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Kapan Quick facts

Location South-eastern Armenia
Mining underground
Processing 750 Ktpa flotation concentrator
Mineral resources* 2.6 Moz GE, 5.1 g/t average GE grade


Kapan mine was acquired by Polymetal International in 2016 and represents its first operating asset in Armenia. The asset comprises a fully mechanised underground mine with a current capacity of approximately 400 ktpa, a conventional 750 ktpa flotation concentrator and various infrastructure facilities. The mine produces gold-copper-silver and zinc concentrates sold to international markets. More than US$ 75 million has been invested in Kapan over the last 5 years.

The Kapan property is located in the south-eastern Armenia, 320 kilometres from the capital city of Yerevan. The area surrounding the operation hosts a number of other prospective deposits, including 100%-owned high-grade Lichkvaz gold deposit located approximately 70 km from Kapan.

Polymetal believes that the acquisition of Kapan is attractive as it provides the opportunity to:

  • Enable synergies with Lichkvaz deposit by employing processing hub approach utilising excess capacity at the Kapan concentrator.
  • Debottleneck underground mine and improve concentrator utilisation
  • Streamline the cost structure leveraging Polymetal's experience in mechanised narrow-vein underground mining in the FSU
  • Establish a strong operating platform to pursue further opportunities in Armenia

An improvement of the concentrator utilization is planned in 2 stages:

- 650 ktpa to be achieved by 2H 2017

- 900 ktpa to be achieved by 2H 2018 (including feed from Lichkvaz)

We are undertaking significant additional drilling in 2016 with the objective to produce a JORC-compliant ore reserve estimate and a combined Life-of_mine Plan for Kapan and Lichkvaz in Q3 2017.


* Mineral resources are calculated in addition to ore reserves1 Source: NI 43-101 Technical Report – Shahumyan Project, Kapan, Republic of Armenia and is dated 23 March 2015 which was prepared by Galen White, Competent Person, Director and Principal Consultant of CSA Global (UK) Ltd.
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