PLZL.L Regulatory News (PLZL)

10 Dec 2007 15:29

OJSC Polyus Gold10 December 2007 For immediate release Moscow, December 10, 2007 Polyus Gold acquires licence on Doroninskoye ore field in Magadan region. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,announces that it has won an auction on entrails usage licence for Doroninskoyeore field in Magadan region. Magadan Exploration ltd., a wholly owned subsidiary of Polyus Gold, participatedin the auction on Doroninskoye ore field held on December 10, 2007, andsuggested final price. The acquisition of the licence was done as part of thelong-term exploration programme of Polyus Gold. The price of the licenceamounted to 18.7 million rubles (approx. $720 000). Doroninskoye ore field is located in Khassynkiy district of Magadan region. Thetotal area of the field is 79 square kilometers. The field's resources under P1category (Russian classification), according to TsNIGRI (Central explorationresearch institute for non-ferous and precious metals), are estimated at 5.5tonnes of gold, 1,340 tonnes of silver and 4,800 tonnes of tin. Explorationworks at Doroninskoye ore filed in 2008-2012 will require approximately 75million rubles ($2.9 million). "We expect that our exploration works at the deposit will result in thediscovery of a significant gold-silver mineralization on flanks of theore-bearing system, which will substantially increase gold resources potentialof the deposit, - Mr. Ivanov said. According to him, Doroninskoye ore field is avaluable addition to the project portfolio of Magadan Exploration. "The stage ofthe deposit's development gives ground to expect substantial reserves increaseafter completing the exploration programme" - Mr. Ivanov noted. SeparatelyEvgueni Ivanov noticed that in less then half a month Polyus Gold anticipatoryenhanced its mineral base through the acquisition of 4 new licences forexploration fields. Those ore fields with combined resources of over 190 tonnesof gold (P1+P2+P3) are located in the key areas of the company's operations -Krasnoyarsk, Irkutsk and Magadan regions. In all those regions the company hasalready established firm industrial, infrastructural and exploration base, andwe will continue to be focusing on enhancing our presence there. Note for editors: Polyus Gold is the largest gold producer in Russia. In 2006 its gold outputtotaled 1.2 million ounces. Headquartered in Moscow, Polyus Gold's operatingmines and development/exploration projects are located in five major gold miningregions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republicof Sakha (Yakutia). For further information please contact For press: Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 pr@polyusgold.com For investors: Alexey V. Chernushkin, Director, CM and IREvguenia V.Buydina, IR manager+7(495) 641-3377+7(495) 785-4031 ir@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange