Polymetal says to start gold production at Veduga field in 2025

MOSCOW, Nov 8 (PRIME) -- Russian gold producer Polymetal International plans to start production of gold at the Veduga field in April–June 2025, with capital investment of U.S. $447 million, the company said in a statement on Monday.

"The large high-grade reserve base, robust economics, and a clear execution path to significant cash flows underpinned the Board’s decision to approve Veduga,”said Vitaly Nesis, Group CEO of Polymetal. “The management is currently planning full consolidation of the asset in H1 2022.”

The field should reach its projected capacity until the end of September 2025, and the average annual gold output should stand at 200,000 ounces. Total cash costs of the field’s output should amount to $725–775 per ounce of gold equivalent, while all-in sustaining costs should reach $800–850 per ounce of gold equivalent.

The updated ore serve estimate of the field stands at 31.9 million tonnes of ore as of February 1, 2021, with an average gold grade of 3.9 grams per tonne, so the reserve amounts to 4 million ounces of gold.

Polymetal owns a 59.4% stake in the Veduga project, and it also has a call option to buy the remaining stake from VTB Bank. The company plans to consolidate the asset after it receives all approvals from state authorities, which should happen in April–June 2022.

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