PJSC Polyus (MOEX — PLZL) («Polyus», or the «Company»), the largest gold producer in Russia, notes that the Government of the Russian Federation published today a formal announcement of the results of the auction for the license for the Sukhoi Log deposit, one of the largest undeveloped gold deposits globally and the biggest gold greenfield project in Russia.
According to the Governmental order affirming the results of the auction, SL Gold Limited Liability Company («SL Gold»), a company established by JSC Polyus and LLC «RT Business Development» («RT»), will be granted the right to develop Sukhoi Log for the exploration works and extraction of gold and silver.
As previously announced on 26 January 2017, SL Gold submitted the highest bid during the auction for the license for the Sukhoi Log deposit held by the Federal Agency for Subsoil Use («Rosnedra»), with a total amount of RUB 9.4 billion (of which RUB 8.5 billion was prepaid by SL Gold on 21 December 2016).
Following the Government’s announcement, Rosnedra will issue the license for the Sukhoi Log.
Subject to obtaining the license, 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 that study, the Company will evaluate options to initiate construction activities at the Sukhoi Log.
Sukhoi Log Deposit
The deposit was discovered in 1961 when prospecting and evaluation works were conducted during the Bodaybo expedition, which lasted from 1959 to 1963. 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 LLC «RT Business Development», a wholly owned subsidiary of State Corporation Rostec. JSC Polyus will be responsible in the 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
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