Polyus : Mill-5 Presentation

BLAGODATNOYE MILL-5

PROJECT UPDATE

DECEMBER 2020

CURRENT ASSET OVERVIEW

Krasnoyarsk	BLAGODATNOYE
region

25 km

BLAGODATNOYEOLIMPIADA

1 - Production for the last twelve months

JORC	JORC
RESOURCES	RESERVES
		g/t
17.5moz at 1.4	8.8moz at 1.3g/t

	LTM1 VOLUMES		LTM1 RECOVERY
	OF ORE PROCESSED		RATE
9.1 mt	88.4%

Eruda	LTM1	LTM1
	PRODUCTION	TCC
	464koz	354	$/oz

2

BLAGODATNOYE HISTORICAL EXPANSION PLANS OVERVIEW

HISTORICAL MILL-5	INITIAL PROJECT TIMELINE						Combined throughput (Mill-4 and Mill-5) to reach
				8.0-9.0 mtpa via capex-intensive construction project
CONSTRUCTION	2Q 2014 - 4Q 2016									8.0-	8.0-	8.0-
PROJECT	ESTIMATED CAPEX					MILL-5 EXPECTED LAUNCH		9.0	9.0	9.0
REJECTED
ca. $250 mln			6.5	6.5	6.8	6.7	6.5	6.9	7.0	7.0	7.0
	THROUGHPUT EXPANSION	NOMINAL	5.4
Prior to 2014, Polyus had already	to 8.0 - 9.0 mtpa	CAPACITY
AT 6.0 MTPA
considered capex-intensive con-
struction of an additional process-	INCREMENTAL VOLUMES
ing line to expand throughput
ca. 50-100 koz
capacity to 8.0 - 9.0 mtpa	0.5
		2009	2010	2011	2012	2013	2014F	2015F	2016F	2017F	2018F	2019F

MILL-4	PROJECT TIMELINE
EXPANSION	1Q 2015 - 4Q 2019

Mill-4low-cost expansion to 9.0 mtpa via debottlenecking

COMPLETED	CAPEX			LAUNCH OF THE PROJECT					8.7	9.0
	ca. $45 mln							7.5	7.8	8.2
					6.8	7.0
			6.5	6.5
	THROUGHPUT EXPANSION	NOMINAL	5.4
However, Polyus' technical team	to 9.0 mtpa	CAPACITY
	AT 6.0 MTPA
identified a capex-lighttwo-stage
expansion project, which allowed	INCREMENTAL VOLUMES
to increase throughput capacity
ca. 100-110koz
of Mill-4 to 9.0 mt	0.5
		2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019

3

MILL-4 EXPANSION: STAGES 1 & 2

Upgrading and debottlenecking the existing flowsheet

CRUSHING

GRINDING

GRAVITATION

FLOTATION

CIL

1 - Excluding mining fleet procurement

STAGE 1 2014-2017

Installation of pebble crusher

Replacement of pumps with more efficient units

Replacement of trommel screens, lifters and grates of the SAG mill

Replacement of screens with more efficient units

Installation of two additional gravity concentrators and screens

Modification of the KCh-100 agitation tanks into flotation cells Construction of an additional thickener for flotation concentrate Introduction of flotation concentrate regrinding

Replacement of inter-circuit screens with more efficient units Upgrade of CIL tailings thickener

Installation of intensive oxidation column and additional strip columns

	THROUGHPUT		TOTAL		INCREMENTAL
	EXPANSION		CAPEX1		VOLUMES
6.8 to 8.1 mtpa		ca. $ 15 mln	ca. 60-70 koz

STAGE 2 2018-2019

Installation of an ore conveyor to feed the HP-4 core crusher Modernization of the ore dressing facility

Ore feed optimization via Mine-to-Mill

Equipment modernization

Replacement of pumps at hydrocyclones

Introduction of flash flotation technology (SkimAir)

Introduction of high efficiency flotation equipment (Jameson flotation cells) Replacement of the flotation concentrate regrinding mill

Modernization of the filtration section

Further upgrade of the thickening complex

THROUGHPUT		TOTAL	INCREMENTAL
EXPANSION		CAPEX1	VOLUMES
8.1 to 9.0 mtpa		ca. $ 30 mln	ca. 40 koz

4

BLAGODATNOYE COMPLEX: KEY MILESTONES

MILL-4

2009	2011		2014-2019

MILL-5

2020		2021-2024	2025

Commissioning	Exceeding the design
and Ramp-Up	processing capacity
0.5 mtpa processed	Since 2011, Mill-4 at Blagodat-
during the first year	noye has been operating above
of operations	its design capacity

6.0mtpa

Two-stage expansion project

Polyus expanded the throughput capacity via upgrading existing processing circuits and debottlenecking

9.0mtpa

Mill-5 Feasibility Study	Construction	Launch of
/ FID		Mill-5 and
The Feasibility Study for Mill-5		Ramp-Up
suggests construction of a 8.0
mtpa mill, bringing the total pro-
cessing capacity of the Blagodat-
noye complex to 17.0 mtpa

