PJSC Polyus (LSE, MOEX – PLZL) (“Polyus” or the “Company”), the largest gold producer in Russia, announces that its subsidiary company LLC SL Gold (“SL Gold”) has started a 180,000 metre drilling campaign at its Sukhoi Log deposit, one of the world’s largest undeveloped gold deposits and the biggest gold greenfield project in Russia.
The campaign, which is scheduled to last two years, will provide the basis for Polyus to update the block model for the deposit and for both Ore Reserve and Measured and Indicated Mineral Resource estimates in accordance with the JORC Code.
- In early 2017, based on historical drilling results, AMC Consultants Pty Ltd (“AMC Consultants”) generated a 3D resource block model estimating Sukhoi Log’s Total Inferred Mineral Resources at 58 million ounces, grading 2.0 g/t. This block model has provided the basis for the design of the drilling programme and borehole locations.
- The 180,000 metre diamond drilling campaign includes 50,000 metres of verification drilling and 130,000 metres of in-fill, geotechnical, geometallurgical and hydrogeological drilling works.
- The drilling campaign has started at three drill rigs at the site. In February 2018, three additional rigs will come into operation to increase the drilling fleet to six drill rigs for the duration of the drilling works.
- AMC Consultants will oversee the drilling to ensure compliance with JORC Code requirements and will provide an updated Ore Reserve and Mineral Resource estimate.
- The verification drilling is scheduled for completion in July 2018. Its primary aim will be to reconfirm the results of historical drilling data, which is based on 324,000 metres of diamond drilling carried out between 1961 to 1999, and to verify the geological interpretation of the deposit.
- Following completion of the verification stage in July 2018, the resource block model will be updated with the new drilling results to determine estimates for Measured and Indicated Mineral Resources.
Sukhoi Log Deposit
Sukhoi Log, the largest undeveloped gold deposit in Russia, is located in the northern part of the Bodaybo administrative district, Irkutsk region in Eastern Siberia, close to Polyus’ Verninskoye mine.
In February 2017, LLC “SL Gold” (“SL Gold”), a joint venture between Polyus and Rostec Corporation’s subsidiary LLC “RT Business Development”, was granted a license for the development of the Sukhoi Log deposit. Currently, Polyus holds a 58,4% interest in SL Gold with the right to consolidate its interest in SL Gold to 100% by 2022.
The deposit was discovered in 1961 by the Bodaybo expedition and extensively explored by Soviet geologists in the 1970 to the 1990s. Between 1961 to 1999, an aggregate 324 km of drilling has been performed by various expedition programs.
Polyus (www.polyus.com) is the largest gold producer in Russia and one of the top 10 gold miners globally with the lowest cost position. Based on its 2016 Ore Reserves and Mineral Resources, Polyus ranks second by attributable gold reserves and third by attributable gold resources among the world’s largest gold mining companies.
Polyus group’s principal operations are located in the Krasnoyarsk, Irkutsk and Magadan regions of Russia and the Sakha Republic (Yakutia).
Victor Drozdov, Director Investor Relations
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Victoria Vasilyeva, Director Public Relations
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Forward looking statement
This announcement may contain «forward-looking statements» concerning Polyus and/or Polyus group. Generally, the words “will”, “may”, “should”, “could”, “would”, “can”, “continue”, “opportunity”, “believes”, “expects”, “intends”, “anticipates”, “estimates” or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.