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JSC "Polymetal" (LSE, MICEX, RTS: PMTL) announces that the on-site flotation concentrator at the Albazino mine was successfully started up with first dry gold concentrate bagged.
The concentrator is currently ramping up with one of the two 750 Ktpa parallel lines having reached commercial production. The second line is expected to reach commercial operation stage in June 2011. Initially the concentrate will be stockpiled with first shipments on river barges to the Amursk POX plant planned for June 2011. The POX facility is expected to start commissioning in Q3 2011 with first gold produced in Q4 2011. Albazino reserves are estimated at 2.3 Moz of gold with additional 0.7 Moz in resource category. Average life-of-mine annual gold-in-concentrate production for 2012-2022 is estimated at 180 Koz. The project was acquired for US$7 million in 2006. US$270 million was spent at Albazino in 2007-2011 comprising exploration (107 kilometers drilled up to date), project capex, ongoing overhead, and first-fill working capital. Exploration at Albazino group of licenses (covering the area of 279 square kilometers) continues with 42 kilometers planned to be drilled in 2011. Pre-Feasibility study on doubling the mill capacity with feed coming from a new underground mine is expected in Q4 2012. The Company believes resource expansion potential at the project makes spending on the PFS, including an underground decline to be commenced in Q3 2011, one of top strategic priorities for Polymetal. "The start-up of the Albazino concentrator marks Polymetal's first launch of a greenfield mine since 2004," said Vitaly Nesis, CEO of Polymetal. "We are proud that we were able to take the site from the go-ahead decision to successful commercial operation in 30 months and do it on budget despite very challenging logistical and climatic conditions. Albazino will remain a top priority for us as we see potential for very attractive medium-term returns from a possible brownfield mine expansion". |
