PJSC Polyus (MOEX — PLZL) (“Polyus”, or the “Company”), the largest gold producer in Russia, is pleased to announce that the Federal Agency for Subsoil Use (“Rosnedra”) has issued a license for the development of the Sukhoi Log deposit, one of the largest undeveloped gold deposits globally and the biggest gold greenfield project in Russia, to SL Gold Limited Liability Company (“SL Gold”), a company established by JSC Polyus and LLC “RT Business Development” (“RT”).
The Company intends to conduct additional exploration works and a feasibility study, which is expected to last for approximately three to four years, supported by international mining and engineering consultants.
Based on the results of the feasibility study, the Company will evaluate options to initiate construction activities at Sukhoi Log.
Sukhoi Log Deposit
Sukhoi Log was discovered in 1961 when prospecting and evaluation works were conducted during the Bodaybo expedition, which lasted from 1959 to 1963. The deposit was extensively explored by Soviet geologists in 1970-1990s. In 2007, GKZ approved the updated reserves following an audit of the reserves and resources of the Sukhoi Log deposit by the Central Research Geological Prospecting Institute of Non-Ferrous and Precious Metals.
According to information provided during the auction process, the deposit’s gold reserves were estimated to be 930.3 mt of ore, grading 2.1 g/t gold for 62.8 moz of contained gold, under the Russian Resource Estimation Standard (“GKZ”).
SL Gold was established by the Company for the purposes of participating in the auction for Sukhoi Log. JSC Polyus, a wholly owned subsidiary of PJSC Polyus, holds a 51 per cent participation interest in SL Gold, with the remaining 49 per cent participation interest held by RT, a wholly owned subsidiary of State Corporation Rostec. JSC Polyus will be responsible within SL Gold for developing and operating the Sukhoi Log deposit.
Polyus (www.polyus.com) is the largest gold producer in Russia and one of the top 10 gold miners globally by ounces produced. The Company also holds the fourth largest mineral resources base in the world.
Polyus group’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic (Yakutia).
In 2015, the Company confirmed its status of one of the lowest-cost gold producers globally.
Victor Drozdov, Director Investor Relations
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Victoria Vasilyeva, Director Public Relations
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Forward looking statement
This announcement may contain “forward-looking statements” concerning Polyus and/or Polyus group. Generally, the words “will”, “may”, “should”, “could”, “would”, “can”, “continue”, “opportunity”, “believes”, “expects”, “intends”, “anticipates”, “estimates” or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.