Reserves and Resources
Click for the audited statements of reserves and resources in accordance with JORC code
One of the Company’s development priorities is to create the optimal portfolio of assets that facilitate a highquality, long-term resource base. Polymetal uses JORC standards to assess its reserves and resources.
Audited existing reserve base will ensure ongoing profitable performance of the Company’s operating gold and silver mines for the next 10–20 years. The Dukat and Lunnoye deposits, which are silver mining units with a significant volume of gold mining as a byproduct, are located in the Magadan Region in Russia's northeast. Khakanja (Khabarovsk Territory) and Voro (Sverdlovsk Region) are gold deposits. Significant amounts of silver are also mined at Khakanja. The Company is currently building a new mine in Albazino which is scheduled to produce its first gold in 2011.
Polymetal JORC-Compliant ore reserves by mining asset (1)
|
Mine |
Tonnage (kt) |
Au Grade (g/t) |
Contained Au(t) |
Contained Au(moz) |
Ag Grade (g/t) |
Contained Ag (t) |
Contained Ag (moz) |
|
Production assets |
|||||||
|
Dukat |
23 835 |
0,9 |
21 |
0,7 |
405 |
9 656 |
310 |
|
Lunnoye |
3 764 |
1,3 |
5 |
0,2 |
406 |
1 529 |
49 |
|
Khakanja |
3 661 |
5,4 |
20 |
0,6 |
245 |
898 |
29 |
|
Voro |
19 154 |
2,8 |
53 |
1,7 |
3 |
62 |
2 |
|
Varvarinskoye (2) |
36 400 |
1,1 |
41 |
1,3 |
- |
- |
- |
|
Subtotal |
86 814 |
1,6 |
141 |
4,5 |
140 |
12 145 |
390 |
|
Development projects |
|||||||
|
Albazino (3) |
17 375 |
4,1 |
71 |
2,3 |
- |
- |
- |
|
Sopka Kvartsevaya (4) |
1 400 |
12,0 |
17 |
0,5 |
260 |
360 |
12 |
|
Subtotal |
18 775 |
4,7 |
88 |
2,8 |
19 |
360 |
12 |
|
TOTAL |
105 589 |
2,2 |
229 |
7,3 |
118 |
12 505 |
402 |
Notes:
(1) Unless otherwise stated, ore reserves are quoted as at January 1, 2009 in accordance with the JORC Code, confirmed by SRK Consulting (UK) Ltd. Reserves are estimated on the basis of Measured and Indicated resources (not accounting for Inferred resources). Underlying price assumptions as audited by SRK Consulting (UK) Ltd. are $600/oz for gold and $11 /oz for silver. Dukat reserves include Nachalnoye-2 satellite deposit, Lunnoye reserves include Arylakh satellite deposit, Khakanja reserves include Yurievskoye satellite deposit.
(2) Estimated by Orsu Metals Corporation as at 01.01.2009 in accordance with the JORC code
(3) Comfirmed by Snowden Mining Industry Consultants Inc. in acordance with the JORC Code in July 2009
(4) Estimated by AMC Consultants in accordance with the JORC Code in 2007
An external audit confirmed Polymetal mineral resources and ore reserves as at December, 31 2008 in accordance with the JORC Code. Gold reserves grew by 47% (1.7 Moz), primarily due to Albazino, which was added to Polymetal’s reserve portfolio in 2008. The Company’s independently audited gold resources grew by 21% (1.4 Moz) as a result of exploration and a re-evaluation of economic conditions in 2008. The growth stemmed primarily from the Birkachan and Oroch deposits, where the Company has been actively developing its resource base in anticipation of the planned commissioning of Kubaka in 2010.
By 2011, the Company aims to increase its gold resources to 12 Moz and its silver resources to 800 Moz as a result of in-house exploration and acquiring new assets. It also seeks to increase its gold reserves to 8 Moz and silver reserves to 600 Moz.
Mineral Resources Statement, as of January 1, 2009 (1)
|
Mine |
Tonnage (kt) |
Au Grade (g/t) |
Contained Au(t) |
Contained Au(moz) |
Ag Grade (g/t) |
Contained Ag(t) |
Contained Ag(moz) |
|
Production assets |
|||||||
|
Dukat |
19 952 |
1,1 |
22 |
0,7 |
534 |
10 652 |
342 |
|
Lunnoye |
8 997 |
1,2 |
11 |
0,4 |
349 |
3 143 |
101 |
|
Khakanja |
5 026 |
5,1 |
26 |
0,8 |
219 |
1 100 |
35 |
|
Voro |
22 751 |
2,8 |
63 |
2,0 |
4 |
92 |
3 |
|
Varvarinskoye (2) |
92 200 |
1,0 |
97 |
3,1 |
- |
- |
- |
|
Subtotal |
148 926 |
1,5 |
218 |
7,0 |
101 |
14 987 |
482 |
|
Development projects |
|||||||
|
Albazino (3) |
21 306 |
4,3 |
92 |
2,9 |
- |
- |
- |
|
Goltsovoye (4) |
2 397 |
- |
- |
- |
895 |
2 146 |
69 |
|
Sopka Kvartsevaya (5) |
13 400 |
2,3 |
31 |
1,0 |
63 |
842 |
27 |
|
Maiskoye (6) |
19 796 |
11,8 |
233 |
7,5 |
- |
- |
- |
|
Perevalnoye |
1 174 |
- |
- |
- |
364 |
427 |
14 |
|
Galkinskoye |
14 237 |
1,3 |
18 |
0,6 |
34 |
480 |
15 |
|
Birkachan & Oroch |
19 434 |
2,5 |
49 |
1,6 |
27 |
528 |
17 |
| Tsokol (7) | 1 300 | 8,1 | 10 | 0,3 | 13 | 17 | 0,5 |
|
Subtotal |
93 044 |
4,7 |
433 |
13,9 |
48 |
4 440 |
143 |
|
TOTAL |
241970 |
2,7 |
651 |
20,9 |
80 |
19 427 |
625 |
Notes:
(1) Unless otherwise stated, mineral resources are quoted as at January 1, 2009 in accordance with the JORC Code, confirmed by SRK Consulting (UK) Ltd.
Measured and Indicated resources are included to the Ore Reserves.
Underlying price assumptions as audited by SRK Consulting (UK) Ltd. are $700/oz for gold and $13.5 /oz for silver.
Dukat reserves include Nachalnoye-2 satellite deposit, Lunnoye reserves include Arylakh satellite deposit, Khakanja reserves include Yurievskoye satellite deposit.
(2) Estimated by Orsu Metals Corporation as at 01.01.2009 in accordance with the JORC code
(3) Comfirmed by Snowden Mining Industry Consultants Inc. in acordance with the JORC Code in July 2009
(4) Estimated by Wardell Armstrong International in accordance with the JORC Code in 2007
(5) Estimated by AMC Consultants in accordance with the JORC Code in 2007
(6) Estimated by Aker Kvaerner in accordance with the JORC Code in 2008
(7) Estimated by SRK Consulting (UK) Ltd as at 31.12.2009 in accordance with the JORC code