JSC Polymetal («Polymetal») is pleased to announce positive geological results from active exploration at the licensed Dukat Ore Field in the Magadan Region
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Geological exploration at the site is conducted by Dukat Geological Exploration, a specialized Polymetal subsidiary. The combined exploration and production license for the Dukat Ore Field is held by Polymetal's Magadan Silver subsidiary, which also operates the Company's Dukat silver deposit.
The 40.6 sq. km. licensed area in the Omsukchan District of the Magadan Region is located on the flanks of the Company's operating Dukat deposit.
At the end of Q1 2007, the Company obtained its first geological results from one of its targets in the area, Pereval. The drill hole 08101 at the depth of 271.3 meters intersected a mineralized interval with a width of 112.7 meters at an average head grade of 429.5 g/t. Within this interval several higher-grade intersections included: 15.5 meters at 844.8 g/t; 7.6 meters at 1141.8 g/t; 2.4 meters at 2162.2 g/t; and 4.1 meters at 1787.8 g/t.
The drill hole 08102 intersected 10.0 meters of mineralization at the depth of 358.4 meters with an average head grade of 289.1 g/t. Preliminary results from the drilling suggest that the ore-bearing zone is approximately 300 to 400 meters in length and open along strike in both directions. The zone is located approximately 30 km from the Dukat deposit and 1 km from the road that connects Dukat with Lunnoye. Lunnoye is operated by Silver Territory, another subsidiary of Polymetal.
Preliminary results indicate that this zone may lead to a substantial increase in Dukat's mineral resource base with the potential to feed the existing plant, which is currently being expanded to a capacity of 1.5 Mtpa.
The Company has already carried out 1,000 meters of drilling at the site and expects to complete an additional 3,000 meters of drilling in 2007. The overall exploration program at the project calls for 19,000 meters of drilling, geochemical prospecting and trenching.
Polymetal plans to complete a JORC-compliant mineral resources and reserves audit at the Start-2 area of Dukat Ore Field during the third quarter of 2007.
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International Investor Relations Department