Release time	IMMEDIATE                                                        LSE, MOEX, AIX: POLY / ADR: AUCOY
Date	20 January 2022

 

 

Polymetal International plc

Pavlov initial Mineral Resource estimate

Polymetal announces an initial JORC-compliant Mineral Resource estimate for the Pavlov property of 0.7 Moz of gold.

"Substantial high-grade open-pit resources at Pavlov demonstrates the success of Polymetal's approach to greenfield exploration. We started from scratch and delivered a six-year LOM extension for Voro for less than US$ 5 million. The potential for a standalone operation is also high as we continue drilling", said Vitaly Nesis, Group CEO of Polymetal.

Highlights

• The initial open-pit Mineral Resource estimate as at October 1st, 2021 comprises 9.7 Mt of mineralised material with an average Au grade of 2.7 g/t containing 0.7 Moz of gold. Resource estimate is based on US$ 1,500/oz gold price.
• The deposit is represented by free-milling ore which can be processed at Polymetal's Voro and Varvara mills.
• The resource estimate is based on data from 142 drill holes with a total length of 14.9 km completed by Polymetal in 2020-2021. Total exploration capital costs amounted to US$ 4.8 million, an average of US$ 7 per ounce of gold resources.

MINERAL RESOURCE STATEMENT

The Mineral Resource estimate is reported in accordance with the JORC Code (2012) and was prepared by Polymetal as at 1 October 2021 using US$ 1,500/oz gold price. A cut-off grade of 0.9 g/t was applied for the primary ore and 1.0 g/t for the oxidized ore. Any discrepancies in calculations are due to rounding.

Pavlov Mineral Resources

	Tonnage, Mt	Au Grade, g/t	Au Content, Koz
Indicated (Open-pit)	2.4	3.3		257
Inferred (Open-pit)	7.2	2.0		471
Total Indicated + Inferred	9.7	2.3		727

ABOUT Pavlov

Pavlov deposit is located in the Nizhnyaya Salda municipality of the Sverdlovsk region (population of 18,000), 7 km east from the city limits. The property is 330 km away from Voro and 740 km from Varvara by railway. The region is characterized by low agricultural population density and excellent industrial infrastructure (grid power, railways and paved highways).

Presence of gold in the region was first discovered in 2005-2007 in the course of government-funded advanced geochemical exploration. In 2018, Polymetal's analysed publicly available exploration report and successfully applied for the 65 km2 license area on "first come first served" basis.

In 2019, the Company carried out geochemical exploration. As a result, an intense gold geochemical anomaly was localized, which was confirmed by RC drill holes. Subsequently, a preliminary assessment of the identified mineralisation was carried out along strike and to the depth of up to 100 m using diamond core drill holes on a wide-spaced grid. In 2020-2021, the evaluation of the Pavlov along the strike and to a depth of up to 200 m continued with drilling on a regular 80-40x40 m grid.

Mineralisation is localised in the contact zone between altered and volcanogenic-sedimentary rocks. It is represented by a series of medium-dip (30-45 degrees) structures with an average true width of 8 m and a length of up to 1 km. Mineralised zones are characterised by intense carbonate-quartz alteration with disseminated sulfides (1 to 8%).

The potential parameters of the open pit used to estimate the Mineral Resources are as follows: length - 1,200 m, width - 575 m, depth - 170 m.

The metallurgical properties of mineralized material make it possible to apply conventional whole-ore cyanidation (CIP). 635 ore samples were tested by Polymetal Engineering to estimate potential gold recovery and other process characteristics. Gold recovery in the tests averaged 88% with cyanide consumption of less than 1 kg/mt.

Potential increases in Mineral Resources at Pavlov and adjacent areas are associated with known geophysical resistivity anomalies bearing strong similarity to the geophysical signature of the main mineralised zone. 

The next milestones at the property include:

1. Mineral Resource update in Q1 2023
2. Initial Ore Reserve estimate in Q3 2023
3. Mining license approval in Q4 2023
4. PFS of property development in Q1 2024

Figure 1 Pavlov geological cross-section 

 

Competent persons

This estimate was prepared by employees of JSC Polymetal Management Company, led by Mr Andrey Gottman.

Mr Gottman is employed full-time as the chief exploitation geologist chief exploitation geologist JSC Polymetal Engineering and has more than 20 years' experience in gold, silver and polymetallic mining. He is a Member of the National Association for mineral resources assessment.

All the above-mentioned 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 (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-10 global gold and 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 & Co. International plc Andrew Foster Richard Brown Panmure Gordon John Prior Rupert Dearden	+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.