TIDMPLZL TIDM60GT
RNS Number : 2680I
PJSC Polyus
20 March 2018
Press Release 20 March 2018
PJSC Polyus
Ore Reserves and Mineral Resources Update
PJSC Polyus (LSE, MOEX - PLZL) ("Polyus", the "Company"), the
largest gold producer in Russia, announces the results of its Ore
Reserves and Mineral Resources review as at 31 December 2017 in
accordance with JORC Code 2012.
Polyus' Proved and Probable (P&P) Ore Reserves are estimated
at 68 moz of gold. The Measured, Indicated and Inferred (MI&I)
Mineral Resources stand at 190 moz, including 58 moz of Inferred
Mineral Resource for Sukhoi Log, one of the world's largest
undeveloped gold deposits.
Polyus retains its status of the second largest company by
attributable gold reserves and attributable gold resources among
the world's largest gold mining companies.
Ore Reserves Highlights
-- Polyus' Ore Reserves estimated at 68 moz of gold, down from
71 moz as of 31 December 2016, which reflects mining depletion
during 2017.
-- With processing at the Natalka Mill having been launched and
now anticipated to be fully ramped up in the second half of 2018,
over 95% of the Company's Ore Reserves are located within the
operating assets:
o The Krasnoyarsk Business Unit has the largest share of the
Company's Ore Reserves, with 28 moz of Ore Reserves reported at
Olimpiada and 9.6 moz at Blagodatnoye.
o Ore Reserves at Verninskoye and Kuranakh were recorded at 5.1
moz and 4.4 moz, respectively.
o Natalka has estimated Ore Reserves of 16 moz.
-- Polyus average Ore Reserve gold grade is estimated at 1.8
g/t, inclusive of Alluvial operations and lower grade ore for heap
leaching operations. The gold grade of ore to be processed in
plants stands at 2.0 g/t.
-- In 2017, the Company launched a 180,000-metre drilling
campaign at Sukhoi Log. Approximately 25,000 metres is now
completed. Sukhoi Log's Ore Reserves have not yet been estimated
and the Company expects these to be included in its reserve
statement in 2020.
-- Further studies at Chertovo Koryto are expected to be
completed in 2019 to enable update of the Ore Reserve estimate.
Mineral Resources Highlights
-- The Company's Mineral Resource estimates stand at 190 moz.
-- More than 63% of the Company's Mineral Resources are attributable to operational mines:
o Olimpiada's Mineral Resources are estimated at 44 moz.
o Blagodatnoye's Mineral Resources stand at 19 moz.
o Verninskoye and Kuranakh's Mineral Resources include estimates
of 12 moz and 9.0 moz, respectively.
o Natalka Mineral Resources amount to 34 moz.
-- Inferred Mineral Resources for Sukhoi Log are estimated at 58
moz of gold grading 2.0 g/t. As previously outlined, the Company
expects to upgrade the classification of a portion of this estimate
from Inferred Mineral Resource before the end of 2018.
-- At Bamskoye, the Company completed the exploration programme
and expects to submit documentation to regulatory authorities in
2018.
Mineral Resource and Ore Reserve estimates
The Mineral Resource and Ore Reserve estimates are summarized in
the Tables below. The effective date for the estimates is 31
December 2017. There is no material change to the estimates since
the previous statement on 5 June 2017, apart from mining
depletion.
Polyus Ore Reserve estimates as at 31 December 2017([1])
Deposit([2]) Proved Probable Total
----------------- ------------------------- ------------------------- -------------------------
Tonnes Gold Gold Tonnes Gold Gold Tonnes Gold Gold
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Mines in Operation
--------------------------------------------------------------------------------------------------
Olimpiada 6.5 2.9 0.6 288 2.9 27 295 2.9 28
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Blagodatnoye 52 0.9 1.6 164 1.5 8.0 216 1.4 9.6
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Titimukhta 5.3 1.6 0.3 6.3 3.1 0.6 12 2.4 0.9
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Verninskoye 12 1.3 0.5 82 1.7 4.6 94 1.7 5.1
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Alluvials([3]) 0.0 0.0 0.0 87 0.3 1.0 87 0.3 1.0
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Kuranakh 0.0 0.0 0.0 141 1.0 4.4 141 1.0 4.4
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Natalka 146 1.5 7.3 146 1.8 8.5 293 1.7 16
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Development and Exploration Projects
--------------------------------------------------------------------------------------------------
Chertovo Koryto 0 0.0 0.0 62 1.5 3.1 62 1.5 3.1
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total([4]) 222 1.4 10.2 976 1.8 57 1,199 1.8 68
----------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Polyus Mineral Resource estimates as at 31 December 2017
Deposit(2) Measured Indicated Inferred Total
--------------- ------------------------ ------------------------ ------------------------ -----------------------
Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold
(Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Mines in Operation
----------------------------------------------------------------------------------------------------------------------
Olimpiada 6.5 2.9 0.6 320 3.0 31 127 2.8 12 454 3.0 44
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Blagodatnoye 52 0.9 1.6 292 1.5 14 69 1.3 3.0 413 1.4 19
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Titimukhta 5.3 1.6 0.3 6.3 3.1 0.6 0.5 1.5 0.03 12 2.4 0.9
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Verninskoye 12 1.3 0.5 209 1.6 11 14 2.0 0.9 93 4.0 12
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Alluvials(3) 0 0.0 0.0 224 0.2 1.4 34 0.4 0.4 258 0.2 1.9
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Kuranakh 0.0 0.0 0.0 153 1.1 5.4 97 1.2 3.7 250 1.1 9.1
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Natalka 150 1.7 8.2 261 1.8 15 148 2.1 9.9 558 1.9 34
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Development and Exploration Projects
----------------------------------------------------------------------------------------------------------------------
Sukhoi
Log([5]) 0 0.0 0 0 0.0 0 887 2.0 58 887 2.0 58
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Panimba 5.0 2.3 0.4 11 2.3 0.8 24 1.8 1.4 40 2.0 2.6
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Poputninskoye 0 0.0 0 37 3.2 3.9 4.4 2.9 0.4 42 3.2 4.3
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Zmeinoye 0 0.0 0 0.9 5.0 0.1 2.0 4.5 0.3 2.9 4.6 0.4
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Chertovo
Koryto 0 0.0 0 67 1.5 3.3 7.8 1.3 0.3 75 1.5 3.6
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Bamskoye 0 0.0 0 15 1.8 0.9 5.1 1.6 0.3 20 1.8 1.1
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Medvezhy 0 0.0 0 0 0.0 0 6.5 1.8 0.4 6.5 1.8 0.4
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Total(4) 231 1.5 11 1,596 1.7 88 1,426 2.0 91 3,111 1.9 190
--------------- ------- ------ ------- ------- ------ ------- ------- ------ ------- ------- ------ ------
Competent persons
The Ore Reserve and Mineral Resource estimates are classified
and reported according to the JORC Code reporting requirements. All
material assumptions and technical parameters underpinning the
estimates in the announcement have been reported previously, have
not materially changed, and continue to apply.
