OREANDA-NEWS. OJSC Polyus Gold (RTS, MICEX, LSE – PLZL), Russia’s leading gold producer, today announced the production results for the year 2006.

According to the press service of the company, the full year gold output showed a 17% year-on-year increase up to 37.8 tonnes (1 215 k oz), compared to 32.4 tonnes (1 038 k oz) in 2005.

Increase in output is largely attributable to organic growth through the planned increased in mining of low grade sulfide ores at Olimipiada mine in Krasnoyarsk region, along the additional production coming from the Kuranakh mine in the Republic of Sakha (Yakutia), acquired at the end of 2005.

In 2006 Polyus’ production units mined 12.7 m tonnes of ore, as compared to 6.7 m tonnes of ore in 2005. The ore processed in 2006 totaled 8.8 m tonnes, compared to 5.7 m tonnes in the previous year.

The substantial increase in the ore mined and processed is due to the acquisition of Kuranakh mine as well as to the planed increase in mining of low grade sulfide ores at Olimpiada deposit.