PJSC Polyus (LSE, MOEX PLZL) (Polyus, the Company, and together with the Company subsidiaries, the Group) today presents its update on the development progress at Sukhoi Log.
Polyus has recently completed the scoping study and verification drilling programme at Sukhoi Log. The scoping study has outlined key directions of further geological, engineering and infrastructure development. With the scoping study completed, Sukhoi Log is now entering the pre-feasibility stage.
Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:
We have made serious progress in the development of Sukhoi Log during the last fourteen months following the acquisition of the license. We are now ready to share the key findings of this stage with the market.
Sukhoi Log is a one-of-a kind deposit whose quality and scale are outstanding. We see it as a cornerstone of the future development of Polyus.
While there is a long way to go until the production launch, we are committed to developing the asset in the most disciplined and efficient manner.
The verification drilling programme of 43 thousand metres was completed in May 2018. The logging and interpretation of the verification drilling results are now being finalized.
Based on the currently available data, Polyus sees strong reconciliation of the results of verification drilling and historical exploration programmes done during 1961 1993 in the amount of 318 thousand metres.
The estimated future parameters of the Sukhoi Log project are currently outlined as follows:
The Sukhoi Log processing facility will use conventional gravity/flotation process to treat an average of 30 million tonnes of ore per annum, with two parallel communition lines of 15 million tonnes of ore per annum processing capacity.
Polyus expects a recovery of 8890% to be achieved at the Sukhoi Log Mill. Polyus plans to perform further testwork scheduled for 20182019.
Construction capex for Sukhoi Log is estimated in the range of 2.02.5 billion US dollars.
The investment decision and start of construction capex spending are planned for 20202021. It is expected that production will start in or around 2026 assuming positive investment decision and financing secured.
Prior to the investment decision, Polyus will be spending ca. 30 million US dollars per year for geological and engineering studies at Sukhoi Log. The next update of the economic parameters is expected after completion of the pre-feasibility study.
The drilling programme is expected to continue until 2019 and include 105 km of in-fill drilling (performed in 2018 and 2019); 18 km of geometallurgical, geotechnical, and hydrogeological drilling (performed in 2018); and 31 km of deep levels and flanks drilling (performed in 2019).
Inferred Mineral Resources estimate currently stands at 58 million ounce of gold at 2.0g/t. Measured & Indicated (M&I) Mineral Resources estimate is expected in the fourth quarter of 2018, while Proved & Probable (P&P) Ore Reserves estimate is expected in 2020.
Engineering and processing
With the scoping study being completed, Sukhoi Log is entering the pre-feasibility stage. Results of the pre-feasibility study are expected by the first half of 2020. Results of the feasibility study will be ready by early 2021.
A full presentation on the Sukhoi Log update can be found in the Presentations section on the website of Polyus:http://www.polyus.com/en/investors/presentations/
A conference call for investors and analysts will be held on 7 June 2018 at 11.00 (London) / 13.00 (Moscow) and hosted by the top management of Polyus, including:
To join the conference call, please dial:
+ 44 (0)330 336 9411 (Local access)
0800 279 7204 (Toll free)
+ 1 646828-8143 (Local access)
800347-6311 (Toll free)
+ 7 495 646 9190 (Local access)
8 10 8002 8675011 (Toll free)
Conference ID: 4443643
The call will be recorded and there will be a replay facility as follows:
+ 44 (0) 207 660 0134 (Local access)
0 808 101 1153 (Toll free)
+ 1 719457-0820 (Local access)
888203-1112 (Toll free)
810 800 2702 1012 (Toll free)
Conference ID: 4443643
Polyus is the largest gold producer in Russia and one of the top ten gold miners globally with the lowest cost position. Based on its 2017 Ore Reserves and Mineral Resources, Polyus group ranks second both by attributable gold reserves and gold resources among the world’s largest gold mining companies.
The Polyus group’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic (Yakutia).
Victor Drozdov, Director Investor Relations
7 (495) 641 33 77 firstname.lastname@example.org
Victoria Vasilyeva, Director Public Relations
7 (495) 641 33 77 email@example.com
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.