16th Nov 2015 07:51
LONDON (Alliance News) - Polymetal International PLC Monday said it has completed a feasibility study for its Kyzyl gold project in Kazakshtan, which gave an 8% increase in total probable ore reserves for the Bakyrchik deposit at Kyzyl.
In accordance with joint ore reserves committee code, total probable ore reserves at the Bakyrchik deposit at Kyzyl are estimated at 29.2 million tonnes at the average grade of 7.7 grams per tonne gold, with 7.3 million ounces of contained gold. This is increased 8% from its previous estimate.
Mineral resources are estimated at 12.4 million tonnes of ore at an average grade of 6.8 grams per tone of gold, containing 3.1 million ounces of gold.
The feasibility study confirmed the economic viability of Polymetal's development approach, it said, which incorporates a 1.8 million tons per annum open pit to be mined for the first 10 years followed by 12 years of underground mining at 1.2 million tones per annum.
Initial capital expenditures are estimated at USD328 million, with a further USD69 million to be invested in pre-production stripping in 2016-17.
Polymetal is on track to start full-scale construction in the second quarter of 2016, with processing to start in the second half of 2018 and the first full year of production in 2019.
"I am pleased to report the results of the Kyzyl feasibility study that confirmed the robust economics of the project and endorsed our development approach. With significantly reduced capital expenditure, compelling high grade reserves and straightforward execution plan, Kyzyl is set to become a significant free cash flow contributor for Polymetal," said Chief Executive Officer Vitaly Nesis in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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