PLZL.L Regulatory News (PLZL)

14 Nov 2007 17:02

OJSC Polyus Gold14 November 2007 For immediate release Moscow, 14 November 2007 The Board of Directors of Polyus Gold approves basic parameters of Blagodatnoyeand Titimukhta projects in Krasnoyarsk region. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer,announces that the company's Board on its meeting held today approved the basicparameters of the company's two projects in Krasnoyarsk region - Blagodatnoyeand Titimukhta. Titimikha The license holder for Titimukhta deposit is ZAO Polyus, a wholly ownedsubsidiary of Polyus Gold. In 2004-2007 exploration works have been done at thedeposit, resulting in the reserves increase from 40.2 tons (1.3 m oz) to 78.3tons (2.5 m oz) at 3.02 g/t. The reserves are expected to be listed with theState Reserves Committee (GKZ) by end of 2007. According to the approved project, the annual ore processing capacity willamount to 1.5 million tonnes in 2009 and will increase to 2.2 million tonnesbeginning with 2010. The average gold production will amount to 3.7 tonnes (119k oz) in 2009 and will reach 5.3 tonnes (170 k oz) in 2010. According to thedecision taken by the Board of directors of Polyus Gold, the total investmentsinto the project (less exploration expenses) for the period from 2006 through2010 will amount to $98.7 million (excluding VAT). Blagodatnoye ZAO Polyus is the license holder for Blagodatnoye deposit. The balance reservesof the deposit as of 1.01.2007 amount to 222.4 tonnes (7.2 m oz) at 2.44 g/t. According to the approved feasibility study, the project will include theconstruction of a gold processing plant. The plant will be launched in 2010 andduring its first year of operation will process 3 million tonnes of ore. In 2011the capacity of the plant will reach 6 million tonnes of ore per year. Theaverage gold production will amount to 6.4 tonnes (206 k oz) in 2010 and willincrease to 12.8 tonnes (412 k oz), starting from 2011. The total amount ofinvestments into the project, according to the decision taken by the Board ofDirectors of Polyus Gold, will equal to $390 million (excluding VAT). General Director of Polyus Gold Evgueni Ivanov noted that Blagodatnoye andTitimukha are located in immediate proximity to Polyus' Olimpiada mine, which iscreating synergy for the projects in the area of infrastructure and repairservices development. Both projects are included in the Strategy till 2015approved by the Board in September 2006. Mr. Ivanov said: "We are pleased withdecision of the Board, which will allow the company to start mining at thedeposits according to the schedule approved by the Strategy". 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 Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 pr@polyusgold.com This information is provided by RNS The company news service from the London Stock Exchange