Polymetal International plc (POLY)
Polymetal: Tomtor initial Ore Reserve estimate
19-Apr-2021 / 09:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 19 April 2021 Polymetal International plc
Tomtor initial Ore Reserve estimate
Polymetal announces that its associate ThreeArc Mining Ltd.
(ThreeArc, in which Polymetal owns 9.1%) has completed an initial
Ore Reserve estimate in accordance with the JORC Code (2012) for
the Buranny area of the Tomtor niobium and rare-earth metals
project (Tomtor).
"Tomtor confirmed its scale and grade as one of the premier
niobium and rare earths deposits globally", said Vitaly Nesis,
Group CEO of Polymetal. "The project team will now focus on
completion of a bankable feasibility study, paving the way for the
investment decision. Permitting issues and a Covid-related slowdown
in offshore engineering work remain the key challenges for the
project".
HIGHLIGHTS ? The initial Ore Reserve estimate as at 31 December
2019 comprises 11.4 Mt of ore available for open-pit mining at
6.0% Nb2O5[1]+14.5% REO[2] grade (including 2.8% of NdPr[3]
oxides) containing 0.7 Mt of Nb2O5 and 1.7 Mt of REO
which makes Tomtor one of the top-3 rare earths projects
globally by reserves. ? The open pit mine will be operated in two
roughly equal stages:
? Stage 1: 14 years of mining of niobium-rich ore with ore being
stockpiled at the mine to provide feed
sufficient for more than 40 years of processing at Krasnokamensk
Hydrometallurgical Facility (KHF). The ore
will be dried on site and transported via a sequence of ice
roads, barges, ships and rail to KHF. Accelerating
mining and stockpiling ore is considered to be the most
practical approach given the project's location.
? Stage 2: the open pit will recommence after the ore stockpiled
during Stage 1 has been fully processed to
complete mining and stockpile ore for a further 27 years of
processing. The Stage 2 feed will contain higher
content of Rare Earth Elements (REE) and lower niobium grades. ?
The KHF will be built near the town of Krasnokamensk located in
South-Eastern Siberia close to the border with
China being the location of Russia's largest uranium mine and
associated processing and tailings infrastructure
that is expected to be used to store the waste generated by the
plant. ? The planned plant's throughput is 160 Ktpa of dry ore. The
facility will produce niobium oxide which will be toll
converted to ferroniobium, and a bulk REE carbonate concentrate
which is currently planned to be toll treated to
produce Ce&La oxides, NdPr oxides and a mixed medium-heavy
rare earth carbonate. ? The bankable feasibility study of the
project, including a number of downstream processing flowsheet
improvements
is currently in progress. The process has been slowed down due
to Covid-related challenges. ? The completion of the feasibility
study and basic engineering of the project will be contingent on
the state
approval of the sustainable waste management concept developed
for the project and of the respective legislative
changes. ? Mineral Resources (additional to Ore Reserves) amount
to 1.5 Mt of ore with an average grade of 4.8% Nb2O5+15.2%
REO grade representing 0.07 Mt of Nb2O5 and 0.2 Mt of REO. ? The
Ore Reserve and Mineral Resource audit prepared by SRK Consulting
(Russia) Ltd is the first independent audit
of the Tomtor project.
ORE RESERVE AND MINERAL RESOURCE STATEMENT
The Ore Reserve and Mineral Resource estimates are classified in
accordance with the JORC Code (2012) as at 31 December 2019 using
the following prices: USUSD 23.9/kg of Nb2O5, USUSD 53.5/kg of
Pr6O11, USUSD 48.5/kg of Nd2O3, USUSD 20.80 / kg carbonate
concentrate of medium and heavy rare earths (Sm, Eu, Gd, Tb, Dy,
Ho, Er, Tm, Yb, Lu, Y) and at 7.8% Nb2O 5 Equivalent cut-off grade.
Any discrepancies in calculations are due to rounding.
Tomtor Ore Reserve estimate
Tonnage Grade Content
REO REO
Nb2O5 NdPr Total Nb2O5 NdPr Total
Mt Other REO Other REO
% oxides REO Kt oxides REO
% Kt
% % Kt Kt
Probable
Stage 1 7.0 6.7 2.5 10.7 13.2 470 173 747 920
Stage 2 4.4 5.0 3.1 13.6 16.7 220 134 606 740
Total Probable 11.4 6.0 2.8 11.7 14.5 690 306 1,354 1,660
Tomtor Additional Mineral Resource estimate
Tonnage Grade Content
REO REO
Nb2O5 Nb2O5
Mt NdPr oxides Other REO Total REO NdPr oxides Other REO Total REO
% Kt
% % % Kt Kt %
Indicated 0.06 5.9 2.4 10.9 13.3 4 1 7 8
Inferred 1.4 4.7 2.8 12.5 15.3 68 40 180 220
Total Indicated + Inferred 1.5 4.8 2.8 12.4 15.2 72 41 187 228
ABOUT TOMTOR
Tomtor is located in the north-west of Yakutia. It is one of the
largest and highest grade rare earth elements (REE) projects
globally and considered to be the highest grade development stage
niobium (Nb) project in the world. The deposit was discovered in
1977 with initial statutory reserves approved in 1999. In 2013, ICT
established ThreeArc Mining Ltd., a subsidiary of which purchased
the Tomtor license subsequently. In March 2020, Polymetal acquired
a 9.1% stake in ThreeArc for USUSD 20 million. The proceeds were
allocated to developing the Pre-Feasibility Study and preparing the
initial Ore Reserve and Mineral Resource estimate.
Competent persons
The Ore Reserves estimate was compiled by David Pearce, who is
employed full-time by SRK Consulting (Russia) Ltd, as a Principal
Mining Consultant and Managing Director. Mr Pearce is a Fellow of
the Australasian Institute of Mining and Metallurgy (AusIMM), and
has sufficient experience relevant to the mining method and type of
deposit under consideration, and to the engineering solutions
proposed for developing the project, to qualify as a Competent
Person as defined by the 2012 edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (JORC Code).
The Mineral Resource estimate was compiled by Robin Simpson, who
is employed full-time by SRK Consulting (Russia) Ltd, as a
Principal Consultant (Resource Geology). Mr Simpson is a Member of
the Australian Institute of Geoscientists (AIG), and has sufficient
experience relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined by the 2012
edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" (JORC Code).
The 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 plc (together with its subsidiaries -
"Polymetal", the "Company", or the "Group") is a top-10 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.
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