OREANDA-NEWS. JSC "Polymetal", through its subsidiary Penchenga Gold (to be transferred to a JV with AngloGold Ashanti once the JV is incorporated), won the auction for exploration and mining license of the Sovremenny prospect located in the Krasnoyarsk Territory of Russia, 350 km north of Krasnoyarsk, the press center of the company reported.

The auction took place in Krasnoyarsk on October 18, 2007, and Polymetal's winning bid amounted to 26.4 mln roubles (US$1.1 mln).

According to the Federal Subsoil Agency (Rosnedra), Sovremenny prospect consists of 4 main mineralization zones. The most prospective one is the Sovremenny zone which contains 40 tons (1.3 Moz) of gold (Russian P2 category). Thickness of core ore bodies at Sovremenny zone ranges from 1 to 7 meters with grades ranging from 1 g/t to 12.9 g/t of gold. The license covering the area of 390 square kilometers (which lies within the same Archean greenstone as Olimpiada, operated by Polyus, and Veduga) will expire 25 years after its issuance later this year.

"Sovremenny prospect is an important contribution to the proposed JV in the Krasnoyarsk Territory," said Vitaly Nesis, CEO of Polymetal. "Its proximity to Veduga suggests the possibility of logistical and technological synergies in the region, where we expect to further broaden our exploration portfolio in the months to come."

In 2006, Polymetal and AngloGold Ashanti areed to enter into a 50/50 strategic alliance to cooperate in exploration, acquisition and development of gold mining opportunities within the Russian Federation. Apart from Sovremenny, the said JV will own Veduga and Bogunay gold deposits (both in the Krasnoyarsk Territory) and two greenfield exploration projects - Anenskoye in the Krasnoyarsk Territory and APU in the Chita Region.