Polymetal is pleased to announce receiving a license for geological survey of gold and silver at the Arkinskiy ore field in the Khabarovsk Territory
The license was granted to Georazvedka, a subsidiary of Polymetal. Georazvedka was the only applicant for the license. The Arkinskiy field was included in the list of prospective licensed areas in the Khabarovsk Region, because of the Company«s initiative.
The government granted Georazvedka a five-year license - valid until March 31st, 2011. Georazvedka is a specialized geological survey and exploration company performing work in the Khabarovsk Region.
The Arkinskiy field is located in the northern part of the Okhotsk Region of the Khabarovsk Territory, 70 kilometers to the northwest of Polymetal«s operating Khakanjinskoye mine. The size of the licensed area is 135km.2 Based on Russian classification standards, the area«s mineral resources are 20 tons of gold (640 th. oz.). In addition, the licensed area potentially has silver resources - although these resources have not been evaluated to date.
The area was discovered at the end of the 1970s and the beginning of the 1980s. Prospecting and survey work indicated several ore-bearing areas. Specialists from the Okhotsk expedition (during this period) discovered vein zones with gold-silver mineralization with an average head grade of 3 g./t. (for gold) and 50 g./t. (for silver). There is particularly strong interest in the Galmarkan-2 mineralization, with gold-silver formation in acid vulcanite composition.
The Company believes that this area has not been sufficiently well-explored. In 2006, Polymetal will develop a detailed program for active geological exploration in the licensed area. No later than the middle of 2007, Polymetal plans to approach the realization of prospecting and estimation work (including, geological-geophysical studies and well drilling). And by 2010, Polymetal plans to calculate reserves in the area and prepare a pre-feasibility study to make a final decision about project development. Based on initial forecasts, the Company expects the licensed area to yield average volumes of minable deposits of gold and silver formations.
The Arkinskiy field offers a potentially promising mineral resource base for the nearby Khakanjinskoye mine.
Obtaining the license for the Arkinskiy field is an important step in Polymetal«s continued strategic development - ensuring that the Company will continue to increase its mineral resource base and extend the life span of its existing deposits (in this case, Khakanjinskoye). To continue to expand existing assets and to effectively build the next generation of assets, the Company must acquire newly licensed areas and promising deposits. In addition to participating in tenders to obtain new licenses, Polymetal also plans to actively boost its geological surveying work at its existing deposits.
source: Investor Relations Department