PLZL.L Regulatory News (PLZL)

19 Jun 2007 10:00

OJSC Polyus Gold19 June 2007 For immediate release. Moscow, June 19, 2007 Polyus Gold signs agreement to prepare feasibility study on Natalka deposit OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,today announced an agreement with international engineering company KnightPiesold Consulting to prepare a Feasibility Study for the mining complex onNatalka deposit in the Magadan region. The license holder for Natalka is OJSCMatrosov Mine, a subsidiary of OJSC Polyus Gold. The Pre-Feasibility Study for the project will be prepared within the coming sixmonths in consultation with the engineers of Knight Piesold Consulting. Thebankable Feasibility Study preparation will commence at the same time and willtake approximately 18 months. The results of the ore tests conducted byMcClelland Laboratories in 2006 will be used for the Feasibility. Commenting on the event, CEO of Polyus Gold Pavel Skitovich said: "Theconstruction of a new mine at the giant Natalka deposit is a major investmentproject of Polyus Gold. The involvement of international experts in the projectis a guarantee that this large scale mining complex will be constructed incompliance with the highest industry standards and the most state-of-the-arttechnologies will be applied". Note for editors Polyus Gold is the largest gold producer in Russia. In 2006 its gold outputtotalled 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). Natalka deposit is located in Tenkinsky district of Magadan region, in theOmchak river basin, 450 km. to the North-West from Magadan. The deposit wasdiscovered in 1944. In 1945, underground mining started at the deposit. Themining was stopped in May 2004 as the production was not viable anymore. Alarge-scale exploration programme, aimed at additional exploration of thedeposit's flanks and deep levels, was done at the deposit in 2004-2006. Natalkareserves in the amount of 1500.8 tonnes (48 m oz) of gold in Russian B+C1+C2were listed with the State in December 2006. In accordance with the Strategic Development Plan till 2015, approved by PolyusGold's Board in September 2006, the total investment into Natalka developmentwill amount up to $1.5 billion. The launch of the mining complex is scheduledfor 2012. Knight Piesold is an international group of consulting engineers andenvironmental scientists providing services to the public and private sectors inthe areas of mining, power and water resources. The company offers expertise ingeotechnical, civil, structural and environmental engineering, projectmanagement, and construction management. To support these services, KnightPiesold has specific technical capabilities that include metallurgy, hydraulicdesign, geology, hydrology, hydrogeology, geochemistry, and biology. For further information please contactDenis Davydov, Head of Investor and Public RelationsTel.: +7 (495) 641 33 65E-Mail: pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange