Release time	IMMEDIATE                                LSE, MOEX: POLY / ADR: AUCOY
Date	27 February 2020

 

 

Polymetal International plc

Ore Reserves, Mineral Resources and Exploration update as at 1 January 2020

 

Polymetal International plc announces its Ore Reserves and Mineral Resources as at 1 January 2020 in accordance with the JORC Code (2012)[1]  and exploration update for the year ended 31 December 2019.

"Significant growth in Ore Reserves at Kyzyl and a two-fold increase in reserves at Veduga were the key drivers behind the Group's Ore Reserves extension", said Vitaly Nesis, Group CEO of Polymetal. "In 2020, we will focus on reserves and resources updates at some of our key development projects and will continue exploration activities to extend the life of existing mines".

2019 HIGHLIGHTS

• Group Ore Reserves increased by 5% year-on-year to 25.2 Moz of gold equivalent (GE) due to successful exploration results with the subsequent re-evaluation of Ore Reserves at Kyzyl, Veduga, Kutyn and initial estimate at Primorskoye (Dukat hub). GE Ore Reserves per share also grew by 5%.
• Mineral Resources (additional to Ore Reserves) declined by 4% year-on-year to 25.4 Moz of GE. The Lichkvaz disposal and conversion of Mineral Resources to Ore Reserves at Kyzyl, Primorskoye and Veduga were largely compensated by initial Mineral Resources estimate of Elevator (Varvara hub) and increase of resources at Albazino and Svetloye.
• The average grade in Ore Reserves remained largely unchanged over the previous year at 3.7 g/t of GE. It continues to be one of the highest within the sector globally. The average Mineral Resources grade also remained stable at 5.2 g/t of GE.
• In 2019, the Company maintained conservative price assumptions for both Ore Reserve and Mineral Resource estimates at US$ 1,200/oz for gold and US$ 15/oz for silver.
• Polymetal completed 198 km of exploration drilling in 2019. Drilling expenses amounted to US$ 18.1 million.

 

 

 

 

 

 

 

 

 

 

 

Ore Reserves and Mineral Resources summary (1), (2)

	1 January 2020	1 January 2019	Change, %
Ore Reserves (Proved + Probable), gold equivalent Moz	25.2	24.0	+5%
Gold, Moz	23.7	22.3	+6%
Silver, Moz	116.0	135.0	-14%
Average reserve grade, g/t	3.7	3.8	-2%
Ore Reserves per share, GE oz/per share	0.054	0.051	+5%
Mineral Resources (Measured + Indicated + Inferred), gold equivalent Moz	25.4	26.3	-4%
Gold, Moz	20.3	21.0	-3%
Silver, Moz	337.7	354.9	-5%
Average resources grade, g/t	5.2	5.1	+1%

1. Ore Reserves and Mineral Resources from continuing operations. Kapan mine was classified as a discontinued operation as at 01.01.2019 and is not included in this estimate; Lichkvaz, Oroch, Sopka Kvartsevaya, Dalneye and Irbychan mines were classified as discontinued operations as at 01.01.2020 and are not included in this estimate.
2. Mineral Resources are additional to Ore Reserves. Total Ore Reserves and Mineral Resources numbers include base metals (copper, zinc and lead). PGM Mineral Resources are presented separately and are not included in the calculation of the gold equivalent. Any discrepancies in calculations are due to rounding.

2020 OUTLOOK

In 2020, Polymetal will continue to invest in both near-mine and greenfield exploration projects in order to increase Ore Reserves.

The key objectives are as follows:

• Prepare initial Ore Reserve estimate for East Bakyrchik (Kyzyl)
• Prepare initial Ore Reserve estimate for Prognoz
• Complete Ore Reserve estimate update at Veduga
• Prepare initial Ore Reserve estimate for Voro refractory ore
• Prepare initial Mineral Resource estimate at Talgiy (Albazino)
• Upgrade Mineral Resources categories at Elevator.

The Company also plans to further develop its cooperation with junior exploration companies and enter into several new strategic partnerships. In 2020, the results of the first field season of the work of existing junior partners are expected.

 

 

 

 

 

 

Ore Reserves and Mineral Resources structure by metal as at 1 January 2020 (1)

	Ore Reserves	Mineral Resources
Gold	94%	80%
Silver	5%	17%
Base metals	1%	3%
Total	100%	100%

1. Ore Reserves and Mineral Resources from continuing operations. Lichkvaz, Oroch, Sopka Kvartsevaya, Dalneye and Irbychan mines were classified as discontinued operations as at 01.01.2020 and are not included in this estimate.

Ore Reserves reconciliation, GE Moz (1)

Ore Reserves, 01.01.2019	Metals to gold equivalent conversion price ratio change (1)	Depletion	Revaluation (2)	Change in ownership (3)	Initial Ore Reserve estimate	Ore Reserves, 01.01.2020
24.0	+0.1	-1.8	+2.5	-0.1	+0.5	25.2

1. For the gold equivalent conversion ratios and applicable processing technology, please refer to the Appendix.
2. Including the effect of the expected sale and stockpiles write-off of Sopka Kvartsevaya (-199 Koz) and Dalneye (-58 Koz) deposits.
3. Lichkvaz sale.

Ore Reserves and Mineral Resources as at 1 January 2020 (1)

	Tonnage	Grade	Content
	Mt	GE, g/t	GE, Moz
Ore Reserves
Proved	64.3	2.5	5.2
Probable	145.3	4.3	20.0
Proved + Probable	209.5	3.7	25.2
Mineral Resources
Measured	16.5	3.2	1.7
Indicated	44.8	5.0	7.1
Measured + Indicated	61.2	4.5	8.8
Inferred	91.7	5.6	16.5
Measured + Indicated + Inferred	152.9	5.2	25.4

1. Ore Reserves and Mineral Resources from continuing operations. Lichkvaz, Oroch, Sopka Kvartsevaya, Dalneye and Irbychan mines were classified as discontinued operations as at 01.01.2020 and are not included in this estimate. Mineral Resources and Ore Reserves are reported in accordance with the JORC Code (2012). Mineral Resources are additional to Ore Reserves. A detailed table of Mineral Resources and Ore Reserves on a by-mine basis are presented below. PGM Mineral Resources are presented separately and not included in the calculation of the gold equivalent. Any discrepancies in calculations are due to rounding.

 

 

Exploration areas and volumes (mine site exploration excluded) (1)  

	Drilling, km
	2019	2018
Brownfield
Kyzyl	5.3	7.3
Albazino	13.2	26.8
Mayskoye	-	29.5
Varvara hub	45.3	53.2
Voro hub	23.3	32.9
Omolon hub	11.8	21.3
Svetloye hub	2.8	5.9
Dukat hub	0.6	27.6
Okhotsk (sold December 2018)	-	15.9
Subtotal	102.4	220.6
Greenfield
Yakutia	43.1	85.7
Nezhda	1.8	25.9
Prognoz	41.4	59.8
Veduga	19.2	-
Kutyn	16.1	19.8
Viksha	11.9	14.7
Urals	3.9	9.3
Other	1.9	-
Subtotal	96.1	129.6
Total	198.5	350.2

1. Any discrepancies in calculations are due to rounding.

EXPLORATION RESULTS

In 2019, exploration was focused on areas in close proximity to the Company's existing assets. Exploration activities were carried out at 52 licensed properties. 13 new licenses were obtained for geological studies, exploration and production of gold, silver, PGMs and copper. In total, 198 km of drilling was completed.

Kyzyl

• The updated Ore Reserve and Mineral Resources estimate for Bakyrchik conducted in 2019 incorporates data from additional 239 diamond drill holes, 41.5 km of drilling, which resulted in the extension of mineralization zones within the existing ore bodies and update of the resource model. According to the updated estimate, open-pit reserves now equal to 3.9 Moz of gold with an average grade of 5.6 g/t. Underground reserves increased to 4.3 Moz with an average grade of 7.1 g/t. Additional Mineral Resources declined by 374 Koz to 3.5 Moz with an average grade of 5.4 g/t due to conversion to Ore Reserves. Life of open-pit increased from 10 years to 14 years.
• In 2019, Polymetal continued exploration drilling at Kyzyl's second ore zone, East Bakyrchik (Promezhutochniy and Glubokiy Log sections), to study the possibility of the open-pit expansion. 24 drill holes totaling 5.3 km of drilling were completed resulting in clarification of ore bodies' contours and the mineralization boundaries.
• In 2020, the Company plans to update Ore Reserve and Mineral Resource estimate to include the results of East Bakyrchik evaluation.

Albazino

• In 2019, exploration activities were focused on additional prospecting of the Mineral Resources at Ekaterina 2 mine. Additional Mineral Resources increased by 159 Koz to 1.8 Moz GE with an average grade of 4.6 g/t
• Exploration was carried out at the Talgiy section of the Urkachik area (47 thousand m3 of trenches, 4.7 km of drilling). In 2020, Polymetal plans to continue exploration drilling at Talgiy in order to prepare initial Mineral Resource estimate. Additional resources are expected to be established on the flanks of the deposit due to the identification of new ore bodies and evaluation of new prospective areas (Pikhtovy site).

Varvara hub

• At Elevator, 4.8 km of drilling was completed, aiming to explore primary gold ore for open-pit mining. Based on exploration activity in 2019 and previous years, an initial Mineral Resource estimate was prepared. Resources amounted to 402 Koz of gold with an average grade of 1.8 g/t. Inclusion of Elevator's resources offset the decrease in resources at Varvara and Komar attributable to changes in the boundaries of the Mineral Resources. Total hub's additional Mineral Resources decreased by 150 Koz to 1.5 Moz of GE. 
• At Vostochno-Tarutinsky gold-copper deposit, 28.3 km were drilled, including 21.7 km of exploration drilling, in order to prepare an initial Mineral Resource estimate.
• In 2020, the Company plans to continue exploration on the flanks of the Elevator deposit aiming to upgrade the categories of Mineral Resources and convert them into Ore Reserves.

Voro hub

• Additional Mineral Resources of Voro hub remained mostly unchanged over the previous year at 1.3 Moz of GE with an average grade of 4.9 g/t.
• At Voro, a total of 10.5 km of exploration drilling was completed in 2019 to estimate underground mineral resources on the northern flank and to estimate mineral resources of the oxidized ores for open-pit mining on the western flank.
• At Pescherny, 12.4 km was drilled. Technological studies and a set of field and laboratory hydrogeological and engineering-geological studies were completed.
• In 2020, Polymetal plans to prepare an initial Ore Reserve and the updated Mineral Resource estimate of Pescherny deposit, as well as to complete exploration of the underground resources at Voro deposit and to continue exploration in its surrounding area.

Omolon hub

• 5.6 km of exploration drilling was completed at the Nevenrekan deposit to close the ore bodies along the strike at zone 1 and assess their extension. Mineral Resources increased by 78 Koz to 242 Koz of GE with an average grade of 19.3 g/t.

Svetloye hub

• In 2019, exploration was carried out on the remote flanks of Svetloye deposit. An increase in additional Mineral Resources of 109 Koz at Emmy and Lyudmila ore zones was obtained due to an improvement in the quality of the ore and wider ore bodies.
• In 2020, the Company plans to continue exploration drilling and trenching on the flanks of Emmy and Lyudmila ore zones aiming to further increase mineral resources base.

Dukat hub

• According to the initial estimate, Ore Reserves of Primorskoye deposit amounted to 12.2 Moz silver equivalent with an average grade of 3,113 g/t at a cut-off grade of 1,115 g/t of silver equivalent (for processing at Lunnoye plant). Additional Mineral Resources as a result of the conversion decreased by 20.3 Moz in silver equivalent.

Nezhda

• In 2019, exploration activities were focused on the southern flanks of the Nezhda deposit. According to the preliminary estimates, an increase in the open-pit Mineral Resources is possible.
• In 2020, Polymetal plans to continue exploration activities on the flanks of the deposit to identify new mineralized zones and update the mineralization estimates of the known ore bodies.

Prognoz

• In 2019, the Company conducted 41.4 km of drilling, including 31.1 km of exploration drilling, 5.3 km of geotechnical drilling for plant construction, 2.5 km of hydrogeological drilling and 2.4 km of technological drilling.
• In 2020, Polymetal plans to prepare an initial Ore Reserve and an updated Mineral Resource estimates of Prognoz deposit as well as to carry additional exploration activity out on the flanks and surrounding areas of the deposit.

Veduga

• In 2019, the Company prepared an updated Mineral Resource and Ore Reserve estimate based on exploration activities conducted in 2017-2018. As at 01.01.2020, the deposit's Ore Reserves[2] totaled 2.7 Moz of gold with an average grade of 4.5 g/t, which is 1.4 Moz more than in the previous evaluation. Additional Mineral Resources halved to 200 Koz due to conversion to Ore Reserves.
• In 2019, the Company carried out 19.2 km of exploration drilling at the deeper levels of the known ore bodies.
• In 2020, Polymetal plans to evaluate the potential ore body 1 to a horizon of -650 m and also continue to identify new resources at the Strelka ore zone. The Company expects to achieve an increase of at least 1 Moz of gold in Mineral Resources as a result of this exploration campaign.

Kutyn

• In 2019, 16.1 km of exploration drilling and 56.9 thousand m3 of trenches were completed at Kutyn. Based on the results of drilling conducted in 2017-2019, an updated geological model and Mineral Resource and Ore Reserve estimate were prepared.
• Ore Reserves increased by 425 Koz compared to the previous estimate and amounted to 812 Koz of gold with an average grade of 3.0 g/t. Mineral Resources totaled 785 Koz with an average grade of 3.7 g/t.
• In 2020, additional exploration and evaluation work will be carried out on the flanks of the explored ore zones to verify new promising areas. Detailed drilling will be performed in the main ore zones within the expected open-pit oxidized boundaries to convert Mineral Resources into Ore Reserves.

PGMs

• Exploration drilling was carried out at Kenti and Shargi ore zones at the Viksha PGM deposit in Karelia aiming to upgrade the Mineral Resources categories. The resource model of the Viksha deposit was updated, reflecting changing metal prices as well. As a result, total Mineral Resources decreased to 5.7 Moz of PdEq, while the share of Measured and Indicated Resources increased from 13% to 65%.
• In 2020, exploration activities are set to continue at the flanks of the Kenti and Shargi ore zones with a view to upgrade the resources of the deposit.

 

Ore Reserves as at 1 January 2020 (1)

		Tonnage			Grade							Content
		Kt	Au, g/t	Ag g/t	Cu %	Zn %	Pb %	GE        g/t	Au Koz		Ag Koz		Cu Kt	Zn Kt	Pb Kt	GE Koz
	Proved
	Standalone mines	6,510						4.4	924		-		-	-	-	924
	Albazino	4,430	3.5	-	-	-	-	3.5	492		-		-	-	-	492
	Mayskoye	1,220	7.1	-	-	-	-	7.1	282		-		-	-	-	282
	Kyzyl project (Bakyrchik) (2)	860	5.4	-	-	-	-	5.4	150		-		-	-	-	150
	Dukat hub	6,020						3.7	113		50,989		-	0.5	0.5	725
	Dukat	4,680	0.5	261	-	-	-	3.6	69		39,247		-	-	-	542
	Lunnoye	1,070	1.1	271	-	-	-	4.3	39		9,350		-	-	-	148
	Goltsovoye	60	-	355	-	-	-	4.4	-		671		-	-	-	8
	Arylakh	180	0.7	260	-	-	-	3.9	4		1,462		-	-	-	22
	Perevalnoye	30	-	247	-	1.62	1.43	3.9	0		259		-	0.5	0.5	4
	Varvara hub	18,090						1.0	545		-		8.6	-	-	600
	Varvara (3)	13,700	0.8	-	0.46	-	-	0.9	363		-		8.6	-	-	417
	Komar	4,390	1.3	-	-	-	-	1.3	183		-		-	-	-	183
	Omolon hub	4,660						3.0	436		1,166		-	-	-	449
	Birkachan	3,610	2.2	7	-	-	-	2.3	260		862		-	-	-	269
	Olcha	240	7.2	21	-	-	-	7.4	53		152		-	-	-	54
	Tsokol Kubaka	370	5.0	7	-	-	-	5.0	59		83		-	-	-	59
	Yolochka (4)	440	4.6	5	-	-	-	4.7	65		68		-	-	-	66
	Voro hub	13,600						1.7	724		849		-	-	-	730
	Voro	8,790	1.5	3	-	-	-	1.5	429		849		-	-	-	436
	Maminskoye (5)	4,810	1.9	-	-	-	-	1.9	295		-		-	-	-	295
	Svetloye hub	1,290						2.7	110		-		-	-	-	110
	Svetloye	1,290	2.7	-	-	-	-	2.7	110		-		-	-	-	110
	Development and exploration projects	14,080						3.8	1,626		7,603		-	-	-	1,706
	Nezhda (6)	11,730	3.6	20	-	-	-	3.9	1,372		7,603		-	-	-	1,452
	Veduga (7)	490	2.7	-	-	-	-	2.7	42		-		-	-	-	42
	Kutyn (8)	1,860	3.5	-	-	-	-	3.5	211		-		-	-	-	211
	Total Proved	64,250						2.5	4,478		60,607		8.6	0.5	0.5	5,243
	Probable
	Standalone mines	58,420						6.0	11,254		-		-	-	-	11,254
	Albazino	11,080	4.1	-	-	-	-	4.1	1,446		-		-	-	-	1,446
	Mayskoye	7,640	7.0	-	-	-	-	7.0	1,716		-		-	-	-	1,716
	Kyzyl project (Bakyrchik) (2)	39,700	6.3	-	-	-	-	6.3	8,092		-		-	-	-	8,092
	Dukat hub	4,310						4.6	126		42,460		-	12.9	9.7	641
	Dukat	2,710	0.5	252	-	-	-	3.5	43		21,961		-	-	-	307
	Lunnoye	770	1.9	227	-	-	-	4.7	47		5,591		-	-	-	115
	Arylakh	130	0.8	327	-	-	-	4.9	4		1,389		-	-	-	21
Perevalnoye		580	-	258	-	2.24	1.69	4.3	-		4,764		-	12.9	9.7	79
Primorskoye (9)		120	8.3	2,227	-	-	-	30.2	33		8,754		-	-	-	119

 

		Tonnage		Grade												Content
		Kt		Au, g/t		Ag g/t		Cu %		Zn %		Pb %		GE        g/t		Au Koz			Ag Koz			Cu Kt		Zn Kt		Pb Kt		GE Koz
Varvara hub		20,600												1.6		1,033			-			9.1		-		-		1,090
Varvara (3)		4,390		1.1		-		0.59		-		-		1.5		161			-			9.1		-		-		218
Komar		16,210		1.7		-		-		-		-		1.7		872			-			-		-		-		872
Omolon hub		1,150												7.9		283			933			-		-		-		293
Birkachan		700		7.4		23		-		-		-		7.6		166			518			-		-		-		171
Olcha		60		6.7		19		-		-		-		6.9		14			41			-		-		-		15
Tsokol Kubaka		90		5.9		9		-		-		-		6.0		18			28			-		-		-		18
Burgali		300		9.1		37		-		-		-		9.5		86			347			-		-		-		89
Voro hub		10,210												2.4		688			1,056			18.9		18.1		-		797
North Kaluga (10)		320		6.7		101		5.81		5.58		-		17.1		70			1,056			18.9		18.1		-		179
Maminskoye (5)		9,890		1.9		-		-		-		-		1.9		618			-			-		-		-		618
Svetloye hub		4,320												2.7		376			-			-		-		-		376
Svetloye		4,320		2.7		-		-		-		-		2.7		376			-			-		-		-		376
Development and exploration projects		46,240												3.7		5,434			10,981			-		-		-		5,549
Nezhda (6)		26,290		3.4		13		-		-		-		3.5		2,844			10,981			-		-		-		2,960
Veduga (7)		13,410		4.6		-		-		-		-		4.6		1,989			-			-		-		-		1,989
Kutyn (8)		6,540		2.9		-		-		-		-		2.9		601			-			-		-		-		601
Total Probable		145,250												4.3		19,194			55,431			28.0		31.0		9.7		20,000
Proved +  Probable
Standalone mines		64,930												5.8		12,178			-			-		-		-		12,178
Albazino		15,510		3.9		-		-		-		-		3.9		1,938			-			-		-		-		1,938
Mayskoye		8,860		7.0		-		-		-		-		7.0		1,998			-			-		-		-		1,998
Kyzyl project (Bakyrchik) (2)		40,560		6.3		-		-		-		-		6.3		8,242			-			-		-		-		8,242
Dukat hub		10,330												4.1		239			93,449			-		13.4		10.2		1,366
Dukat		7,390		0.5		258		-		-		-		3.6		112			61,209			-		-		-		849
Lunnoye		1,840		1.5		253		-		-		-		4.5		87			14,941			-		-		-		264
Goltsovoye		60		-		355		-		-		-		4.4		-			671			-		-		-		8
Arylakh		310		0.7		289		-		-		-		4.4		7			2,852			-		-		-		43
Perevalnoye		610		-		257		-		2.21		1.68		4.2		-			5,023			-		13.4		10.2		83
Primorskoye (9)		120		8.3		2,227		-		-		-		30.2		33			8,754			-		-		-		119
Varvara hub		38,690												1.4		1,578			-			17.7		-		-		1,690
Varvara (3)		18,090		0.9		-		0.52		-		-		1.1		523			-			17.7		-		-		635
Komar		20,600		1.6		-		-		-		-		1.6		1,055			-			-		-		-		1,055
Omolon hub		5,810												4.0		720			2,100			-		-		-		741
Birkachan		4,310		3.1		10		-		-		-		3.2		426			1,380			-		-		-		440
Olcha		300		7.1		20		-		-		-		7.3		67			193			-		-		-		69
Tsokol Kubaka		460		5.1		7		-		-		-		5.2		76			111			-		-		-		77
Burgali		300		9.1		37		-		-		-		9.5		86			347			-		-		-		89
Yolochka (4)		440		4.6		5		-		-		-		4.7		65			68			-		-		-		66
Voro hub		23,810												2.0		1,412			1,904			18.9		18.1		-		1,527
Voro		8,790		1.5		3		-		-		-		1.5		429			849			-		-		-		436
North Kaluga (10)		320		6.7		101		5.81		5.58		-		17.1		70			1,056			18.9		18.1		-		179
Maminskoye (5)		14,700		1.9		-		-		-		-		1.9		913			-			-		-		-		913
	Tonnage						Grade													Content
	Kt		Au, g/t		Ag g/t		Cu %		Zn %		Pb %		GE        g/t		Au Koz			Ag Koz			Cu Kt		Zn Kt		Pb Kt		GE Koz
Svetloye hub	5,610		2.7										2.7		486			-			-		-		-		486
Svetloye	5,610		2.7		-		-		-		-		2.7		486						-		-		-		486
Development and exploration projects	60,320												3.7		7,059			18,585			-		-		-		7,255
Nezhda (6)	38,020		3.4		15		-		-		-		3.6		4,216			18,585			-		-		-		4,412
Veduga (7)	13,900		4.5		-		-		-		-		4.5		2,032			-			-		-		-		2,032
Kutyn (8)	8,400		3.0		-		-		-		-		3.0		812			-			-		-		-		812
Total Proved +  Probable	209,500												3.7		23,672			116,038			36.6		31.6		10.2		25,243

1. Ore Reserves are reported in accordance with the JORC Code (2012). Lichkvaz, Oroch, Sopka Kvartsevaya, Dalneye and Irbychan mines were classified as discontinued operations as at 01.01.2020 and are not included in this estimate. Any discrepancies in calculations are due to rounding.
2. Previous estimate prepared by Polymetal as at 01.07.2019. Price: Au = US$1,200/oz. Revised estimate prepared by Polymetal as at 01.01.2020 (accounts only for depletion).
3. Cu grade in Ore Reserves only represents average grade in flotation feed. Ore Reserves for flotation: 1.9 Mt Proved and 1.6 Mt Probable.
4. Stockpiled Ore Reserves. Price: Au = US$1,400/oz and Ag = US$17/oz.
5. Estimate prepared by Polymetal as at 01.01.2014. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
6. Estimate prepared by CSA as at 01.04.2018. Price: Au = US$1,200/oz and Ag = US$16/oz. Revised estimate was not performed due to lack of material changes.
7. Previous estimate prepared by Polymetal as at 01.03.2019. Revised estimate was prepared by Polymetal as at 01.01.2020 (accounts only for depletion).Ore Reserves are presented in accordance with the Company's ownership equal to 74.3%.
8. Estimate prepared by Polymetal as at 01.10.2019. Price: Au = US$1,300/oz. Revised estimate as at 01.01.2020 was not performed due to lack of material changes.
9. Initial estimate prepared by Polymetal as at 01.01.2020. Price: Au = US$1,400/oz, Ag = US$16/oz.
10. Initial estimate prepared by Polymetal as at 01.07.2014. Price: Au = US$1,300/oz, Ag = US$20/oz, Cu = US$7,000/t and Zn = US$1,700/t. Revised estimate was not performed due to lack of material changes.

 

Mineral Resources as at 1 January 2020 (1)

 

	Tonnage		Grade								Content
	Kt	Au g/t		Ag g/t	Cu %	Zn %	Pb %	GE              g/t	Au Koz			Ag Koz	Cu Kt	Zn Kt	Pb Kt	GE Koz
Measured
Standalone mines	4,620							5.3	792			-	-	-	-	792
Albazino	3,440	2.7		-	-	-	-	2.7	296			-	-	-	-	296
Mayskoye (2)	1,180	13.0		-	-	-	-	13.0	496			-	-	-	-	496
Dukat hub	1,360							7.1	53			21,149	-	-	-	309
Dukat	670	0.9		443	-	-	-	6.2	19			9,505	-	-	-	133
Lunnoye	530	1.8		422	-	-	-	6.9	31			7,126	-	-	-	116
Goltsovoye	80	-		1,018	-	-		12.7	-			2,625	-	-		33
Arylakh	80	1.4		717	-	-	-	10.4	4			1,893	-	-	-	27
Varvara hub	6,660							1.5	172			-	22.4	-	-	314
Varvara (3)	6,520	0.8		-	0.39	-	-	1.5	163			-	22.4	-	-	305
Komar	140	2.0		-	-	-	-	2.0	9			-	-	-	-	9
Omolon hub	680							3.5	75			183	-	-	-	77
Birkachan	410	1.4		5	-	-	-	1.5	19			71	-	-	-	19
Olcha	160	4.9		15	-	-	-	5.0	25			77	-	-	-	25
Tsokol Kubaka	110	9.6		10	-	-	-	9.7	31			34	-	-	-	32
Voro hub	1,230							1.6	65			45	-	-	-	65
Voro	250	2.6		6	-	-	-	2.6	20			45	-	-	-	21
Maminskoye (4)	980	1.4		-	-	-	-	1.4	44			-	-	-	-	44
Svetloye hub	740							1.0	23			-	-	-	-	23
Svetloye	740	1.0		-	-	-	-	1.0	23			-	-	-	-	23
Development and exploration projects	1,160							3.1	115			61	-	-	-	115
Nezhda (5)	220	4.0		9	-	-	-	4.1	28			61	-	-	-	29
Veduga (6)	380	0.7		-	-	-	-	0.7	9			-	-	-	-	9
Kutyn (7)	560	4.3		-	-	-	-	4.3	77			-	-	-	-	77
Total Measured	16,450							3.2	1,295			21,438	22.4	-	-	1,696

 

	Tonnage		Grade							Content
	Kt	Au g/t			Ag g/t	Cu %	Zn %	Pb %	GE              g/t	Au Koz		Ag Koz		Cu Kt		Zn Kt		Pb Kt		GE Koz
Indicated
Standalone mines	8,400								5.4	1,466		-		-		-		-		1,466
Albazino	3,910	4.6			-	-	-	-	4.6	581		-		-		-		-		581
Mayskoye (2)	1,190	10.0			-	-	-	-	10.0	382		-		-		-		-		382
Kyzyl (Bakyrchik, Bolshevik) (8)	3,300	4.7			-	-	-	-	4.7	503		-		-		-		-		503
Dukat hub	780								6.9	27		11,850		-		1.9		1.4		172
Dukat	430	0.9			457	-	-	-	6.4	13		6,372		-		-		-		90
Lunnoye	140	2.3			270	-	-	-	5.6	10		1,200		-		-		-		25
Goltsovoye	90	-			796	-	-		9.9	-		2,331		-		-		-		29
Arylakh	50	1.2			519	-	-	-	7.7	2		820		-		-		-		12
Perevalnoye	50	-			446	-	3.98	2.94	7.4	-		682		-		1.9		1.4		11
Primorskoye  (9)	20	3.8			879	-	-	-	10.0	2		445		-		-		-		5
Varvara hub	13,090								1.9	759		-		5.2		-		-		792
Varvara (3)	2,960	1.4			-	0.49	-	-	1.7	130		-		5.2		-		-		163
Komar	5,770	2.0			-	-	-	-	2.0	372		-		-		-		-		372
Elevator (10)	4,360	1.8			-	-	-	-	1.8	257		-		-		-		-		257
Omolon hub	560								17.1	226		7,255		-		-		-		308
Birkachan	160	14.7			23	-	-	-	14.9	74		113		-		-		-		75
Olcha	50	9.2			28	-	-	-	9.5	15		45		-		-		-		15
Tsokol Kubaka	10	6.1			11	-	-	-	6.2	2		4		-		-		-		2
Burgali	50	8.4			19	-	-	-	8.6	14		32		-		-		-		15
Nevenrekan	290	13.2			770	-	-	-	21.9	121		7,061		-		-		-		201
Voro hub	6,150								5.5	775		2,523		26.8		42.6		-			1,082
Voro	50	2.7			4	-	-	-	2.7	5		6		-		-		-			5
Tamunier (11)	2,190	3.4			10	-	-	-	3.5	242		690		-		-		-			245
Maminskoye (4)	1,150	1.5			-	-	-	-	1.5	55		-		-		-		-			55
Saum (12)	1,260	2.4			45	2.14	3.39	-	9.9	96		1,827		26.8		42.6		-			399
Pescherny (13)	1,500	7.8			-	-	-	-	7.8	378		-		-		-		-			378
Svetloye hub	4,450								3.4	492		-		-		-		-			492
Svetloye	2,270	2.8			-	-	-	-	2.8	201		-		-		-		-			201
Levoberezhny (14)	2,180	4.1			-	-	-	-	4.1	291		-		-		-		-			291
Development and exploration projects	11,360								7.7	727		146,134		-		-		119.8			2,823
Nezhda (5)	2,770	3.7			16	-	-	-	3.9	331		1,423		-		-		-			346
Kutyn (7)	3,020	4.1			-	-	-	-	4.1	396		-		-		-		-			396
Prognoz (15)	5,570	-			808	-	-	2.15	11.6	-		144,710		-		-		119.8			2,081
Total Indicated	44,790								5.0	4,472		167,762		32.0		44.5		121.2			7,134

 

	Tonnage		Grade									Content
	Kt	Au g/t		Ag g/t		Cu %		Zn %	Pb %	GE       g/t	Au Koz		Ag Koz	Cu Kt	Zn Kt	Pb Kt	GE Koz
Measured + Indicated
Standalone mines	13,020									5.4	2,258		-	-	-	-	2,258
Albazino	7,350	3.7		-		-		-	-	3.7	877		-	-	-	-	877
Mayskoye (2)	2,370	11.5		-		-		-	-	11.5	879		-	-	-	-	879
Kyzyl (Bakyrchik, Bolshevik) (8)	3,300	4.7		-		-		-	-	4.7	503		-	-	-	-	503
Dukat hub	2,140									7.0	80		32,999	-	1.9	1.4	481
Dukat	1,100	0.9		448		-		-	-	6.3	32		15,876	-	-	-	223
Lunnoye	670	1.9		391		-		-	-	6.6	41		8,326	-	-	-	141
Goltsovoye	170	-		900		-		-	-	11.2	-		4,956	-	-	-	62
Arylakh	130	1.3		643		-		-	-	9.4	6		2,713	-	-	-	40
Perevalnoye	50	-		446		-		3.98	2.94	7.4	-		682	-	1.9	1.4	11
Primorskoye (9)	20	3.8		879		-		-	-	10.0	2		445	-	-	-	5
Varvara hub	19,750									1.7	932		-	27.6	-	-	1,106
Varvara (3)	9,480	1.0		-		0.40		-	-	1.5	293		-	27.6	-	-	467
Komar	5,910	2.0		-		-		-	-	2.0	381		-	-	-	-	381
Elevator (10)	4,360	1.8		-		-		-	-	1.8	257		-	-	-	-	257
Omolon hub	1,240									9.6	301		7,438	-	-	-	384
Birkachan	570	5.1		10		-		-	-	5.2	92		185	-	-	-	94
Olcha	210	5.9		18		-		-	-	6.1	40		122	-	-	-	41
Tsokol Kubaka	120	9.2		10		-		-	-	9.3	34		38	-	-	-	34
Burgali	50	8.4		19		-		-	-	8.6	14		32	-	-	-	15
Nevenrekan	290	13.2		770		-		-	-	21.9	121		7,061	-	-	-	201
Voro hub	7,380									4.8	840		2,569	26.8	42.6	-	1,147
Voro	300	2.6		5		-		-	-	2.6	25		52	-	-	-	25
Tamunier (11)	2,190	3.4		10		-		-	-	3.5	242		690	-	-	-	245
Maminskoye (4)	2,130	1.4		-		-		-	-	1.4	99		-	-	-	-	99
Saum (12)	1,260	2.4		45		2.14		3.39	-	9.9	96		1,827	26.8	42.6	-	399
Pescherny (13)	1,500	7.8		-		-		-	-	7.8	378		-	-	-	-	378
Svetloye hub	5,190									3.1	515		-	-	-	-	515
Svetloye	3,010	2.3		-		-		-	-	2.3	224		-	-	-	-	224
Levoberezhny (14)	2,180	4.1		-		-		-	-	4.1	291		-	-	-	-	291
Development and exploration projects	12,520									7.3	842		146,195	-	-	119.8	2,938
Nezhda (5)	2,990	3.7		15		-		-	-	3.9	359		1,484	-	-	-	375
Veduga (6)	380	0.7		-		-		-	-	0.7	9		-	-	-	-	9
Kutyn (7)	3,580	4.1		-		-		-	-	4.1	473		-	-	-	-	473
Prognoz (15)	5,570	-		808		-		-	2.15	11.6	-		144,710	-	-	119.8	2,081
Total Measured + Indicated	61,240									4.5	5,768		189,200	54.5	44.5	121.2	8,830

 

	Tonnage	Grade								Content
	Kt	Au g/t	Ag g/t	Cu %		Zn %	Pb %	GE g/t	Au Koz			Ag Koz	Cu Kt		Zn Kt		Pb Kt	GE Koz
Inferred
Standalone mines	26,570							6.8	5,772			-	-		-		-	5,772
Albazino	4,710	6.1	-	-		-	-	6.1	922			-	-		-		-	922
Mayskoye (2)	5,180	11.3	-	-		-	-	11.3	1,884			-	-		-		-	1,884
Kyzyl (Bakyrchik, Bolshevik) (8)	16,680	5.5	-	-		-	-	5.5	2,967			-	-		-		-	2,967
Dukat hub	2,640							7.0	68			41,662	-		14.7		14.2	595
Dukat	1,520	0.8	487	-		-	-	6.7	39			23,762	-		-		-	326
Lunnoye	320	1.8	409	-		-	-	6.8	18			4,064	-		-		-	68
Goltsovoye	120	-	703	-		-	-	8.8	-			2,689	-		-		-	34
Arylakh	180	0.3	473	-		-	-	6.2	2			2,703	-		-		-	36
Perevalnoye	460	-	418	-		3.17	3.07	6.8	-			6,225	-		14.7		14.2	102
Primorskoye (9)	40	7.0	1,713	-		-	-	24.3	9			2,221	-		-		-	31
Varvara hub	5,770							1.9	342			-	2.8		-		-	359
Varvara (3)	1,560	1.7	-	0.61		-	-	2.0	86			-	2.8		-		-	103
Komar	1,450	2.4	-	-		-	-	2.4	111			-	-		-		-	111
Elevator (10)	2,760	1.6	-	-		-	-	1.6	145			-	-		-		-	145
Omolon hub	340							13.3	132			1,199	-		-		-	145
Olcha	60	10.3	41	-		-	-	10.7	19			75	-		-		-	20
Tsokol Kubaka	30	9.2	15	-		-	-	9.3	10			16	-		-		-	10
Burgali	150	15.5	23	-		-	-	15.8	74			110	-		-		-	75
Nevenrekan	100	8.9	299	-		-	-	12.3	30			998	-		-		-	41
Voro hub	1,030							5.4	177			88	-		-		-	178
Tamunier (11)	480	3.2	4	-		-	-	3.3	50			69	-		-		-	50
Saum (12)	10	1.9	45	-		-	-	2.3	1			20	-		-		-	1
Pescherny (13)	540	7.3	-	-		-	-	7.3	127			-	-		-		-	127
Svetloye hub	330							2.1	22			-	-		-		-	22
Svetloye	290	2.0	-	-		-	-	2.0	19			-	-		-		-	19
Levoberezhny (14)	40	2.3	-	-		-	-	2.3	3			-	-		-		-	3
Development and exploration projects	54,980							5.4	8,003			105,502	-		-		77.9	9,474
Nezhda (5)	46,440	5.1	9	-		-	-	5.2	7,552			13,679	-		-		-	7,696
Veduga (6)	980	4.4	-	-		-	-	4.4	139			-	-		-		-	139
Kutyn (7)	3,060	3.2	-	-		-	-	3.2	312			-	-		-		-	312
Prognoz (15)	4,500	-	635	-		-	1.73	9.2	-			91,822	-		-		77.9	1,327
Total Inferred	91,660							5.6	14,517			148,451	2.8		14.7		92.2	16,546

 

	Tonnage			Grade								Content
	Kt	Au g/t	Ag g/t		Cu %	Zn %	Pb %		GE       g/t		Au Koz		Ag Koz	Cu Kt	Zn Kt	Pb Kt	GE Koz
Measured + Indicated + Inferred
Standalone mines	39,590								6.3		8,030		-	-	-	-	8,030
Albazino	12,060	4.6	-		-	-	-		4.6		1,798		-	-	-	-	1,798
Mayskoye (2)	7,550	11.4	-		-	-	-		11.4		2,763		-	-	-	-	2,763
Kyzyl (Bakyrchik, Bolshevik) (8)	19,980	5.4	-		-	-	-		5.4		3,470		-	-	-	-	3,470
Dukat hub	4,780								7.0		149		74,661	-	16.6	15.6	1,077
Dukat	2,620	0.8	471		-	-	-		6.5		71		39,638	-	-	-	548
Lunnoye	990	1.9	396		-	-	-		6.7		59		12,390	-	-	-	208
Goltsovoye	290	-	819		-	-	-		10.2		-		7,645	-	-	-	96
Arylakh	310	0.8	545		-	-	-		7.6		8		5,415	-	-	-	75
Perevalnoye	510	-	420		-	3.25	3.06		6.9		-		6,907	-	16.6	15.6	113
Primorskoye (9)	60	6.1	1,478		-	-	-		20.3		11		2,666	-	-	-	37
Varvara hub	25,520								1.8		1,274		-	30.4	-	-	1,465
Varvara (3)	11,040	1.1	-		0.42	-	-		1.6		379		-	30.4	-	-	570
Komar	7,360	2.1	-		-	-	-		2.1		493		-	-	-	-	493
Elevator (10)	7,120	1.8	-		-	-	-		1.8		402		-	-	-	-	402
Omolon hub	1,580								10.4		433		8,637	-	-	-	529
Birkachan	570	5.1	10		-	-	-		5.2		92		185	-	-	-	94
Olcha	270	6.9	23		-	-	-		7.1		58		197	-	-	-	60
Tsokol Kubaka	150	9.2	11		-	-	-		9.3		43		54	-	-	-	44
Burgali	200	13.7	22		-	-	-		13.9		88		142	-	-	-	89
Nevenrekan	390	12.1	644		-	-	-		19.3		151		8,059	-	-	-	242
Voro hub	8,410								4.9		1,017		2,657	26.8	42.6	-	1,325
Voro	300	2.6	5		-	-	-		2.6		25		52	-	-	-	25
Tamunier (11)	2,670	3.4	9		-	-	-		3.4		292		759	-	-	-	296
Maminskoye (4)	2,130	1.4	-		-	-	-		1.4		99		-	-	-	-	99
Saum (12)	1,270	2.4	45		2.11	3.36	-		9.8		97		1,846	26.8	42.6	-	400
Pescherny (13)	2,040	7.7	-		-	-	-		7.7		505		-	-	-	-	505
Svetloye hub	5,520								3.0		537		-	-	-	-	537
Svetloye	3,300	2.3	-		-	-	-		2.3		243		-	-	-	-	243
Levoberezhny (14)	2,220	4.1	-		-	-	-		4.1		294		-	-	-	-	294
Development and exploration projects	67,500								5.7		8,845		251,697	-	-	197.8	12,412
Nezhda (5)	49,430	5.0	10		-	-	-		5.1		7,911		15,164	-	-	-	8,071
Veduga (6)	1,360	3.4	-		-	-	-		3.4		149		-	-	-	-	149
Kutyn (7)	6,640	3.7	-		-	-	-		3.7		785		-	-	-	-	785
Prognoz (15)	10,070	-	731		-	-	1.96		10.5		-		236,533	-	-	197.8	3,408
Total Measured + Indicated + Inferred	152,900								5.2		20,285		337,651	57.2	59.2	213.4	25,376

1. Мineral Resources are reported in accordance with the JORC Code (2012) and are additional to Ore Reserves. Lichkvaz, Oroch, Sopka Kvartsevaya, Dalneye and Irbychan as of 01.01.2020 are classified as discontinued operations and excluded from the estimate. Any discrepancies in calculations are due to rounding.
2. Previous estimate prepared by Polymetal as at 01.01.2019. Revised estimate prepared by Polymetal as at 01.01.2020 (accounts only for depletion).
3. Cu grade estimate is presented for rock and powder ore with high Cu grade only (total Mineral Resources of rock and powder ore with high Cu grade are 5.1 and 5.9 Mt of ore respectively).
4. Estimate prepared by Polymetal as at 01.01.2014. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
5. Estimate prepared by CSA as at 01.04.2018. Price: Au= US$1,200/oz, Ag = US$16/oz. Revised estimate was not performed due to lack of material changes.
6. Previous estimate prepared by Polymetal as at 01.03.2019. Revised estimate prepared by Polymetal as at 01.01.2020 (accounts only for depletion). Mineral Resources are presented in accordance with Company's ownership equal to 74.3%.                           
7. Previous estimate prepared by Polymetal as at 01.10.2019. Price: Au = US$1,300/oz. Revised estimate was not performed due to lack of material changes.
8. Previous estimate of Zone 1 was prepared by Polymetal as at 01.07.2019. Revised estimate prepared by Polymetal as at 01.01.2020 (accounts only for depletion). Previous estimate of Zone 2 (East Bakyrchik) prepared by RPA Inc. as at 01.01.2015. Estimate of Bolshevik section was prepared by Polymetal as at 01.01.2019, revised estimate was not performed due to lack of material changes.
9. Revised estimate prepared by Polymetal as at 01.01.2020. Price: Au= US$1,400/oz, Ag = US$16/oz.
10. Initial estimate prepared by Polymetal as at 01.01.2020.
11. Estimate prepared by Polymetal as at 01.01.2018. Price: Au = US$1,200/oz, Ag = US$16/oz. Revised estimate was not performed due to lack of material changes.
12. Initial estimate prepared by Polymetal as at 01.01.2017. Au = US$1,200/oz, Ag = US$16/oz, Cu = US$4,500/t and Zn = US$1,900/t. Revised estimate was not performed due to lack of material changes.
13. Estimate prepared by Polymetal as at 01.01.2019. Revised estimate was not performed due to lack of material changes. 
14. Estimate prepared by Polymetal as at 01.01.2019. Revised estimate was not performed due to lack of material changes. 
15. Estimate prepared by SRK Consulting (Russia) Limited as at 01.08.2018. Price: Ag = US$16/oz, Pb = US$2,200/t. Revised estimate was not performed due to lack of material changes. Recalculation into gold equivalent was made by Polymetal based on Au= US$1,200/oz, Ag = US$15/oz.                           

 

 

 

PGM Mineral Resources as at 1 January 2020 (1)

	Tonnage	Grade					Content
	Mt	Pd, g/t	Pt, g/t	Au, g/t	Cu, %	PdEq(2), g/t	Pd, Moz	Pt, Moz	Au, Moz	Cu, Kt	PdEq, Moz
Measured
Viksha project	6.9	0.8	0.3	0.1	0.09	1.1	0.2	0.1	0.03	6.5	0.2
Total Measured	6.9	0.8	0.3	0.1	0.09	1.1	0.2	0.1	0.03	6.5	0.2
Indicated
Viksha project	100.5	0.7	0.3	0.1	0.10	1.1	2.4	0.8	0.5	96.2	3.5
Total Indicated	100.5	0.7	0.3	0.1	0.10	1.1	2.4	0.8	0.5	96.2	3.5
Measured + Indicated
Viksha project	107.4	0.7	0.3	0.1	0.10	1.1	2.6	0.9	0.5	102.7	3.7
Total Measured + Indicated	107.4	0.7	0.3	0.1	0.10	1.1	2.6	0.9	0.5	102.7	3.7
Inferred
Viksha project	57.4	0.7	0.3	0.1	0.10	1.1	1.4	0.5	0.3	58.4	2.0
Total Inferred	57.4	0.7	0.3	0.1	0.10	1.1	1.4	0.5	0.3	58.4	2.0
Measured + Indicated + Inferred
Viksha project	164.8	0.7	0.3	0.1	0.10	1.1	3.9	1.4	0.8	161.0	5.7
Total Measured + Indicated + Inferred	164.8	0.7	0.3	0.1	0.10	1.1	3.9	1.4	0.8	161.0	5.7

1. Mineral Resources are reported in accordance with the JORC Code (2012). Estimate prepared by Polymetal as at 05.09.2019. Price for Pd = US$1,500/oz, Pt = US$800/oz, Au = US$1,200/oz and Cu = US$ 6,000/t. Revised estimate was not performed due to lack of material changes. Discrepancies in calculations are due to rounding.
2. PdEq is calculated using the following formula: PdEq = Pd (g/t) + Pt (g/t)/2.35 + Au (g/t)/1.46 + Cu (%)/0.76.

