Polymetal raises ore reserves of Komarovskoye field by 57%

MOSCOW, Oct 11 (PRIME) -- Russian gold producer Polymetal International has increased gold reserves of the Komarovskoye field in Kazakhstan by 57% to 1.374 million ounces, or 42.7 tonnes, Polymetal said in a statement on Wednesday.

The reserves were calculated under the 2012 JORC standards and “incorporates data from 387 diamond drill holes completed after Polymetal had agreed to acquire the asset in April–June 2016,” the company said.

As a result, the company plans to raise processing of ore at the field by 100% to 2 million tonnes a year, which will be transported by railroad to the Varvara processing plant. In January–September 2017, the Varvara plant processed 1.4 million tonnes of ore from the Komarovskoye field.

“The additional Komar ore will replace the lower-grade material from the Varvara deposit and consequently, increase production and result in lower costs at the Varvara processing hub. Mine-to-mill transportation costs for Komar ore are low and come at approximately U.S. $4.5 per tonne. This makes processing Komar ore at the existing plant at Varvara a superior option compared to the construction of a new on-site processing facility in terms of return on invested capital (ROIC),” the company said.

End %%md/jst%%