Polymetal increases interest in Tarutin to 100%

RNS Number : 5546V
Polymetal International PLC
31 January 2017
 

Release time

IMMEDIATE

Date

31 January 2017

 

 

Polymetal International plc

Polymetal increases its interest in Tarutin to 100%

 

Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries - "Polymetal", the "Company", or the "Group") is pleased to announce that it has fully consolidated its interest in LLC "Vostochny Basis" (licence holder for the Tarutinskoye copper deposit ("Tarutin")) increasing its stake from 75% to 100%.

Tarutin is a conventional copper-gold skarn deposit that is an excellent fit with

A reserve estimate for the deposit is expected in Q3 2017, with mining planned to commence in 2018 with the goal to deliver and process up to 300Kt of ore at Varvara in order to produce 4-5 Kt of copper per annum in FY2018-2020.  

The Tarutin licence plot covers an area of 1.8 km2 in the Chelyabinsk region, 28 km from the town of Chesma (population of approximately 7,000). The infrastructure in the region where the licence area is located is well developed with a railway station located 20 km from the deposit.

The Ore Reserves in accordance with the JORC Code (2012) are estimated as follows:

Tarutin Ore Reserve estimate, as at 1 January 2016

Ore Reserves

Tonnage

Grade

    Content

Kt

Au (g/t)

Ag

(g/t)

Cu (%)

GE (g/t)

Au (Koz)

Ag (Koz)

Cu

(Kt)

GE (Koz)











Probable

890

0.1

13

1.62

3.3

3

359

14.4

93

Note: Ore Reserves in accordance with the Company's ownership equal to 100%. Metal prices used for the estimate: Au = US$1,100/oz, Ag = US15.0/oz, Cu = US$5,000/t

"We have decided to consolidate 100% ownership over Tarutin as it is a natural close fit for our Varvara hub and enhances its copper reserve base" - said Vitaly Nesis, Group CEO of Polymetal. "Tarutin is expected to start providing cash flows in the near term".

Enquiries

Media

 

Investor Relations

FTI Consulting 

Leonid Fink

Jenny Payne

+44 20 3727 1000

Polymetal

Maxim Nazimok

Evgenia Onuschenko

Maryana Nesis

ir@polymetalinternational.com

 

+7 812 313 5964 (Russia)

+44 20 7016 9503 (UK)

Joint Corporate Brokers

 

Morgan Stanley

Sam McLennan

Richard Brown

+44 20 7425 8000

RBC Europe Limited

Tristan Lovegrove

Marcus Jackson

+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


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