Polymetal announces initial JORC-compliant Ore Reserve estimate for Prognoz of 142 Moz of silver ('Ag') at 560 g/t.
'The estimate confirms that Prognoz is one of the best silver development projects globally', said Vitaly Nesis, CEO of Polymetal. 'We will continue to advance the project towards development'.
The initial JORC-compliant open-pit Ore Reserve estimate as at 1 March 2020 comprises 7.9 Mt of ore with an average Ag grade of 560 g/t containing 142 Moz of silver. Reserves have been assessed for Glavnaya (Main), Boloto (Swamp) and Yuzhnaya (Southern) ore zones only.
Reserve estimate is based on US$ 15/oz silver price with silver representing approximately 90% of value contained at this price level.
Mineral Resources additional to Ore Reserves are estimated at 5.6 Mt of mineralized material with an average grade of 552 g/t for 100 Moz of silver contained.
The Preliminary Feasibility Study assumes 9 years of open-pit mining with conventional flotation flowsheet producing clean high-grade concentrate.
The Company expects average annual production of 13.5 Moz of payable silver at AISC in the range of US$ 8-9/oz.
Total project's capital expenditures are expected to amount to US$ 319 million comprising US$ 250 million of pre-production CAPEX (including pre-stripping costs) and US$ 69 million of maintenance CAPEX.
Prognoz is the largest undeveloped primary silver deposit in Russia. The license is located in the Verkhoyansk municipal district in the Republic of Sakha (Yakutia), Russia. The property is located approximately 980 km from the regional center of Yakutsk (population of 300,000) and 720 km by road from Polymetal's Nezhda project.
Silver-copper-lead-zinc mineralization, represented by quartz-carbonate-sulphide veins, is located in a sequence of sedimentary rocks composed of Triassic sandstones and siltstones. Nine mineralised zones are defined, with Main and Swamp being the largest. Mineralized material is partially oxidised with the depth of weathering varying widely dependent on relief and proximity of water table. The deposit lies in a mountainous region with elevations ranging from 300 m - 1,100 m above sea level. The local topographic relief in the area of the exploration ranges in elevation from 300 m to 350 m.
In April 2018, Polymetal consolidated 100% in the asset. In October 2018, the Company completed JORC-compliant Mineral Resource estimate of 237 Moz of silver at 731 g/t.
Polymetal International plc (together with its subsidiaries - 'Polymetal', the 'Company', or the 'Group') is a top-10 global gold producer and top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.
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