This estimate was prepared by employees of JSC Polymetal Management Company and JSC Polymetal Engineering, led by Mr Valery Tsyplakov, who assumes overall responsibility for the Mineral Resources and Ore Reserves Report.

Mr Tsyplakov is the employed full-time as the Managing Director of JSC Polymetal Engineering and has more than 19 years' experience in gold, silver and polymetallic mining. He is a Fellow of the Institute of Materials, Minerals & Mining (FIMMM), London, and a Competent Person under the JORC Code.

Listed below are other Competent Persons employed by the Company that are responsible for relevant research on which the Mineral Resources and Ore Reserves estimate is based:

* Geology and Mineral Resources - Roman Govorukha, Head of Geologic Modelling and Monitoring Department, JSC Polymetal Management Company, MIMMM, with 19 years' relevant experience;

* Mining and Ore Reserves - Igor Epshteyn, Head of Mining Process Department, JSC Polymetal Engineering, FIMMM, with 38 years' relevant experience;

* Concentration and Metals - Igor Agapov, Deputy Director of Science and Technology, JSC Polymetal Engineering, MIMMM, with 22 years' relevant experience.

All the above mentioned Competent Persons have sufficient experience that is relevant to the style of mineralisation and types of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' (JORC Code).

All Competent Persons have given their consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

 

Metals prices used in estimating Mineral Resources and Ore Reserves are listed below (unless otherwise indicated in the footnotes of the above tables):

Au = US$ 1,200/oz

Ag = US$ 15.0/oz

Cu = US$ 5,500/t

Zn = US$ 2,200/t

Pb = US$ 2,000/t.

Gold equivalent data is based on "Metal equivalent conversion ratios" provided in the Appendix below.

About Polymetal 

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is a top-20 global gold producer and a top-5 global silver producer with assets in Russia and Kazakhstan. The Company combines strong growth with a robust dividend yield.

Enquiries

Media		Investor Relations
FTI Consulting Leonid Fink Viktor Pomichal	+44 20 3727 1000	Polymetal Evgeny Monakhov Timofey Kulakov Kirill Kuznetsov	ir@polymetalinternational.com +44 20 7887 1475 (UK)   +7 812 334 3666 (Russia)
Joint Corporate Brokers
Morgan Stanley Andrew Foster Richard Brown Panmure Gordon James Stearns	+44 20 7425 8000       +44 20 7886 2500	RBC Europe Limited Marcus Jackson Jamil Miah	+44 20 7653 4000

 

Forward-looking statements

This release may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements speak only as at the date of this release. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "should" or similar expressions or, in each case their negative or other variations or by discussion of strategies, plans, objectives, goals, future events or intentions. These forward-looking statements all include matters that are not historical facts. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the company's control that could cause the actual results, performance or achievements of the company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the company's present and future business strategies and the environment in which the company will operate in the future. Forward-looking statements are not guarantees of future performance. There are many factors that could cause the company's actual results, performance or achievements to differ materially from those expressed in such forward-looking statements. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.

 

Appendix

Reporting of Metal Equivalents

Gold equivalent conversion ratio

GE=Me/k

Where Me is the evaluated metal content (silver g/t, copper %, zinc %, lead %)

Where k is the metal to gold equivalent conversion rate that is calculated considering the difference in metals value issuing the following formula:

For silver: k= ((Au price/31.1035 - (Au price /31.1035 - Treatment charge Au)*(Royalty Au)/100 - (Treatment charge Au))*(Recovery Au)) / ((Ag price/31.1035 - (Ag price/31.1035 - Treatment charge Ag)*(Royalty Ag)/100 - (Treatment charge Ag))*(Recovery Ag)),

for copper or zinc or lead: k = 100*((Au price/31.1035) - (Au price/31.1035 - Treatment charge Au)*(Royalty Au)/100 - (Treatment change Au))*(Recovery Au)) / ((Me price) - (Me price - Treatment charge Me)*(Royalty Me)/100 - (Treatment charge Me))*Recovery Me)),

where Royalty is the mineral extraction tax at applicable rate, recovery - the life-of-mine expected recovery of the respective metal in the processing technology applied.

Metal equivalent conversion ratios:

Deposit	Ore processing technology	k
		Ag	Cu	Zn	Pt	Pb
Dukat	Conventional flotation	83
Lunnoye (Ore Zone 5)	Cyanidation+Merrill Crowe process	94
Lunnoye (Ore Zones 6,7,9)	Cyanidation+Merrill Crowe process	82
Arylakh	Cyanidation+Merrill Crowe process	80
Goltsovoye	Conventional flotation	80
Perevalnoye	Conventional flotation	80		3.01		5.73
Primorskoye	Concentrate sales	91
	Cyanidation+Merrill Crowe process (run-of-mine ore)	141
Varvara	Primary ore with high copper content: Conventional flotation		0.51
Birkachan	Cyanidation carbon-in-pulp	101
	Heap leaching + сarbon-in-column	80
Olcha	Cyanidation+Merrill Crowe process	100
Tsokol Kubaka	Cyanidation carbon-in-pulp	100
Burgali	Cyanidation+Merrill Crowe process	105
Irbychan	Cyanidation+Merrill Crowe process	89
Yolochka	Cyanidation carbon-in-pulp	89
Nevenrekan	Cyanidation+Merrill Crowe process	89
Voro North	Cyanidation carbon-in-pulp	132
Voro West (oxide ore)	Heap leaching + Merrill Crowe process	155
	Cyanidation carbon-in-pulp	138
North Kaluga	Conventional flotation	91	0.68	7.76
Tamunier	Conventional flotation	199
Saum	Oxide ore:  Cyanidation carbon-in-pulp	111
	Cu-Zn primary ore: Conventional flotation	113	0.54	1.91
	Cu-Zn loose ore: Conventional flotation	63	0.38	1.38
	Zn - Conventional flotation	168		0.62
Prognoz	Conventional flotation (open-pit)	75				3.32
	Conventional flotation (underground)	75				1.91