JSC Polymetal has completed the preparation of an updated feasibility study ( Feasibility Study) project development gold deposit Albazin undertaken by Polymetal Engineering. Feasibility study was proaudirovano by Snowden Mining Industry Consultants Inc.

• Resources is 3 million ounces of gold with an average content of 4.3 g /t.

• Reserves comprise 2.3 million ounces of gold with an average content of 4.1 g /t (estimate made at the price of US $ 700 per ounce of gold in the light of the on-board content 1.65 g /t). The level of confidence as the reserves have increased significantly, as most of the reserves into the proved (Proved) - 1.4 million ounces with an average content of 4.6 g /t.

• Plan and schedule of mining operations are achievable and consistent with information provided in all sections of the feasibility study. Snowden reviewed the draft pits and found them acceptable and sufficiently detailed to prove their feasibility.

• The total amount of capital expenditures to be incurred during construction is estimated at 238 million U.S. dollars (excluding VAT), which represents approximately 9% of growth compared with the initial assessment, mainly due to increases in design capacity Amursky MMC and adverse changes in the United States dollar against the euro.

• Polimetall confirms its plans to get the first gold at the end of 2010 and put both mine and mill at full capacity by the end of 2011.

We have successfully achieved the first key point with regard to Albazin, said Vitaly Nesis, Polymetal, the Director-General. We now concentrate on running flotation mill at the 3 rd quarter of 2010 and taking into account the supply of concentrate from the recently acquired fields Maiskoe draft Amursky MMC.

Mineral resources and ore reserves

Resources and Reserves Albazin deposits as of May 2009, submitted under the Code JORK 2004 are listed below. Snowden believes that the Mineral Resources Albazin a reasonable reflection of the input parameters and the geological model, and have acceptable quality for use in preparing the feasibility study for the development Albazin.

Mineral Resources of gold Albazin

Ore Reserves of gold, Albazin

Mining

Mining for Anfisinskoy and Olginskij ore zones will be conducted openly. Develop career Anfisinskoy ore zone will begin in 2009, but on Olginskij - in 2016. The height of benches for the extraction of quarry rock was chosen at 10 meters and height of benches for the extraction of ore - at the rate of 5 meters. The final height ledges quarry adopted in the amount of 30 meters from the angles of slope and width of berms transport. Snowden considers the choice of the geometry of angles of slope, height and width of berms ledges quarry technically correct and feasible.

Polimetall found average gradient downward mining pit in the amount of 30 meters per year with a maximum gradient of 50 meters per year, which corresponds to prirezke 5-10 ore ledges and ledges 3-5 opening per year. These assumptions can recognize conservative as compared to international standards, thus we can say that they are not for the draft of a risk.

The average stripping ratio of approximately 8.1 t /t.

Metallurgy and Processing

As ore deposits Albazin is hard, Polimetall build at the factory flotation concentration, which will be auriferous flotokontsentrat. This concentrate will be delivered in the Amur, where the extraction of gold will be used by advanced technology autoclave leaching ( POX).

At factory flotation concentration would involve the standard rules dvuhstadialnoy flotation of low-density pulp to effectively achieve the maximum possible content of gold in concentrate despite the high clay ore flow. According to a feasibility study, the rate of extraction of gold in a series of flotation will be 87.5%, which corresponds to the exit of concentrate at a rate of 10%. Technological research in the laboratory confirm the validity of these indicators for use in a feasibility study.

Logistics

According to feasibility studies, ore Albazin will be processed directly at the receiving flotokontsentrata, which will be subject to filtering, drying and delivery by road and river in the town of Amur, where the factory will be built autoclave leaching and extraction of gold. Transportation will be concentrated in the 2-ton bags. Road transport will be a year-round, while the delivery by barge will be only six months of the year when the river is ice-free.

Based on an analysis of the feasibility study and visit promploschadok, Snowden considers that the logistics project has been given due attention.

ecology, labor protection and safety, relations with the local community

As part of the audit Snowden reviewed the sections of the feasibility study related to the environment, safety and security, as well as relations with the local population. Detailed feasibility study examines the impact of the project on the environment and addresses all of these important aspects. Discussions on this topic between Snoudenom and Polimetall showed that all the relevant development were carried out in accordance with Russian legislation and standards.

Based on an analysis of the feasibility study and visit promploschadok, Snowden believes that aspects related to environment, safety and security and relations with the local population have been addressed adequately.

potential for further growth

many promising sites were discovered in close proximity to the two main ore zones, and Anfisinskoy Olginskij, which themselves have not yet okontureny drilling. At Anfisinskoy potential ore zone continues to the north-east, as well as in the south and the dip. At Olginskij ore zone continues dorazvedki potential to the north, south, the dip, as well as at depth.

Polimetall continued an active exploration aimed at increasing the resource base Albazin up to 6 million ounces of gold at the end of 2011.

In total licensed area Albazin was found six ore zones. Of these, only two - Anfisinskaya and Olginskij - have been studied sufficiently to make the data on them were included in the feasibility study.

feasibility study also does not consider the possibility of underground mining, as well as the content of gold at great depths are not as high. Nevertheless, further exploration of the ore bodies which have not been okontureny the dip, can significantly increase the resources and to identify potential joint development by open-pit and underground methods. Drilling results received to Olginskij and Catherine ore zones since the end of the audit confirms the significant potential for growth at depth, taking into account the capacity of intersections and a high content, sample results are the following table:

Polimetall will provide regular updates on the status of the project.
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