Polymetal: Updated mineral resource estimate for Viksha deposit

Polymetal International plc (POLY) 
Polymetal: Updated mineral resource estimate for Viksha deposit 
 
30-Sep-2019 / 09:00 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         30 September 2019 
 
Polymetal International plc 
 
   Updated mineral resource estimate for Viksha deposit 
 
Polymetal announces the updated Mineral Resource estimate in accordance with 
  the JORC Code (2012) for Viksha PGM deposit. Resources at the property now 
   stand at 5.7 Moz of palladium equivalent (PdEq). 
 
 "We have confirmed Viksha's potential as a large open-pittable deposit. The 
 goal is to complete the feasibility study and publish a reserve estimate in 
   1H 2021", said Vitaly Nesis, Group CEO of Polymetal. 
 
   HIGHLIGHTS 
 
· The new estimate incorporates data from 359 additional diamond drill 
holes (44,349 m) completed by Polymetal in 2017-2018. Cut-off grade is 0.5 
g/t of PdEq. 
 
· The total amount of 4 metals contained is 5.7 Moz of PdEq (6.1 Moz of 
3E) at an average grade of 1.1 g/t of PdEq (1.1 g/t of 3E). 
 
· The share of Measured and Indicated Resources increased from 13% to 65%. 
 
· Average reef width is 8 m. 
 
· Palladium represents 67%, platinum - 12% and gold - 10% of total 
resource value, respectively. 
 
· Maximum pit depth is 300 m below surface with average preliminary 
stripping ratio of 10.7 t/t. 
 
· Next steps - met testing (recovery increase), statutory resource 
certification, other FS work streams. 
 
   Viksha Open Pit Mineral Resources estimate as at 5 September 2019 
 
         Tonnage            Grade                      Content 
             Mt   Au, Pt, Pd, Cu,  PdEq 3E,  Au,  Pt,  Pd,  Cu,  PdEq 3E, 
                  g/t g/t      %    ,   g/t                       ,   Moz 
 
                          g/t                Moz  Moz  Moz  Kt 
                                   g/t                           Moz 
Measured     7    0.1 0.3 0.8 0.09 1.1  1.2  0.03 0.06 0.2  6.5  0.2  0.3 
Indicated   101   0.1 0.3 0.7 0.10 1.1  1.1  0.5  0.8  2.4 96.2  3.5  3.7 
 
Measured+   107   0.1 0.3 0.7 0.10 1.1  1.1  0.5  0.9  2.6 102.7 3.7  4.0 
 
Indicated 
 
Inferred     57   0.1 0.3 0.7 0.10 1.1  1.1  0.3  0.5  1.4 58.4  2.0  2.1 
            165   0.1 0.3 0.7 0.10 1.1  1.1  0.8  1.4  3.9 161.0 5.7  6.1 
 
Measured+ 
 
Indicated+ 
Inferred 
 
   Notes: Mineral resources are provided in accordance with the JORC (2012) 
  with a cut-off grade of palladium equivalent 0.5 g/t. The PdEq formula is: 
   PdEq = Pd(g/t) + Pt(g/t)*0.43 + Au(g/t)*0.68+ Cu(%)*1.32, at Pd price of 
 $1,500/oz, Pt price of $800/oz, Au price of 1,200/oz, Cu price of $6,000/t. 
 
   ABOUT VIKSHA 
 
   The Viksha is a PGM-copper deposit located in the Republic of Karelia 
   (North-West Russia) approximately 450 km from St. Petersburg. The 
infrastructure in the area is well developed with easy access to grid power, 
 paved roads, and railway. Polymetal's 100%-owned subsidiary holds a 20-year 
   mining licence for a project area of 47 km2. 
 
   GEOLOGY 
 
  The property lies near the centre of the southern Karelian Craton which is 
   situated within the Archaean granite-greenstone terrain, adjacent to the 
   lower Proterozoic Onega trough. 
 
  The Viksha deposit comprises of three adjacent areas within the north-west 
   limb of the syncline structure: Viksha proper, Kenti, and Shargi. All of 
 them contain platinum, palladium, gold and copper mineralisation within the 
   Koikar sill gabbro-dolerites. The outcrop of reef-type mineralisation has 
   been traced for over 20 km. 
 
  Viksha mineralisation is localized within the stratified sill rocks at the 
boundary between the lower gabbro and the upper dolerite zones. The sill has 
   a maximum thickness of approximately 235 m. The underlying dolomite 
  sediments are 40-50 m thick. Mineralised zones are clearly stratified with 
  gold and copper predominance in the upper part, and palladium in the lower 
 part of the mineralisation. The platinum-palladium-gold-enriched layer lies 
   approximately 45 m above the sediments. The reef thickness is 5-11 m. 
 
  The near-surface reef-shaped mineralisation forms contiguous ore bodies of 
   considerable width and is amenable to low-cost mechanised bulk open-pit 
   mining. The shallow dip of mineralised zones enables selection of the 
   acceptably low stripping ratios. 
 
   MINERALOGY 
 
 Mineralisation at the Viksha project is associated with titanium-magnetite, 
 chalcopyrite, and bornite. The most abundant species are Pt arsenide and Pd 
    tellurides. The PGM grain size is 5-9 µm; most PGM are locked or 
   exposed/attached to Cu sulphides, Fe oxides/spinel/ilmenite, and silicate 
   minerals. In contrast, the gold minerals, consisting dominantly of 
   gold-bearing silver and electrum are coarser-grained. 
 
   Favourable mineralogy (without nickel) enables conventional flotation 
 process producing bulk copper-PGM sulfide concentrate that can be processed 
   through either PGM refineries or copper smelters with PGM circuit. 
 
   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. He is a Member of the Institute of Materials, 
   Minerals & Mining (MIMMM), London, and 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 - Roman Govorukha, Head of Geologic 
Modelling and Monitoring Department, MIMMM, with 18 years' relevant 
experience; 
 
· Mining and Ore Reserves - Igor Epshteyn, Head of Mining Process 
Department, FIMMM, with 37 years' relevant experience; 
 
· Concentration and Metals - Igor Agapov, Deputy Director of Science and 
Technology, 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 plc (LSE, MOEX, AIX: POLY, ADR: AUCOY) (together 
   with its subsidiaries - "Polymetal", the "Company", or the "Group") is a 
 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. 
 
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ISIN:          JE00B6T5S470 
Category Code: MSCM 
TIDM:          POLY 
Sequence No.:  21664 
EQS News ID:   881815 
 
End of Announcement EQS News Service 
 
 

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September 30, 2019 02:00 ET (06:00 GMT)