TOTAL PROCESSING CAPACITY

17.0mtpa

5

KEY HIGHLIGHTS OF THE MILL-5 FEASIBILITY STUDY

		25
ADDITIONAL	INCREMENTAL	EXPECTED
CAPACITIES	OUNCES	LAUNCH
	Project's first 5-year average
8.0mtpa	ca. 390koz	2025

KEY OUTCOMES OF THE FEASIBILITY STUDY

MILL-5

Construction of Mill-5 with throughput capacity of 8.0 mtpa

Application of gravity and flotation flowsheet, similar to existing flowsheet at Mill-4

Processing of mix of in-situ and the low-grade stockpiled material

Introduction of In-pit Crushing and Conveying (IPCC) system to deliver ore to Mill-4 and Mill-5

Pit expansion down to -70mrl to provide Mill-5 with a sufficient amount of ore feed

MILL-4

PROCESSING

CAPACITY

9mtpa

MILL-5

PROCESSING

OPEN PIT SURFACE CAPACITY

8 mtpa

+CA. 240 MRL

CURRENT MINING ACTIVITIES

−20 MRL	TOTAL
PROCESSING
DESIGN PIT SHELL FOR MILL-4 ONLY
CAPACITY
−70 MRL	17mtpa
DESIGN PIT SHELL FOR MILL-4 & MILL-5

6

GENERAL LAYOUT

The layout allows to optimize earthworks across the mill site

BLAGODATNOYE MILL EXPANSION TO 17 MTPA

Blagodatnoye (current layout) New Mill-5 facilities

Maximum synergy with the existing Mill-4 facilities and utilities

(maintenance shop, tailings storage facility, auxiliary facilities of the mill, power plant and pit infrastructure)

HYDROMET 4

CRUSHED ORE STOCKPILE

IPCC CONVEYOR

SECONDARY CRUSHING BUILDING

ORE MILLING CIRCUIT 4

ORE STOCK YARD

MILLING CIRCUIT 5

FLOTATION REAGENTS PREPARATION

HYDROMET 5

THICKENING CIRCUIT

ADMIN BUILDING

OXYGEN COMPRESSOR STATION

THICKENING CIRCUIT

7

IN-PIT CRUSHING AND CONVEYING (IPCC) AT BLAGODATNOYE

Following the completion of trade-off studies, the FS assumes using the in-pit crushing and conveying option instead of conventional truck delivery

	Mill-4 and Mill-5
Pit	3
	2
	1

Coarseness	Coarseness
of the feed	of crushed material

1,000 mm 250 mm

1	CRUSHING FACILITY

Utilizationfactor:0.8

Ore hopper

Gyratory crusher

Reclaim conveyor

3 CRUSHED ORE STOCKPILE

6 pc

Optimal layout and number

of feeders

2 MAIN CONVEYOR

Motor:

3 × 1,100 (3,300) kW

Tension station

20mtpa

Main crusher and main conveyor throughput

8

PROCESSING FLOWSHEET DESIGN

Similarly to the existing Mill-4 flowsheet, gravity and flotation was selected as the optimal processing option

CONVENTIONAL GRAVITY - FLOTATION SCHEME

OPEN PIT	CONVEYOR	BALL MILL	8.0mt
			nominal throughput
			capacity

SECONDARY CRUSHER

FLOTATION	CYANIDATION	87.9%
SAG MILL
		recovery rate
		Project's first 5-year average

ADDITIONAL IMPROVEMENTS	GRAVITY	FLASHFLOTATION	CARBON-IN-LEACH	1.4g/t
TO THE PROCESS FLOWSHEET
Roll-out of IPCC (main conveyor)				average grade
			in ore processed1
High-performance concentrators at the mills			ELECTROWINNING
discharge (previously at cyclones underflow)			390koz
Screens at the SAG mill discharge			ca.
Larger equipment (scavenger flotation, CIL)
Additional ore feed line to the ore milling circuit		SMELTING		gold production
via the secondary crushing building
			Project's first 5-year average
				1 - Life of Mine	9

KEY PROJECT ECONOMIC METRICS

CAPEX	TCC
$ mln	$/oz
INCLUDING PROCUREMENT	50%
OF MINING FLEET

12%	62%
IPCC	Mill-5
	construction

13%
Additional	600mln
mining	27%

equipment	$
13%
Infrastructure	22%

1%

Processing costs

Project's first

5-year average

Mining

and haulage $ 320/oz costs

MET

Other

KEY MACROECONOMIC ASSUMPTIONS

GOLD PRICE

$ 1,200/oz

FX

65 rub/usd

FINAL

INVESTMENT

DECISION

The Board of Directors has approved Mill-5 construction applying the IRR hurdle of not less than 20%

REGIONAL

INVESTMENT

PROJECT

Polyus will apply for a tax relief under the Regional Investment Project program

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PROJECT TIMELINE

2020

2021

2022

2023

2024

2025

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FID

DOCUMENTATION

Project design documentation

EQUIPMENT

Supply of long-lead equipment

CONSTRUCTION & INSTALLATION

Site preparation, construction of foundations

Selection of Mill-5 construction contractor

Construction and installation

RAMP-UP

Pre-commissioning and ramp-up

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