24 Jul 2008 09:43
For immediate release Moscow, July 24, 2008
Press-release
OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer, today announces the launch of the pilot plant at Natalka mine in the Magadan region, one of the largest mine in Russia.
The hard rock Natalka gold deposit is located in the Magadan region in the basin of river Omchak. OJSC Matrosov Mine, a subsidiary of OJSC Polyus Gold, holds exploration and mining licenses for Natalka. Proven and Probable reserves of Natalka equal to 40.8 m oz (1 270.6 tonnes) of gold. The company plans commissioning of new mill at Natalka, which to be the largest mill in Russia with the capacity of 30 million tonnes of ore per annum and planned production of 40 tonnes of gold per annum.
The decision on constructing of the pilot plant was first time taken in 2006.
This pilot plant is a high-tech plant, constructed with the use of up-to-date technologies and modernly equipped. The plant has a standalone laboratory complex, which allows analyzing ore and products of ore processing on the unique equipment for Russia. The schedule of works of the pilot plant plans to conduct tests by several technological schemes of ore dressing and hydrometallurgical processing of ore concentrates.
The mill capacity to be 120 000 - 130 000 tonnes of ore per annum. Total investments in pilot plant construction equal to RUR 570 million (appr. USD 24.4 million). Additional RUR 125 million (USD 5.4 million) the company plans to invest in mill operations and R&D works in 2008.
As it was noted by General Director of Polyus Gold Evgueni Ivanov: "The pilot plant is designed to work out and test core technical decisions for the projected Natalka mill. The pilot plant will allow to select the most effective method of ore processing technology, which will be put in commercial production in future".
Evgueni Ivanov added that after testing of production technology at Natalka the pilot plant will be used for the same purposes at other deposits of the Group.
Note for editors:
Polyus Gold is the largest gold producer in Russia. In 2007 its gold output totaled 1.2 million ounces. Headquartered in Moscow, Polyus Gold's operating mines and development/exploration projects are located in five major gold mining regions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republic of Sakha (Yakutia).
For further information please contact
Alexey V. Chernushkin, Director, CM and IR
Evguenia V.Buydina, IR manager
+7(495) 641-3377
+7(495) 785-4031
ir@polyusgold.com
Victoria V. Vergelskaya, PR Director Elena D. Evstigneeva, Media Relations +7 (495) 641-3365 +7 (495) 544-5496
pr@polyusgold.com