OREANDA-NEWS. The first stage of Yurievskoe development has been completed. By the end of 2007 all infrastructure facilities will be commissioned and the Company will start full-scale open-pit mining in 1Q of 2008. Yurievskoe ore will be treated at the Khakanja processing plant with design capacity is 600 000 tonnes of ore/year. Design annual ore output at Yurievskoe deposit 100 000 tonnes, reported the press-centre of  Polymetal.

The main objective of launching Yurievskoe is to fast-track mining higher-grade ore (13,3 g/tonne of gold) and speed up the development of nearby exploration assets - Khakari and South Urak - which will share Yurievskoe’s infrastructure.

By now the Company has repaired the accommodation camp buildings at Yurievskoye, started constructing maintenance facilities, built the fuel storage depot and the explosives warehouse, completed the helicopter landing strip, and installed diesel-powered gensets. In the summer site development will continue with the construction of the winter road for future ore transportation to Khakanja (to be handled by contractors). The Company plans to use winter-road for 100-120 days a year while in warm season the site can be accessed by helicopter. By the end of 2007 the construction of all site roads, ore storage, and the administrative building will be completed.

The deposit development is conducted under the license valid till December 31st 2014 with the right to use subsoil for exploration and mining. In March 2007 the company held environmental hearings related on Yurievskoe in the local Okhotsk municipality. The public endorsed the development project for the deposit as bringing new tax money and jobs to the area.

The 50,2 sq.km.Yurievskoe deposit is located 90 km north-west from Okhotsk and 60 km from Khakandja gold-silver mine. In accordance with JORC Code ore reserves at Yurievskoe deposit as of 31.12.2006 amount to 385 th. tonnes of ore containing 165 th. oz., Au and 141 th. oz., Ag. Mineral resources are estimated at 740 th. tonnes of ore containing 266 th. oz., Au and 281 th. oz., Ag.

Commenting on the Yurievskoe development Vitaly Nesis, Polymetal CEO, stated: “Processing of Yurievskoe’s ore will allow to add a new high-grade source of minable reserves for Khakandja and consequently increase production at Khakandja deposit to 2009 by 1000 kg of gold per year. Also, Yurievskoe development will provide much needed infrastructural leverage for ramping up the regional grass-roots exploration campaign in adjacent areas with significant potential. We believe that intense exploration work at South Urak, Amka, and Khakar prospects will allow the company to extend mineral resource base and ensure a further growth of reserves”.