OREANDA-NEWS. November 15, 2007. OJSC Polyus Gold (RTS, MICEX and LSE - PLZL), Russia’s leading gold producer, announces that the company’s Board on its meeting held today approved the basic parameters of the company’s two projects in Krasnoyarsk region – Blagodatnoye and Titimukhta.

Titimikha

 The licence holder for Titimukhta deposit  is ZAO Polyus, a wholly owned subsidiary of Polyus Gold. In 2004-2007 exploration works have been done at the deposit, resulting in the reserves increase from 40.2 tons (1.3 m oz) to 78.3 tons (2.5 m oz) at 3.02 g/t. The reserves are expected to be listed with the State Reserves Committee (GKZ) by end of 2007.

According to the approved project, the annual ore processing capacity will amount to 1.5 million tonnes in 2009 and will increase to 2.2 million tonnes beginning in 2010. The average gold production will amount to 3.7 tonnes (119 k oz) in 2009 and will reach 5.3 tonnes (170 k oz) in 2010. According to the decision taken by the Board of directors of Polyus Gold, the total investments into the project (less exploration expenses) for the period 2006-2010 will amount to $98.7 million (excluding VAT).

Blagodatnoye
ZAO Polyus is the licence holder for Blagodatnoye deposit. The balance reserves of the deposit as of 1 January 2007 amount to 222.4 tonnes (7.2 m oz) at 2.44 g/t.

According to the approved feasibility study, the project will include the construction of a gold processing plant.  The plant will be launched in 2010 and during its first year of operation will process 3 million tonnes of ore. In 2011 the capacity of the plant will reach  6 million tonnes of ore per year.  The average gold production will amount to 6.4 tonnes (206 k oz) in 2010 and will increase to 12.8 tonnes (412 k oz), starting from 2011. The total amount of investments into the project, according to the decision taken by the Board of Directors of Polyus Gold, will be equal to $390 million (excluding VAT).
General Director of Polyus Gold Evgueni Ivanov noted that Blagodatnoye and Titimukha are located in immediate proximity to Polyus’ Olimpiada mine, which is creating synergy for the projects in the area of infrastructure and repair services development. Both projects are included in the Strategy till 2015 approved by the Board in September 2006. Mr. Ivanov said: “We are pleased with decision of the Board, which will allow the company to start mining at the deposits according to the schedule approved by the Strategy”.