MOSCOW, Oct 22 (Reuters) - Russia's largest gold producer
Polyus said on Thursday its giant Sukhoi Log gold
deposit in Siberia is the world's biggest by reserves.
Polyus and its partner bought the rights to develop Sukhoi
Log, estimated to contain a fifth of Russia's gold reserves,
from the Russian state in 2017.
"This estimate ranks Sukhoi Log as the largest gold deposit
both among greenfield assets and operating gold mines," Polyus
said in a statement.
Reserves of Sukhoi Log are estimated at 540 million tonnes
of ore, containing 40 million troy ounces of gold. The average
grade is 2.3 grammes of gold per a tonne of ore, Polyus said.
It is more than reserves of Seabridge's KSM project
in Canada, which are estimated at 38.8 million ounces.
The update on Sukhoi Log was prepared by AMC Consultants in
compliance with the gold mining industry's standard JORC Code,
The additional 40 million ounces of gold also secures
Polyus' position as the world's leading gold mining company by
attributable reserves, along with Newmont.
Polyus, which previously estimated the cost of the project
at $2-2.5 billion, plans to provide the next update on Sukhoi
Log by the end of 2020, with the announcement of pre-feasibility
Last month it said it would buy the remaining 22% stake in
the deposit that it does not already own from project partner
Rostec for $128 million.
(Reporting by Polina Devitt and Anastasia Lyrchikova; editing
by Mark Potter and Alex Richardson)