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10 Jul 2008 11:20
For immediate releaseMoscow, July 10, 2008
Polyus Gold increases its P&P reserves to over 72 m oz following Titimukhta audit.
OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia's leading gold producer, today announced the completion of the additional exploration programme and reserves audit at Titimukhta deposit, which led to the increase of the Group's total proved and probable reserves to 72.3 million ounces of gold. The reserves audit was conducted by MICON International Ltd.
Titimukhta deposit is located 9 km from Olimpiada deposit in Krasnoyarsk region. CJSC Polyus, a wholly-owned subsidiary of OJSC Polyus Gold is the licence holder for the deposit. Titimukhta was discovered in 1991. In 2004-2007 CJSC Polyus conducted additional exploration at the deposit. Following the exploration programme Titimukhta balance reserves (C1+C2, Russian classification) amounted to 27 million tonnes of ore, or 82.8 tonnes (2.7 million onces) of gold at 3.06 g/t. At the end of 2007 Titimukhta reserves were listed on the state balance by Russia's State reserves committee (GKZ Rosnedra).
According to the report prepared by MICON, proved and probable reserves of the deposit amounted to 21.1 million tonnes of ore, or 69.6 tonnes (2.2 million ounces) of the metal at 3.3 g/t. Measured and indicated resources amounted to 27.2 million tonnes of ore, or 2.7 million ounces of the metal at 3.1 g/t. Inferred resources amounted to 3.55 million tonnes of ore, or 0.27 million ounces of gold at 2.4 g/t. The reserves calculation was based on 0.8 g/t cut-off grade and $700/oz gold price.
According to the approved feasibility study of the Titimukhta project, the volume of ore to be processed in 2009 will amount to 1.5 million tonnes, and will be increased to 2.2 million tonnes annually in 2010. The gold production in 2009 will amount to 3.7 tonnes (119 k oz), and in 2010 the annual gold production will be increased to 5.3 tonnes (170 k oz). Capital expenditure (ex. VAT) into the project will amount to $98.7 million for the period 2006 - 2010.
Commenting on the event General director of OJSC Polyus Gold Evgueni Ivanov said that Titimukhta is located in immediate proximity to the Group's Olimpiada deposit. "We have always considered Titimukhta ores as potential feed for Olimpiada mine. Titimukta's location next to Olimpiada is creating synergies in terms of industrial and social infrastructure, - Mr. Ivanov said.
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Polyus Gold is the largest gold producer in Russia. 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). The company produced 1.2 m oz of gold in 2007.
For further information please contact
For investors:
Alexey V. Chernushkin, Director, CM and IR
Evguenia V.Buydina, IR manager
+7(495) 641-3377
+7(495) 785-4031
ir@polyusgold.com
For press:
Victoria V. Vergelskaya, PR Director Elena D. Evstigneeva, Media Relations +7 (495) 641-3365 +7 (495) 544-5496
pr@polyusgold.com
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