Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksPOLY.L Regulatory News (POLY)

  • There is currently no data for POLY

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Polymetal: Ore Reserves increase at Kyzyl 

11 Nov 2019 07:00

Polymetal International plc (POLY) Polymetal: Ore Reserves increase at Kyzyl 11-Nov-2019 / 10:00 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.


Release time

IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY

Date

11 November 2019

 

 

Polymetal International plc

Ore Reserves increase at Kyzyl

Polymetal is pleased to announce an 18% increase in Ore Reserves at Kyzyl gold deposit to 8.5 Moz of gold in accordance with the JORC Code (2012).

"We have concluded the first stage of extending open-pit life-of-mine at our flagship operation. The next step is to estimate Ore Reserves at East Bakyrchik in Q4 2020", said Vitaly Nesis, Group CEO of Polymetal.

The updated JORC-compliant Ore Reserve estimate as of 1 July 2019 comprises 41.7 Mt of ore with an average grade of 6.3 g/t containing 8.5 Moz of gold. This represents an 18% increase in gold contained in comparison with the reserves as at the end of 20181. Open-pit reserves increased by 37% to 4.2 Moz of gold contained at an average grade of 5.7 g/t, while underground reserves were up 4% to 4.3 Moz of gold contained at an average grade of 7.1 g/t. Total life of mine extended by 8 years (to 2047), while life of mine for the open pit added 5 years (to 2031) in comparison with the previous Feasibility Study estimate conducted in 2015 ("FS"). The updated Ore Reserve estimate incorporates data from the drilling campaign (additional 239 diamond drill holes, 41.5 km of drilling) which resulted in extension of mineralization zones within the existing ore bodies and update of the resource model. Cut-off grades decreased from 2.0 g/t to 1.0 g/t for the open pit and from 3.7 g/t to 3.0 g/t for the underground compared to the previous FS. The decline was driven by lower mining and processing costs based on actual operational and economic data and lower concentrate processing and transportation expenses which now take into account concentrate processing at the Amursk POX. The new mining schedule assumes increased capacity of the Kyzyl processing plant which grew from the originally designed 1.8 Mtpa to 2.0 Mtpa in 2019.

Ore Reserves (Proved + Probable) changes

Ore Reserves

Category

01.01.2019[1]

01.07.2019

Change, %

Open pit

Tonnage, Mt

13.6

22.9

+68%

Au grade, g/t

7.0

5.7

-19%

Au content, Moz

3.1

4.2

+37%

 

 

 

 

 

Underground

Tonnage, Mt

15.1

18.8

+25%

Au grade, g/t

8.5

7.1

-16%

Au content, Moz

4.1

4.3

+4%

 

 

 

 

 

Total

Tonnage, Mt

28.7

41.7

+45%

Au grade, g/t

7.8

6.3

-19%

Au content, Moz

7.2

8.5

+18%

Ore Reserves reconciliation, Moz

Ore Reserves, 01.01.2019

Depletion

Revaluation

Ore Reserves, 01.07.2019

7.2

-0.2

+1.5

8.5

Notes: Discrepancies in calculations are due to rounding. This note applies to all tables in this release.

ORE RESERVES

The Ore Reserve estimate is reported in accordance with the JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied for the open pit and 3.0 g/t for the underground. Ore Reserves were estimated solely for Zone 1 of the Bakyrchik deposit, Zone 2 (East Bakyrchik) reserves were not estimated.

Kyzyl Ore Reserves estimate as at 1 July 2019

Ore Reserves

Tonnage,

Gold grade,

Gold content,

Mt

g/t

Moz

Proved

 

 

 

Open pit

1.2

6.3

0.3

Stockpiles

0.5

5.9

0.1

Total Proved

1.7

6.2

0.3

 

 

 

 

Probable

 

 

 

Open pit

21.2

5.7

3.9

Underground

18.8

7.1

4.3

Total Probable

40.0

6.3

8.1

 

 

 

 

Proved+Probable

 

 

 

Open pit

22.5

5.7

4.1

Underground

18.8

7.1

4.3

Stockpiles

0.5

5.9

0.1

Total Proved+Probable

41.7

6.3

8.5

MINERAL RESOURCES

The Mineral Resources estimate for Zone 1 is reported in accordance with the JORC Code (2012) as at 1 July 2019 using a gold price of US$ 1,200/oz and was prepared by Polymetal. A cut-off grade of 1.0 g/t of gold was applied for the open pit and 3.0 g/t for the underground. The Mineral Resources estimate for Zone 2 was prepared by RPA Inc. in accordance with the JORC Code (2012) as at 1 January 2015. Cut-off grades for the open pit and the underground are 2.0 g/t and 3.7 g/t of gold, respectively. Revised estimate for Zone 2 was not conducted due to the lack of material changes.