The Competent Persons responsible for each estimate of Ore
Reserves and Mineral Resources are:
-- Mr Mark Chesher, AMC Principal Mining Engineer (Olimpiada
open pit, Verninskoye, Chertovo Koryto, Kuranakh, Blagodatnoye, and
Natalka Ore Reserve estimates).
-- Mr Mikhail Satarov, Polyus Director of Department of Reserves
and Operational Exploration (Titimukhta and Alluvials Ore Reserve
estimates, Titimukhta, Alluvials, Panimba and Zmeinoye Mineral
Resource Estimates. and all stockpile estimates).
-- Mr Peter Cunningham, AMC Principal Mining Engineer (Olimpiada
Underground Ore Reserve estimate).
-- Mr Ingvar Kirchner, AMC, Principal Resource Geologist
(Olimpiada, Blagodatnoye, Verninskoye, Kuranakh, Sukhoi Log,
Poputninskoye, Chertovo Koryto, Bamskoye and Medvezhy Mineral
resource estimates).
-- Mr Mohan Srivastava, Micromine Consulting Services, Principal
Consultant (Natalka Mineral Resource estimate).
All Competent Persons are Members of the Australasian Institute
of Mining and Metallurgy, the Australian Institute of
Geoscientists, or approved Recognized Professional Organisations,
and have sufficient experience relevant to the style of
mineralization and type of deposit under consideration and to the
activity which is being undertaken to qualify as a Competent
Persons as defined in the JORC Code.
In reporting the Mineral Resources and Ore Reserves referred to
in this public release, AMC and Micromine acted as independent
parties, have no interest in the outcomes of Polyus projects, and
have no business relationship with Polyus other than undertaking
those individual technical consulting assignments as engaged, and
being paid according to standard per diem rates with reimbursement
for out-of-pocket expenses. Therefore, AMC, Micromine and the
Competent Persons believe that there is no conflict of interest in
undertaking the assignments which are the subject of the
statements.
Polyus
The Polyus group is the largest gold producer in Russia and one
of the top 10 gold miners globally with the lowest cost position.
Based on its 2017 Ore Reserves and Mineral Resources, the Polyus
group ranks second by attributable gold reserves and gold resources
among the world's largest gold mining companies.
The Polyus group's principal operations are located in
Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic
(Yakutia).
Enquiries
Investor contact
Victor Drozdov, Director Investor Relations
+7 (495) 641 33 77
drozdovvi@polyus.com
Media contact
Victoria Vasilyeva, Director Public Relations
+7 (495) 641 33 77
vasilevavs@polyus.com
Forward looking statement
This announcement may contain "forward-looking statements"
concerning Polyus and/or Polyus group. Generally, the words "will",
"may", "should", "could", "would", "can", "continue",
"opportunity", "believes", "expects", "intends", "anticipates",
"estimates" or similar expressions identify forward-looking
statements. The forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements.
Forward-looking statements include statements relating to future
capital expenditures and business and management strategies and the
expansion and growth of Polyus' and/or Polyus group's operations.
Many of these risks and uncertainties relate to factors that are
beyond Polyus' and/or Polyus group's ability to control or estimate
precisely and therefore undue reliance should not be placed on such
statements which speak only as at the date of this announcement.
Polyus and/or any Polyus group company assumes no obligation in
respect of, and does not intend to update, these forward-looking
statements, except as required pursuant to applicable law.
([1]) using a gold price assumption of US$1,250/oz
([2]) the estimates for all deposits are presented on a 100%
basis
([3]) for the Alluvials, cubic metres (m3) have been converted
to tonnages using the general bulk density factor of 1.85 t/m3
strictly for the purpose of the summary accumulations. Gold grades
have been adjusted from g/m3 to g/t accordingly. Contained gold
estimates are not affected
([4]) any minor discrepancies for sums in the table are related
to rounding
([5]) Sukhoi Log Mineral Resource estimate is as at 31 January
2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
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