13th Jul 2015 06:49
LONDON (Alliance News) - Polymetal International PLC Monday said it has acquired the entire licence for the Primorskoye silver-gold property located in the Magadan region of Russia from Decamor Investments Ltd.
The FTSE 250-listed miner said it has paid an initial USD4.5 million to Decamor and will pay a deferred cash consideration later on.
The total amount of the deferred cash consideration will be will be equal to USD13,333 per tonne of contained silver at the project, or USD0.415 per silver equivalent ounce, with the exact amount to be based on an audited reserve estimate, said Polymetal.
Polymetal intends to complete at least 15 kilometres of exploration drilling before the end of September 2016 and plans to obtain an audited JORC-compliant reserve estimate and pay the deferred consideration before the end of 2016.
The Primorskoye property currently has 500,000 tonnes of ore at an average grade of 987 grammes of silver per tonne and 5.8 grammes of gold, equating to around 16.0 million silver ounces and 100,000 gold ounces. However that is under Russian standards and is not compliant with a JORC estimate.
A JORC estimate is the Australasian code for reporting of exploration results, mineral resources and ore reserves and is used worldwide as a professional standard for reporting those results.
By Joshua Warner; [email protected]; @JoshAlliance
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