Kyzyl Mineral Resources estimate

Mineral Resources

Tonnage,

Gold grade,

Gold content,

Mt

g/t

Moz

Indicated

Underground (Zone 1)

2.3

5.0

0.4

Total Indicated

2.3

5.0

0.4

 

 

 

 

Inferred

 

 

 

Open-pit

0.5

3.8

0.1

Zone 1

0.2

2.3

0.01

Zone 2

0.3

4.8

0.05

Underground

10.8

6.7

2.3

Zone 1

2.4

6.4

0.5

Zone 2

8.4

6.8

1.8

Total Inferred

11.4

6.6

2.4

 

Indicated + Inferred

 

 

 

Open-pit

0.5

3.8

0.1

Zone 1

0.2

2.3

0.01

Zone 2

0.3

4.8

0.05

Underground

13.1

6.4

2.7

Zone 1

4.7

5.7

0.9

Zone 2

8.4

6.8

1.8

Total Indicated + Inferred

13.6

6.3

2.8

Notes: Mineral Resources are additional to Ore Reserves.

ABOUT KYZYL

Kyzyl is a world-class asset located in north-eastern Kazakhstan in a traditional mining region with good infrastructure and easy access to grid power and the railway. In 2014, the asset was acquired by Polymetal. The initial Feasibility Study and the updated Ore Reserve and Mineral Resource estimates was completed by the Company in 2015.

The operation comprises the Bakyrchik refractory gold deposit and a state-of-the-art 2.0 Mtpa processing plant employing conventional flotation technology. The ultimate product of the production facility is flotation concentrate. Low carbon concentrate is sent for processing to the Company's POX facility in Amursk, while the high carbon concentrate currently goes to third party off-takers. With the launch of POX-2, Polymetal intends to process 100% of Kyzyl concentrate in-house.

Competent persons

This estimate was prepared by employees of JSC Polymetal Management Company and JSC Polymetal Engineering, subsidiaries of the Company, led by Mr. Valery Tsyplakov.

Mr. Tsyplakov is employed full-time as the Managing Director of JSC Polymetal Engineering and has more than 18 years' experience in gold, silver and polymetallic mining. Being a Member of the Institute of Materials, Minerals & Mining (MIMMM), London, he is a Competent Person under the JORC Code.

Listed below are other Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate is based:

Geology and Mineral Resources - Victor Pchelka, Head of Production and Geology Department, Polymetal Eurasia, PONEN, MIMMM, with 33 years' relevant experience; Mining and Ore Reserves: Open Pit -  Dmitriy Teterin, Head of Mineral Resources and Ore Reserves Audit Department, Polymetal Engineering, MIMMM, with 10 years' relevant experience; Underground - Andrei Somov, Head of underground mining Department, Polymetal Engineering, MIMMM, with 31 years' relevant experience Concentration and Metals - Igor Agapov, Deputy Director of Science and Technology, Polymetal Engineering, MIMMM, with 21 years' relevant experience.

All the above-mentioned Competent Persons have sufficient experience that is relevant to the style of mineralisation and types of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code).

All Competent Persons have given their consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

About Polymetal 

Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is the top-20 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

 

 

Enquiries

Media   Investor Relations

FTI Consulting

Leonid Fink

Viktor Pomichal

+44 20 3727 1000

Polymetal

Evgeny Monakhov

Timofey Kulakov

Kirill Kuznetsov

ir@polymetalinternational.com

+44 20 7887 1475 (UK)

 

+7 812 334 3666 (Russia)

Joint Corporate Brokers  

Morgan Stanley

Andrew Foster

Richard Brown

Panmure Gordon

Charles Lesser

James Stearns

+44 20 7425 8000

 

 

 

+44 20 7886 2500

RBC Europe Limited

Marcus Jackson

Jamil Miah

+44 20 7653 4000

 

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 


[1] Previous JORC-compliant estimate was prepared by RPA Inc. as at 01.01.2015. Price: Au = US$1,200/oz. Revised estimate prepared by Polymetal as at 01.01.2019 accounts only for depletion.


