Press releases

Sukhoi Log Pre-Feasibility Study Highlights

PJSC Polyus (LSE, MOEX — PLZL) (“Polyus”, or the “Company”) provides an overview of the key highlights of the Pre-Feasibility study (“PFS”) for Sukhoi Log.

The PFS has identified the preferred development approach for confirming the economic viability of Sukhoi Log, in addition to selecting key areas of the project for further in-depth analysis.

With the Pre-Feasibility study now complete, Sukhoi Log is progressing to the Feasibility Study stage (“FS”).

Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:

Since the acquisition of the Sukhoi Log development license in February 2017, Polyus has been working to uncover the full potential of Sukhoi Log.

The detailed Pre-Feasibility study, completed by our in house team in partnership with best international consultants, indicates that the project’s key operating metrics will be even stronger than suggested by the Scoping Study, and confirms Sukhoi Log as a long-life project with an outstanding cost profile.

The completion of the PFS represents a significant milestone in moving Sukhoi Log towards production, and we are now progressing to the Feasibility Study stage, which will enable us to come up with a more precise technical and financial analysis of the project.

Sukhoi Log is a greenfield project of unparalleled quality and scale. We are committed to developing the world’s largest untapped gold deposit, the cornerstone of Polyus’ long-term growth strategy, in the most disciplined and efficient way.

Pre-Feasibility study highlights

The estimated parameters of the Sukhoi Log project are currently outlined as follows:

Scoping Study (2018)

PFS (2020)

Mill throughput capacity

30.0 mtpa

33.2 mtpa

Recovery rate

88 — 90%


Average annual production, LOM

ca. 1.6 moz

ca. 2.3 moz1

Total cash cost

$420 — 470/oz


Initial Construction Capex

$2.3 bln

$3.3 bln

1As per JORC reserve estimate

Sukhoi Log is designed as a conventional load-and-haul open pit mine utilizing electric rope shovels with a nominal payload of 100 tonnes, combined with mining trucks with a nominal payload of 300 tonnes, but the final decision will be made at the Feasibility Study stage.

The ore will undergo primary crushing, SAG and ball milling, gravity concentration, and flotation. Gold from flotation concentrate will be recovered by CIL and electrowinning.

The PFS findings suggest an improvement on the Scoping Study stage estimates of processing capacities, recovery rate and average annual production. The PFS also assumes lower TCC, compared to the Scoping Study stage estimates.

  • The mining and processing schedule now targets processing capacity of 33.2 million tonnes per annum, compared to 30.0 million tonnes per annum as per the Scoping Study. The requisite mining capacity stands at 168 million tonnes per annum.
  • Estimated recovery rate now stands at 92%, following the completion of a comprehensive testwork program under the PFS project. Based on the outcomes of the Scoping Study, the recovery rate was expected to stay within the range of 88-90% taking into account preliminary laboratory processing tests.
  • Forecast average annual production increased to 2.3 million ounces, compared to 1.6 million ounces, according to the Scoping Study.
  • The PFS has refined the TCC estimate for Sukhoi Log, which is now expected to average $390 per ounce over the asset’s life of mine. This is below the Scoping Study TCC estimate of $420-470 per ounce and reflects changes in assumptions related to forecast processing capacities and recovery rate.

Initial construction capex for Sukhoi Log is now forecast at $3.3 billion, exceeding the Scoping Study estimate of $2.3 billion. This increase reflects the following factors:

  • Higher estimated spending on mining equipment following a comprehensive update of the mining plan with a focus on optimising mining and stripping volumes to ensure a smooth ramp-up and optimal grades in processing.
  • Increased throughput capacity from 30 million tonnes per annum to 33.2 million tonnes per annum.
  • Flowsheet upgrade, including the introduction of flash flotation technology.
  • Higher infrastructure spending as a result of increased mining and processing capacity.
  • Accumulated inflation from 2017 to 2020.

Next steps

Factoring in the extended lead-time for engineering documentation preparation as well as possible delays in delivery of key equipment, the Company now plans to release the Feasibility Study results in the second half of 2022, followed by the final investment decision, and assume hot commissioning and the first gold being poured in 2027.

During the development of the Feasibility Study, Polyus will run a more accurate technical and financial analysis of the selected development approach for Sukhoi Log. The results of the FS will serve as the basis for a final investment decision on the project.

Polyus is currently carrying out an Environmental and Social Impact Assessment (ESIA) to evaluate the likely impacts prior to the investment decision.

A full presentation on the Sukhoi Log update can be found in the Presentations section of Polyus’ website:


Polyus is the world’s fourth-largest gold mining company by production volumes and one of two gold miners with the largest attributable gold reserves. The company demonstrates the lowest production costs among major global gold producers.

Its principal operations are located in Siberia and the Russian Far East: Krasnoyarsk, Irkutsk and Magadan regions and the Republic of Sakha (Yakutia).

Investor and Media contact
Victor Drozdov, Director Communications & Investor Relations (CIR) Department

Forward looking statements

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.