Polymetal Increases Stake In Dolinnoye Gold Mine In Kazhakstan
Polymetal International PLC said on Thursday that it has increased its stake in the Dolinnoye gold property in Kazakhstan to 50% in a bid to strengthen its nearby processing plant.
Polymetal shares were down 1.5% on Thursday morning at 995.50 pence.
The FTSE 250-listed company bought an additional 25.0% stake in the Dolinnoye deposit for USD1.6 million, adding to its initial 25.0% interest it bought in 2015.
The deal completes an earn-in arrangement between Polymetal and its partner in Dolinnoye for exploration and the preparation of a JORC-compliant reserve estimate for the property.
The Dolinnoye deposit in Kazhakstan is expected to become another source of high-grade free-milling feedstock for the Varvara processing plant.
Based on Polymetal’s 50.0% share, ore reserves comprise of 2.6 million tonnes at 2.4 grammes per tonne of gold for 202,000 ounces of contained gold.
Polymetal said that “additional” mineral resources are forecast at 6.1 million tonnes of ore at 2.5 grammes per tonne, for 494,000 ounces of contained gold.
“This transaction further expands and strengthens our Varvara hub concept”, Polymetal Chief Executive Vitaly Nesis said. “We expect first ore to go through the mill in the third quarter of 2017”.
Separately, Polymetal also said that in order to further enhance the core skills of its board members in finance, mining and institutional investor engagement it is starting a phased refresh of its non-executive directors.
The company said that at least one new director will be appointed at the annual general meeting in 2018, with further appointments to be made in the next two years.
“Over the next few years we will build a pipeline of potential candidates and have multiple appointments to the board. The board is keen to ensure that we continue to have the appropriate balance of skills and experience to support, monitor and challenge the executive team in delivering on the group’s strategy,” Chairman Bobby Godsell said.
LOCATION AND GEOLOGY
The Dolinnoye deposit is located in the Aktogay district of the Karaganda region in the Republic of Kazakhstan. The nearest city, Balkhash (population of 70,000), is approximately 120 km away. The nearest railway spur is 30 km from the property. The site is accessible by a year-round dirt road with access to grid power.
The geology of the property is associated with quartz veins and vein swarms, mainly within carboniferous terrigenous sediments. Resources were estimated for 22 mineralized zones with an average strike length of 150m and an average true width of 3m. Most of these zones remain open at depth, with approximately half open along strike.
Notes: Revised Reserve and Resource estimate prepared by Polymetal as at 01.01.2017 on the basis of an initial Reserve and Resource estimate prepared by CSA as at 28.07.2016. Price: Au = US$1,100/oz.
With reporting by Alliance News