Albazino-Amursk is the Company’s largest and most prospective project. The project involves processing the Albazino deposit’s ore on site into a flotation concentrate which will then be filtered, dried and delivered by truck and barge to the Amursk POX Plant. Start of commissioning is planned for Q4 2011.

In April 2011 the on-site flotation concentrator at the Albazino mine was successfully started up with first dry gold concentrate bagged. Currently ramping up with one of the two 750Ktpa parallel lines having reached commercial production.

At Amursk POX Plant all equipment is on site with the autoclave and most of high-pressure circuit installed. Structural steel framework for the plant is in place. Autoclave lining and installation of CIL and auxiliary equipment commenced.

The Amursk POX plant is part of the Company’s strategy to create large processing centers. The Amursk POX Plant has the potential to become a processing hub for refractory concentrates from across Russia’s Far East where there are many refractory gold deposits that have not been developed due to the lack of economically viable processing technology.

The decision of autoclaving usage was made after thorough examination of the currently existing procedures of gold recovery from refractory ores. Autoclaving is the most universal way to process refractory concentrates of various composition without significant change in the process. It is relatively energy-consuming and provides high recovery ratio under rather severe conditions. At the Amursk Plant autoclaving for gold production will be introduced for the first time in Russia. The capacity of the Amursk Plant will allow processing 250 000 tons of concentrate per year.

In the end of 2009, JSC Polymetal purchased the Mayaskoye deposit which was included into the Albazino-Amursk project as a resource base. The deposit development envisions receiving the gold concentrate on-site and its further transportation to Amursk hydrometallurgical plant by sea.