Polymetal International plc (LSE, MOEX: POLY, ADR: AUCOY) (together with its subsidiaries – “Polymetal”, the “Company”, or the “Group”) provides an Exploration update for the year ended 31 December 2017, and reports its Ore Reserves and Mineral Resources as at 1 January 2018 in accordance with the JORC Code (2012).
- In 2017, the Company continued to use conservative gold and silver price assumptions from the previous year of US$ 1,200/oz and US$ 16/oz, respectively.
- The Company increased its Ore Reserves by 5% to 20.9 Moz of gold equivalent (GE) on the back of successful exploration at Albazino, Komar and Dukat, as well as initial reserve estimates at Kapan and Nezhda.
- Gold reserves were up 5% at 18.4 Moz, while silver reserves decreased 3% to 158 Moz. At the same time, copper reserves grew 25% to 82 Kt.
- Mineral Resources (in addition to Ore Reserves) increased 10% to 18.2 Moz of GE, mainly driven by initial resource estimates for the Pesherniy and Nezhda deposits, as well as resource additions at the deeper levels of Mayskoye and Dukat.
- The average grade in Ore Reserves was stable year-on-year at 3.9 g/t of GE and remains one of the highest in the sector. At the same time, the average grade in Mineral Resources increased 11% to 4.7 g/t of GE due to high-grade resource additions at new projects.
- Polymetal completed 421 km of exploration drilling in 2017, up 48% year-on-year as the scope of exploration expanded to include new assets, mostly Prognoz and Nezhda, in addition to continued exploration efforts at existing operations.
“In 2017, Polymetal succeeded in extending life-of-mine at producing assets and continued to invest in the next leg of our growth”, – said Vitaly Nesis, Group CEO of Polymetal, commenting on the results. “We expect 2018 to result in further significant extensions of our reserves and resources”.