DJ Polymetal: Ore Reserves increase at Kyzyl
Polymetal International plc (POLY)
Polymetal: Ore Reserves increase at Kyzyl
09-Nov-2020 / 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 09 November 2020
Polymetal International plc
Ore Reserves increase at Kyzyl
Polymetal announces a 25% increase in Ore Reserves at Kyzyl to 10.3 Moz of
gold following initial reserve estimate at East Bakyrchik of 2.2 Moz of
gold.
"A substantial reserve addition at East Bakyrchik extends the life-of-mine
at Kyzyl to 30 years", said Vitaly Nesis, Group CEO of Polymetal.
"Importantly, open-pit mining will now continue till 2036".
HIGHLIGHTS
? The initial JORC-compliant Ore Reserve estimate for East Bakyrchik (Zone
2 of Kyzyl) as at 1 April 2020 comprises 18.8 Mt of ore at an average
grade of 3.7 g/t containing 2.2 Moz of gold, roughly 80% of which are
underground.
? Total Kyzyl Ore Reserves now stand at 59.3 Mt of ore with an average
grade of 5.4 g/t containing 10.3 Moz of gold. This represents a 25%
increase compared with the estimate at the end of 2019.
? Open-pit reserves increased by 9% to 4.3 Moz of gold contained at an
average grade of 4.9 g/t, underground reserves were up 40% to 6.0 Moz at
an average grade of 5.8 g/t.
? East Bakyrchik has added 5 years to the total Kyzyl life of mine (2050),
while life-of-mine (LOM) for the open pit has extended by 6 years (to
2036). East Bakyrchik open-pit LOM average strip ratio is 27 t/t.
? The new mining schedule assumes an increase in the capacity of the Kyzyl
processing plant from 2.0 Mtpa to 2.2 Mtpa in 2022.
? East Bakyrchik Ore Reserve estimate incorporates data from the
exploration campaign in 2015-2020 including 29.9 km of drilling (168
diamond drill holes).
? Total Kyzyl Mineral Resources (additional to Ore Reserves) amount to
15.6 Mt of ore with an average grade of 4.0 g/t representing 2.0 Moz of
gold contained.
Ore Reserves (Proved + Probable) changes
Ore Reserves Category 01.01.2020 01.04.2020 Change, %
( (Bakyrchik &
Bakyrchik)
East
Bakyrchik)
Open pit[1] Tonnage, Mt 21.8 27.3 +25%
Au grade, g/t 5.7 4.9 -13%
Au content, 4.0 4.3 +9%
Moz
Underground Tonnage, Mt 18.8 32.1 +71%
Au grade, g/t 7.1 5.8 -18%
Au content, 4.3 6.0 +40%
Moz
Total Tonnage, Mt 40.6 59.3 +46%
Au grade, g/t 6.3 5.4 -15%
Au content, 8.2 10.3 +25%
Moz
ORE RESERVES
The Ore Reserve estimate is reported in accordance with the JORC Code (2012)
and was prepared by Polymetal using a gold price of US$ 1,200/oz. For the
Bakyrchik open pit and underground the previous estimate was performed as at
1 July 2019, the updated estimate was prepared as at 1 April 2020 and
accounts for the pit extension and depletion. A cut-off grade of 0.8 g/t of
gold was applied for the open pit and 3.0 g/t for the underground. East
Bakyrchik initial Ore Reserve estimate was performed as at 1 April 2020. A
cut-off grade for recovered gold of 0.6 g/t was applied for the open pit and
2.0 g/t for the underground, the reserves were estimated on the basis of
variable recovery value for each of the blocks generated.