ISIN:JE00B6T5S470
Category Code:MSCM
TIDM:POLY
Sequence No.:28204
EQS News ID:908863
 
End of AnnouncementEQS News Service

UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

Date   Source Headline
10th Aug 20237:00 amEQSPolymetal: Resumption of trading on AIX
1st Aug 20236:00 pmEQSPolymetal: Suspension of Trading on the London Stock Exchange
28th Jul 20231:00 pmEQSPolymetal: Results of GM
25th Jul 20232:00 pmEQSPolymetal: Results of AGM
24th Jul 20233:00 pmEQSPolymetal: Q2 2023 production results webcast
21st Jul 20237:00 amEQSPolymetal: Update to the timetable of the Re-domiciliation
10th Jul 20234:55 pmEQSPolymetal: Proposed cancellation of listing on the Official List and from trading on the London Stock Exchange and notice of General Meeting
10th Jul 202311:30 amEQSPolymetal: Acquisition of the controlling stake in the Baksy property in Kazakhstan
10th Jul 20237:00 amEQSPolymetal: Clarification to the expected timetable of the Re-domiciliation
30th Jun 20233:00 pmEQSPolymetal: Report on payments to governments for the year 2022
29th Jun 20237:05 amEQSPolymetal: Update to the timetable of the Re-domiciliation
29th Jun 20237:00 amEQSPolymetal: Notice of 2023 AGM
19th Jun 20233:30 pmEQSPolymetal: Board changes
16th Jun 20237:01 amEQSPolymetal: Further Extension to Exchange Offer Timetable
5th Jun 20237:00 amEQSPolymetal: Update on the Company’s Russian-registered subsidiary, JSC Polymetal
30th May 20231:30 pmEQSPolymetal: Results of GM
26th May 20234:21 pmEQSPolymetal: Resignation of Bank of New York Mellon as depository bank for American Depositary Receipt programme
22nd May 20237:00 amEQSPolymetal: Update on the Russian-registered JSC Polymetal
18th May 20235:00 pmEQSPolymetal: General Meeting Voting Arrangements
16th May 20237:01 amEQSPolymetal: Circulation of General Meeting Materials
10th May 20237:01 amEQSPolymetal: Q1 2023 production results
10th May 20237:00 amEQSPolymetal: Proposed re-domiciliation to the AIFC (Кazakhstan) and notice of General Meeting
3rd May 20237:00 amEQSPolymetal: Analyst and Investor Briefing
23rd Mar 20237:00 amEQSPolymetal International plc: Integrated Annual Report 2022
16th Mar 20237:01 amEQSPolymetal: Preliminary results for the year ended 31 December 2022
16th Mar 20237:00 amEQSPolymetal: Board Committee Changes
1st Mar 20237:01 amEQSPolymetal: Ore Reserves, Mineral Resources and Exploration update as at 1 January 2023
10th Feb 20238:00 amEQSPolymetal: Statement in relation to trading of shares on the London Stock Exchange
10th Feb 20237:00 amEQSPolymetal: Statement in relation to trading of shares on the London Stock Exchange
27th Jan 20234:40 pmRNSSecond Price Monitoring Extn
27th Jan 20234:35 pmRNSPrice Monitoring Extension
25th Jan 20238:00 amEQSPolymetal: Q4 and FY 2022 production results
25th Jan 20237:00 amEQSPolymetal: Q4 and FY 2022 production results
17th Jan 20238:00 amEQSPolymetal: Analyst and Investor Day
17th Jan 20237:00 amEQSPolymetal: Analyst and Investor Day
11th Jan 20234:35 pmRNSPrice Monitoring Extension
30th Dec 20228:00 amEQSPolymetal: Total Voting Rights as at 30 December 2022
30th Dec 20227:00 amEQSPolymetal: Total Voting Rights as at 30 December 2022
12th Dec 20228:00 amEQSPolymetal: Results of the first tranche of the Exchange Offer
12th Dec 20227:00 amEQSPolymetal: Results of the first tranche of the Exchange Offer
8th Dec 20228:00 amEQSPolymetal: Extension to the settlement period in connection with the Exchange Offer
8th Dec 20227:00 amEQSPolymetal: Extension to the settlement period in connection with the Exchange Offer
1st Dec 20228:00 amEQSPolymetal: Board Changes
1st Dec 20227:00 amEQSPolymetal: Board Changes
10th Nov 20228:00 amEQSPolymetal: Board Committee Changes
10th Nov 20227:00 amEQSPolymetal: Board Committee Changes
2nd Nov 20228:00 amEQSPolymetal: Q3 2022 production results
2nd Nov 20227:00 amEQSPolymetal: Q3 2022 production results
12th Oct 20225:30 pmEQSPolymetal: Submission of resolutions to NSM
12th Oct 20225:30 pmEQSPolymetal: Submission of resolutions to NSM

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.