory
Polymetal International plc (POLY)
Polymetal: Ore Reserves increase at Kyzyl
11-Nov-2019 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 11 November 2019
Polymetal International plc
Ore Reserves increase at Kyzyl
Polymetal is pleased to announce an 18% increase in Ore Reserves at Kyzyl
gold deposit to 8.5 Moz of gold in accordance with the JORC Code (2012).
"We have concluded the first stage of extending open-pit life-of-mine at our
flagship operation. The next step is to estimate Ore Reserves at East
Bakyrchik in Q4 2020", said Vitaly Nesis, Group CEO of Polymetal.
? The updated JORC-compliant Ore Reserve estimate as of 1 July 2019
comprises 41.7 Mt of ore with an average grade of 6.3 g/t containing 8.5
Moz of gold. This represents an 18% increase in gold contained in
comparison with the reserves as at the end of 2018 1.
? Open-pit reserves increased by 37% to 4.2 Moz of gold contained at an
average grade of 5.7 g/t, while underground reserves were up 4% to 4.3 Moz
of gold contained at an average grade of 7.1 g/t.
? Total life of mine extended by 8 years (to 2047), while life of mine for
the open pit added 5 years (to 2031) in comparison with the previous
Feasibility Study estimate conducted in 2015 ("FS").
? The updated Ore Reserve estimate incorporates data from the drilling
campaign (additional 239 diamond drill holes, 41.5 km of drilling) which
resulted in extension of mineralization zones within the existing ore
bodies and update of the resource model.
? Cut-off grades decreased from 2.0 g/t to 1.0 g/t for the open pit and
from 3.7 g/t to 3.0 g/t for the underground compared to the previous FS.
The decline was driven by lower mining and processing costs based on
actual operational and economic data and lower concentrate processing and
transportation expenses which now take into account concentrate processing
at the Amursk POX.
? The new mining schedule assumes increased capacity of the Kyzyl
processing plant which grew from the originally designed 1.8 Mtpa to 2.0
Mtpa in 2019.
Ore Reserves (Proved + Probable) changes
Ore Reserves Category 01.01.2019[1] 01.07.2019 Change, %
Open pit Tonnage, Mt 13.6 22.9 +68%
Au grade, g/t 7.0 5.7 -19%
Au content, Moz 3.1 4.2 +37%
Underground Tonnage, Mt 15.1 18.8 +25%
Au grade, g/t 8.5 7.1 -16%
Au content, Moz 4.1 4.3 +4%
Total Tonnage, Mt 28.7 41.7 +45%
Au grade, g/t 7.8 6.3 -19%
Au content, Moz 7.2 8.5 +18%
Ore Reserves reconciliation, Moz
Ore Reserves, Depletion Revaluation Ore Reserves,
01.01.2019 01.07.2019
7.2 -0.2 +1.5 8.5
Notes: Discrepancies in calculations are due to rounding. This note applies
to all tables in this release.
ORE RESERVES
The Ore Reserve estimate is reported in accordance with the JORC Code (2012)
as at 1 July 2019 using a gold price of US$ 1,200/oz and was prepared by
Polymetal. A cut-off grade of 1.0 g/t of gold was applied for the open pit
and 3.0 g/t for the underground. Ore Reserves were estimated solely for Zone
1 of the Bakyrchik deposit, Zone 2 (East Bakyrchik) reserves were not
estimated.
Kyzyl Ore Reserves estimate as at 1 July 2019
Ore Reserves Tonnage, Gold grade, Gold content,
Mt g/t Moz
Proved
Open pit 1.2 6.3 0.3
Stockpiles 0.5 5.9 0.1
Total Proved 1.7 6.2 0.3
Probable
Open pit 21.2 5.7 3.9
Underground 18.8 7.1 4.3
Total Probable 40.0 6.3 8.1
Proved+Probable
Open pit 22.5 5.7 4.1
Underground 18.8 7.1 4.3
Stockpiles 0.5 5.9 0.1
Total Proved+Probable 41.7 6.3 8.5
MINERAL RESOURCES
The Mineral Resources estimate for Zone 1 is reported in accordance with the
JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and
was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied
for the open pit and 3.0 g/t for the underground. The Mineral Resources
estimate for Zone 2 was prepared by RPA Inc. in accordance with the JORC
Code (2012) as at 1 January 2015. Cut-off grades for the open pit and the
underground are 2.0 g/t and 3.7 g/t of gold, respectively. Revised estimate
for Zone 2 was not conducted due to the lack of material changes.
Kyzyl Mineral Resources estimate
Mineral Resources Tonnage, Gold grade, Gold content,
Mt g/t Moz
Indicated
Underground (Zone 1) 2.3 5.0 0.4
Total Indicated 2.3 5.0 0.4
Inferred
Open-pit 0.5 3.8 0.1
Zone 1 0.2 2.3 0.01
Zone 2 0.3 4.8 0.05
Underground 10.8 6.7 2.3
Zone 1 2.4 6.4 0.5
Zone 2 8.4 6.8 1.8
Total Inferred 11.4 6.6 2.4
Indicated + Inferred
Open-pit 0.5 3.8 0.1
Zone 1 0.2 2.3 0.01
Zone 2 0.3 4.8 0.05
Underground 13.1 6.4 2.7
Zone 1 4.7 5.7 0.9
Zone 2 8.4 6.8 1.8
Total Indicated + Inferred 13.6 6.3 2.8
Notes: Mineral Resources are additional to Ore Reserves.
ABOUT KYZYL
Kyzyl is a world-class asset located in north-eastern Kazakhstan in a
traditional mining region with good infrastructure and easy access to grid
power and the railway. In 2014, the asset was acquired by Polymetal. The
initial Feasibility Study and the updated Ore Reserve and Mineral Resource
estimates was completed by the Company in 2015.
The operation comprises the Bakyrchik refractory gold deposit and a
state-of-the-art 2.0 Mtpa processing plant employing conventional flotation
technology. The ultimate product of the production facility is flotation
concentrate. Low carbon concentrate is sent for processing to the Company's
POX facility in Amursk, while the high carbon concentrate currently goes to
third party off-takers. With the launch of POX-2, Polymetal intends to
process 100% of Kyzyl concentrate in-house.
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. Being a Member of the Institute of Materials,
Minerals & Mining (MIMMM), London, he is 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 - Victor Pchelka, Head of Production and
Geology Department, Polymetal Eurasia, PONEN, MIMMM, with 33 years'
relevant experience;
? Mining and Ore Reserves: Open Pit - Dmitriy Teterin, Head of Mineral
Resources and Ore Reserves Audit Department, Polymetal Engineering, MIMMM,
with 10 years' relevant experience; Underground - Andrei Somov, Head of
underground mining Department, Polymetal Engineering, MIMMM, with 31
years' relevant experience
? Concentration and Metals - Igor Agapov, Deputy Director of Science and
Technology, Polymetal Engineering, 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 (LSE, MOEX: POLY, ADR: AUCOY) (together with its
subsidiaries - "Polymetal", the "Company", or the "Group") is the 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.
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are based.
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[1] Previous JORC-compliant estimate was prepared by RPA Inc. as at
01.01.2015. Price: Au = US$1,200/oz. Revised estimate prepared by Polymetal
as at 01.01.2019 accounts only for depletion.
ISIN: JE00B6T5S470
Category Code: MSCM
TIDM: POLY
Sequence No.: 28204
EQS News ID: 908863
End of Announcement EQS News Service
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