Polymetal Wins Auction in Khabarovsk Territory
OREANDA-NEWS. October 14, 2008. JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its subsidiary Albazino Resources LLC, won the auction for exploration and mining license on Agnie-Afanasievsky prospective area located in the Khabarovsk Territory, approximately 300 kilometers from Amursk (90 kilometers by all-seasonal road to the settlement of Kiselevka and 210 kilometers along Amur River), where the Company is currently building a gold POX facility, reported the press-centre of Polymetal.
The auction took place in Khabarovsk on October 7, 2008, and Polymetal’s winning bid amounted to 31.2m roubles (US1.2m).
According to the Federal Subsoil Agency (Rosnedra), resources of the Agnie-Afanasievsky mineralization zone amount to 5 tons (c. 161Koz) of gold according to the Russian P1 category.
A significant amount of exploration was conducted on the property during the mining of Agnie-Afanasievsky gold deposit, where 0.4Moz (11.7 tons) of gold were produced during the period of 1936-1953. As a result, a significant number of high-grade quartz veins have been discovered (average grade at the known ore bodies today amounts to 55g/t of gold); however, lower-grade stockwork mineralization of Albazino type remains unexamined.
The license covering the area of 441 square kilometers will expire 25 years after its issuance in 2008. The licensing agreement stipulates that Polymetal will have to drill not less than 5,000 meters during the five years after the license is issued.
“We are satisfied with the result of the auction”, said Vitaly Nesis, CEO of Polymetal. “As we firmly believe exploration is the best way to create value in our business, acquisition of new licenses in our key regions is the integral element of our strategy”.
In the Khabarovsk Territory, Polymetal operates Khakanja and Yurievskoye (a satellite of Khakanja) gold mines, owns 5 exploration licenses with a total area of c. 2,700 square kilometers, and runs Albazino-Amursk development project.
The Company believes Amursk POX facility expected to be commissioned in 2010 has a high potential of becoming a regional hub for processing of gold concentrates from refractory deposits across the Far East of Russia.