1st Mar 2021 09:10
(Alliance News) - Polymetal International PLC on Monday reported "substantial" increases in its total group ore reserves throughout 2020.
The FTSE 100-listed gold and silver producer said group ore reserves increased by 10% year-on-year to 27.9 million ounces gold equivalent, driven by initial ore reserve estimates at East Bakyrchik in east Kazakhstan, and Prognoz and the Pesherny deposit at the Voro hub, both in Russia.
Polymetal said share of ore reserves for open pit mining stood at 53%, up two percentage points from 2019, while share of refractory reserves declined two percentage points to 72%. Both of these developments are attributable to the Prognoz reserve initial estimate, it added.
The company reported its share of silver in ore reserves increased by five percentage points year-on-year to 11%, also due to the "significant" contribution from Prognoz.
Polymetal said it maintained conservative price assumptions for both ore reserve and mineral resource estimates at USD1,200 per ounce for gold and USD15 per ounce for silver respectively. Short-term price assumptions used for tactical mine planning and sequencing are USD1,500 per ounce and USD20 per ounce respectively.
"We delivered maiden reserve estimates at several of our projects resulting in a substantial increase in total group ore reserves. We are confident in our ability to continue per share reserve accretion while maintaining conservative price assumptions. This year we are going to significantly advance our greenfield exploration with the aim of extending resource base at a relatively low finding cost," said Chief Executive Vitaly Nesis.
During 2021, Polymetal said continue to invest in both near-mine and greenfield exploration projects in order to increase ore reserves. It also plans to increase activity levels in greenfield exploration, including commencing of drilling campaigns at several joint ventures with juniors.
Shares in Polymetal were up 2.0% at 1,449.50 pence in London on Monday.
By Zoe Wickens; [email protected]
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