Polymetal Inter-Regional Research-and-Production Association redirects investment flows into more promising programs.
Polymetal Inter-Regional Research-and-Production Association has sold shares in its subsidiary, Joint-Stock Company South-Ural Gold Mining Company, which conducts development and mining of Kirovskoye deposit in Orenburg Region.
This is because Polymetal is now concentrating on intensive development, maximum effective use of financial and technological resources, improvements in the operation of subsidiaries and its own organizational potential, and thus there is redirection of investment flows into new promising programs. Shares were sold to a foreign mining company, interested in operating in Russia and investing in exploration, development and mining of precious metals.
Closed Joint-Stock Company South-Ural Gold Mining Company (part of Polymetal since 1998 with 90% of shares belonging to Polymetal) conducts development of oxidized ores at the Kirovskoye deposit in Orenburg region. Mineable reserves of the deposit are 1.5 tons of gold. During the stage of pilot production, the company produced 1040 kg of gold and 550.7 kg of silver, developing balance reserves of the largest ore body out of three.
Currently operations of gold recovery from (previously prepared) ore stockpiles using the heap-leaching method continue. The extraction coefficient is 0.75. While Polymetal has a modern strategy of remaining profitable, and mining precious metals at various developed deposits, the main focus is on developing deposits with gold and silver reserves of 50 tons or more, as at Vorontsovskoye, Lunnoye, Ducat, etc. The Ural region still remains one of the top priority development areas for Polymetal. It is a region where the company"s experts identify positive results of exploration and mining of gold. Alongside the development of the Vorontsovskoye deposit (Sverdlovsk region, Krasnoturinsk district), Polymetal has a large-scale program of prospecting and evaluation at promising territories in the north of Sverdlovsk region, in Chita region and in Khabarovsk territory. No less significant among Polymetal activities is the project of Aganozerskoye chrome iron ore deposit development in Karelia, included in the federal program "Ore" and in the program "Development of subsurface and development of Karelia Republic mining complex in 2000-2010".
It is anticipated that within three years, surveying of the deposit will be completed, and the first phase of construction of the Aganozerski gold extraction mill, with an annual output of 300 thousand tons of chromic concentrate, will be organized.
source: Polymetal press release, 29.04.2002