27th Mar 2015 07:50
LONDON (Alliance News) - Polymetal International PLC Friday said its ore reserve and grades increased during 2014, mainly due to the acquisition of the Kyzyl project, but said its mineral resource decreased.
The FTSE 250 precious metals mining company said its total ore reserves increased in 2014 to 21.6 million ounces of gold equivalent after the company acquired the Kyzyl project in Kazakhstan and updated its reserves at multiple sites, which increased the reserve by 6.7 million ounces.
However, its mineral resource, which is in addition to the ore reserve, fell by 12% in 2014 due to resource-to-reserve conversion at Albazino and Svetloye, both in Russia, alongside a more conservative resource estimate for its underground mining operations. The measured, indicated and inferred mineral resource now stands at 14.6 million ounces of gold equivalent, down from 16.7 million ounces at the beginning of 2014.
The average ore reserve grade rose by 16% to 4.3 grammes of gold per tonne, whilst the mineral resource grade also increased by 14% to 4.2 grammes of gold per tonne. Polymetal said the Kyzyl acquisition was the main driver to the increases.
"I am pleased to report meaningful expansion of our reserve base. Our investment in exploration, both greenfield and brownfield, despite the current weak commodity price levels, is one of the core pillars of our strategy," said Vitaly Nesis, chief executive of Polymetal.
By Joshua Warner; [email protected]; @JoshAlliance
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