OREANDA-NEWS. June 21, 2011. JSC "Polymetal" (LSE, MICEX, RTS: PMTL) ("Polymetal" or the "Company") is pleased to announce the successful completion of Reserves and Resources Audit ("Audit") performed by Snowden Mining Industry Consultants ("Snowden") for the Varvarinskoye deposit, Kazakhstan.

Total Ore Reserves are estimated to contain 0.9 Moz of gold at an average grade of 0.9 g/t Au and 56 Kt of copper at an average grade of 0.50% Cu in 30.6 Mt of ore.
Total Mineral Resources (exclusive of those Mineral Resources modified to produce the Ore Reserves) are estimated to contain 1.1 Moz of gold at an average grade of 0.8 g/t Au and 76 Kt of copper at an average grade of 0.44% Cu in 42.4 Mt of mineralized material.

The Ore Reserves are sufficient to support a 7 year mine-life for the Leach circuit and 12 years of mine-life for the Float circuit. Life-of-mine can be extended by another five years for leach circuit and for another six years for flotation circuit if measured and indicated resources are ultimately included in the mine plan, which is expected to be feasible if current levels of gold and copper prices are sustained in the long run.

"The independent Audit confirmed that Varvara is a viable long-lived asset with substantial reserves and resources endowment. We will continue to look for the ways to expand Varvara's reserves and generate further value-enhancing opportunities from the asset," said Vitaly Nesis, CEO of Polymetal.