Polymetal Obtains Construction Approval for New Gold Mine

SEATTLE (Scrap Monster): Polymetal International- the leading precious metals mining group has received construction approval for a significant gold project. The company had recently announced successful completion of feasibility study for its Nezhda gold mine project in eastern Siberia. The project is said to have mineral resource of 12.4 mln ounces of gold equivalent.

The company estimates pre-production capital expenditures at around $249 million. The first production from the mine is scheduled for the last quarter of 2021, with full ramp-up expected by second quarter of 2022. The company estimates the annual mine production at 180,000 ounces during the initial three full years of operation. The gold mine feasibility study proposes 19 years of conventional open pit mining from 2019 to 2037 and 17 years of underground ore mining from 2029 to 2045. The projected open-pit mining volumes are currently estimated at 2.2 Mtpa of ore.

The gravity gold concentrate produced by the Nezhda mine will be processed at Polymetal’s Amursk POX plant. Meantime, flotation concentrate gold from the mine will be sold to third parties.

Vitaly Nesis, Group CEO of Polymetal stated that Nezhda is classified as a long-life, high-grade asset with robust economics. The mine will start contributing to dividends per share as early as 2022, he said.