JSC Polymetal («Polymetal») is pleased to announce that it has launched mining operations at its Arylakh deposit (the Magadan Region)
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CJSC Silver Territory, a Polymetal subsidiary, has started to operate the open-pit silver and gold Arylakh mine. In February 2007, Polymetal carried out its first stripping work at the deposit and in March 2007 began producing and processing Arylakh ore.
Arylakh, which is Lunnoye's satellite deposit, is located in the Srednekansky area of the Magadan Region, 20 km from Silver Territory's processing plant. The Arylakh deposit was discovered in 1986 and in 1999 CJSC Silver Territory obtained a license for exploration and production of silver and gold at the Arylakh deposit and its flanks (valid until December 31st, 2016). Under the JORC Code, as of September 30th, 2006, proved and probable ore reserves at the Arylakh deposit were 1,660 th. tons with 40 th. oz. of contained gold and 25.2 mln. oz. of contained silver and resources (measured, indicated and inferred) were 1,773 th. tons of ore with 58 th. oz. of contained gold and 32.5 mln. oz. of contained silver.
Polymetal plans to process Arylakh ore at Silver Territory's processing plant, which has a designed production capacity of 300,000 tpa. The designed production capacity of Arylakh is 150,000 tpa.
The plan for the deposit's operation currently provides for open-pit production at the Arylakh deposit to last until 2016.
Vitaly Nesis, Polymetal's CEO, stated: "We believe that the launch of operations at the Arylakh deposit is an important step in the Company's continued development. Operations at Arylakh will help ensure that Silver Territory's processing plant will be able to operate at its full designed production capacity."
International Investor Relations Department
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