26th Mar 2015 07:54
LONDON (Alliance News) - Precious metals miner Polymetal International PLC on Thursday said it has completed an audit of the ore reserves at the Kuytn open pit mining project in Russia but said it is considering its options for the project as it focuses on the Kyzyl project in Kazakhstan.
Polymetal said the study, carried out by Snowden Mining Industry Consultants, has confirmed a total open-pit ore reserve estimate of 3.6 million tonnes of ore at 3.3 grams per tonne of gold, translating to 0.4 million ounces of gold.
Annual average production for the mine is estimated to be 50,000 ounces of gold, with average all-in sustaining costs of USD750 per ounce. The pre-production capital expenditure estimate for the mine is USD52 million, Polymetal said.
Polymetal said it is considering its strategic options for the project, including a sale or establishing a joint venture.
"We are pleased with the results of exploration work at Kutyn. This capital-light heap-leaching project has excellent potential to generate cash flows in the medium-term; it also offers upside from conversion of the underground resources to ore reserves and a further exploration upside," said Vitaly Nesis, Polymetal's chief executive.
"However, we are now focused on development of the Kyzyl project which is our key priority project and we will, therefore, consider sale or partnership to advance the development of the asset," Nesis added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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