Ore Reserves and Mineral Resources Update Finally a look at the giant Sukhoi Log
Press Release 29 April 2020
PJSC Polyus
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PLZL/14522280.html
Ore Reserves and Mineral Resources Update
PJSC Polyus (LSE, MOEX - PLZL) ("Polyus", the "Company") announces the results of its Ore Reserves and Mineral Resources review as at 31 December 2019, in accordance with JORC Code 2012. This review only reflects depletion of Ore Reserve and Mineral Resource estimates, and changes to stockpile inventories, and does not include updated models, mine plans and production schedules, which Polyus will derive from the results of the ongoing drilling programme.
Polyus' Proved and Probable Ore Reserves are estimated at 61 million ounces of gold. Later this year, the Company anticipates reporting a Maiden estimate of Ore Reserves for the Sukhoi Log.
The Measured, Indicated and Inferred Mineral Resources are estimated at 188 million ounces of gold, including 63 million ounces of Indicated and Inferred Mineral Resources for Sukhoi Log.
In the first half of 2021, Polyus expects to report revisions to Mineral Resource and Ore Reserve estimates for existing operations incorporating the results of the ongoing drilling programme.
Ore Reserves Highlights
· Polyus' Ore Reserves are estimated at 61 million ounces of gold, down from 64 million ounces as at 31 December 2018.
· Over 90% of the Company's estimated Ore Reserves of gold are located within its operating assets:
o Polyus Krasnoyarsk has the largest share of the Company's Ore Reserves, with 24 million ounces at Olimpiada and 8.8 million ounces at Blagodatnoye.
o Natalka has estimated Ore Reserves of 15 million ounces.
o Ore Reserves at Verninskoye and Kuranakh contain 4.6 million ounces and 4.1 million ounces, respectively.
· The Polyus' Ore Reserve estimate of 61 million ounces has an average of 1.8 g/t.
· Approximately 861 million tonnes of Ore Reserve, containing 54 million ounces of gold out of the total 61 million ounces, are expected to be mined by conventional open pit truck-and-shovel or underground mining methods at a grade of 2.0 g/t. The remaining Ore Reserve totaling 216 million tonnes is lower grade and stored in stockpiles or in situ at the Alluvial operations.
Mineral Resources Highlights
The Company's Mineral Resources are estimated at 188 million ounces of gold, compared to 192 million ounces as at 31 December 2018.
· Approximately 60% of the Company's Mineral Resources are attributable to operational mines:
o Olimpiada's Mineral Resources are estimated at 39 million ounces.
o Natalka Mineral Resources amount to 32 million ounces.
o Blagodatnoye's Mineral Resources stand at 17 million ounces.
o Verninskoye and Kuranakh's Mineral Resources include estimates of 12 million ounces and 8.4 million ounces, respectively.
Exploration Highlights
· Polyus has been conducting a comprehensive drilling programme across its asset portfolio since 2018.
· Following completion of the programme, the Company expects to report updated Ore Reserves and Mineral Resources estimates for existing operations in the first half of 2021.
· At Sukhoi Log, the Company completed an exploration, verification, geotechnical and hydrogeological drilling programme of approximately 222 kilometres launched in 2017.
· In 2020, Polyus plans to proceed with an additional 30 kilometres of in-fill drilling along with additional drilling at flanks and deep levels at Sukhoi Log.
· Later this year, the Company anticipates publishing Maiden estimate of Ore Reserves for Sukhoi Log.
Mineral Resource and Ore Reserve estimates
The Company's Mineral Resource and Ore Reserve estimates are summarized in the Tables below. The effective date for the estimates is 31 December 2019. There is no material change to the base estimates since the original statement on 5 June 2017, apart from mining depletion and an update to the Sukhoi Log Mineral Resource estimate. As a result, there is no requirement to update the JORC Code Checklist of Assessment Criteria (Table 1) summaries.