Kyzyl Ore Reserve estimate
Ore Reserves Tonnage, Gold grade, Gold content,
Mt g/t Moz
Proved
Open-pit (Bakyrchik) 1.4 7.4 0.3
Stockpiles 0.4 5.2 0.1
Total Proved 1.8 6.9 0.4
Probable
Open-pit 25.5 4.8 3.9
Bakyrchik 20.4 5.3 3.5
East Bakyrchik 5.0 2.6 0.4
Underground 32.1 5.8 6.0
Bakyrchik 18.4 7.1 4.2
East Bakyrchik 13.7 4.1 1.8
Total Probable 57.5 5.3 9.9
Proved + Probable
Open-pit 26.9 4.9 4.2
Bakyrchik 21.8 5.4 3.8
East Bakyrchik 5.0 2.6 0.4
Underground 32.1 5.8 6.0
Bakyrchik 18.4 7.1 4.2
East Bakyrchik 13.7 4.1 1.8
Stockpiles 0.4 5.2 0.1
Total Proved+Probable 59.3 5.4 10.3
Notes: discrepancies in calculations are due to rounding
MINERAL RESOURCES
The Mineral Resources estimate is reported in accordance with the JORC Code
(2012) and was prepared by Polymetal using a gold price of US$ 1,200/oz. For
the Bakyrchik open pit and underground the previous estimate was performed
as at 1 July 2019, the updated estimate was prepared as at 1 April 2020 and
accounts for the pit extension and depletion. Cut-off grades of 0.8 g/t and
3.0 g/t of gold were applied for the open and the underground, respectively.
East Bakyrchik updated Mineral Resource estimate was performed as at 1 April
2020. A cut-off grade for recovered gold of 0.6 g/t was applied for the open
pit and 2.0 g/t for the underground, the resources were estimated on the
basis of variable recovery for each of the blocks generated. The Mineral
Resource estimate for Bolshevik was prepared by Polymetal as at 1 January
2019, revised estimate was not performed due to lack of material changes.
Cut-off grades for the open pit and the underground are 1.0 g/t and 3.3 g/t
of gold, respectively.
Kyzyl Additional Mineral Resource estimate
Mineral Resources Tonnage, Gold grade, Gold content,
(additional to Ore
Reserves)
Mt g/t Moz
Measured
Open-pit (Bakyrchik) 0.0 2.5 0.003
Total Measured 0.0 2.5 0.003
Indicated
Open-pit 1.8 2.2 0.1
Bakyrchik 0.7 2.2 0.1
East Bakyrchik 0.4 1.2 0.0
Bolshevik 0.7 2.9 0.1
Underground 5.0 4.5 0.7
Bakyrchik 2.1 4.8 0.3
East Bakyrchik 2.5 4.0 0.3
Bolshevik 0.4 6.4 0.1
Total Indicated 6.8 3.9 0.9
Measured + Indicated
Open-pit 1.9 2.2 0.1
Bakyrchik 0.8 2.2 0.1
East Bakyrchik 0.4 1.2 0.0
Bolshevik 0.7 2.9 0.1
Underground 5.0 4.5 0.7
Bakyrchik 2.1 4.8 0.3
East Bakyrchik 2.5 4.0 0.3
Bolshevik 0.4 6.4 0.1
Total Measured + Indicated 6.8 3.9 0.9
Inferred
Open-pit 3.9 2.3 0.3
Bakyrchik 0.4 2.0 0.02
Bolshevik 3.5 2.3 0.3
Underground 4.9 5.6 0.9
Bakyrchik 2.4 6.4 0.5
East Bakyrchik 0.6 3.7 0.1
Bolshevik 1.9 5.2 0.3
Total Inferred 8.7 4.1 1.2
Measured + Indicated +
Inferred
Open-pit 5.7 2.3 0.4
Bakyrchik 1.2 2.1 0.1
East Bakyrchik 0.4 1.2 0.02
Bolshevik 4.2 2.4 0.3
Underground 9.8 5.1 1.6
Bakyrchik 4.5 5.7 0.8
East Bakyrchik 3.1 4.0 0.4
Bolshevik 2.2 5.4 0.4
Total Measured + Indicated 15.6 4.0 2.0
+ Inferred
Notes: discrepancies in calculations are due to rounding.
Competent persons
This estimate was prepared by employees of JSC Polymetal Management Company,
JSC Polymetal Engineering and 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 19 years' experience in gold, silver and
polymetallic mining. Being a Fellow of the Institute of Materials, Minerals
& Mining (FIMMM), 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 34 years'
relevant experience;
? Mining and Ore Reserves: Open Pit Bakyrchik - Anton Ignatov, Chief
Specialist for Open-pit Mining, Technical Department, Polymetal Management
Company, MIMMM, with 17 years' relevant experience; Open Pit East
Bakyrchik - Dmitriy Teterin, Head of Mineral Resources and Ore Reserves
Audit Department, Polymetal Engineering, FIMMM, with 11 years' relevant
experience; Underground - Andrei Somov, Head of underground mining
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