OREANDA-NEWS. June 07, 2007. In 2006 the Dukat deposit (Magadan region) — the third silver mine in the world according to GFMS and Silver Institute — produced 12,6 Moz. [393 tonnes] of silver, reported the press-centre of  Polymetal.

By the end of 2008 the construction of Dukat processing plant stage II will allow to increase silver production at the deposit by 50% through the ore processing expansion from 950 Kt to 1,5 Mtpa, and to increase recovery rate.

The new facilities are planned to be commissioned by the end of 2008. The Company plans to increase grinding circuit throughput, to expand flotation and concentrate drying circuit as well as to build a new tailings storage facility. In Q4 2007 the Company plans to commission a new SAG mill, a ball mill is to follow in 2008 as well. The new tailings facility is expected to be complete in Q3 2007. Company has recently commissioned flash flotation circuit, an investment targeted to increase recovery rate by 2-3%. The second flotation line comprising both flash and conventional flotation is planned to be commissioned in Q4 2008.

As a part of the expansion, the new fully automatic control system has been introduced in Q2’2007 which should result increased productivity and lower costs.

Polymetal plans to complete the Dukat expansion project by the end of 2008. The ore feed will come initially from Nachalnoe-2 located on Dukat flanks where the company expects to publish the initial JORC-compliant reserve audit in Q4’2007. Total capital expenditures are estimated as US$ 50 mln, including US$ 18 mln for exploration from 2006 to 2010 of which $20 million has already been invested.

“I am satisfied with the progress on the Dukat expansion project and confident that it will be completed on time. This project is a central part of our strategy to increase silver production by 50% by 2010 and should add 6 Moz of silver per annum once completed”, — stated Vitaly Nesis, Polymetal’s CEO.