20th Dec 2007 12:39
OJSC Polyus Gold20 December 2007 For immediate release Moscow, December 20, 2007 The State reserves committee (GKZ Rosnedra) confirmed the reserves of Titimukhtadeposit and got them listed with the state reserves balance. The licence holderof Titimukhta deposit is ZAO Polyus, a wholly-owned subsidiary of OJSC PolyusGold (RTS, MICEX and LSE - PLZL). The Titimukha deposit was discovered in 1991; in 2004-2007 ZAO Polyus carriedout exploration works at the deposit. Following the exploration works Titimukhtabalance reserves under C1+C2 categories amounted to 27 million tonnes of ore and82.8 tonnes of gold (2 663 k oz) at the average grade 3.06 g/t. In addition tothat, off-balance reserves in pit outline amounted to 7.8 tonnes (250 k oz) ofgold at the grade 0.53 g/t. The conclusion of the GKZ Rosnedra experts' commission confirms that thegeological and mining conditions of Titimukhta are favorable for the open pitmining down to the level 300 meters, with the depth of the pit equaling to 350meters. Basic parameters of the Titimukhta development project have been earlierapproved by the Board of Directors of Polyus Gold. According to the approvedproject, the annual ore processing capacity will amount to 1.5 million tonnes in2009 and will increase to 2.2 million tonnes beginning in 2010. The average goldproduction will amount to 3.7 tonnes (119 k oz) in 2009 and will reach 5.3tonnes (170 k oz) in 2010. According to the decision taken by the Board ofdirectors of Polyus Gold, the total investments into the project (lessexploration expenses) for the period 2006-2010 will amount to $98.7 million(excluding VAT). General Director of OJCS Polyus Gold Evgueni Ivanov noted that the Titimukhtadevelopment project is a part of the company's Strategy till 2015 approved bythe Board in September 2006. Mr. Ivanov also mentioned that Titimukhta islocated in immediate proximity to Polyus' Olimpiada deposit. "Titimukta willbecome feed provider for Olimpiada, - Mr. Ivanov said, - and the existingindustrial and social infrastructure of Olimpiada will be used for Titimukhtadevelopment". The ore mined at Titimukhta will be processed at Mill-1 ofOlimpiada mine, after the modernization works are carried out in the year 2008". Note for editors: Polyus Gold is the largest gold producer in Russia. In 2006 its gold outputtotaled 1.2 million ounces. Headquartered in Moscow, Polyus Gold's operatingmines and development/exploration projects are located in five major gold miningregions of Russia - Krasnoyarsk, Irkutsk, Magadan, Amur regions and the Republicof Sakha (Yakutia). For further information please contact For press: Victoria V. Vergelskaya, PR DirectorElena D. Evstigneeva, Media Relations+7 (495) 641-3365+7 (495) 544-5496 [email protected] For investors: Alexey V. Chernushkin, Director, CM and IR Evguenia V.Buydina, IR manager +7(495) 641-3377 +7(495) 785-4031 [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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