28 May 2019
Polymetal formed a partnership with a company associated with Mineral Exploration Network (Finland) Ltd (“MEN”) for early-stage exploration in the Chaunsk region of Chukotka, Russia.
“Our strategy of working with junior explorers is gaining momentum”, said Vitaly Nesis, Group CEO of Polymetal. “MEN has extensive and varied experience in using advanced state-of-the-art methods of prospecting and grassroots exploration.”
The objective of the JV is to discover high-grade near-surface gold mineralisation that can provide feed for the Mayskoye processing plant. The plant is capable for treating both sulphide ore through the flotation circuit and oxide ore through the CIL circuit.
Polymetal and MEN have entered into an agreement whereby:
Polymetal has agreed to fund a staged exploration campaign that will take place in 2020-2023 and is expected to result in an initial JORC-compliant Mineral Resource or Ore Reserve estimate.
Polymetal will earn 25% in the JV by contributing RUB 20 million (approx. US$ 0.3 million) to the share capital with an option to increase its stake to 80% by contributing RUB 60 million (US$ 0.9 million) upon completion of the first-year field program in 2020.
Polymetal will also retain a 5-year option to increase its interest to 100% subject to positive exploration results.
Total investments by Polymetal are not expected to exceed US$ 10 million.
MEN - is an experienced UK-based junior explorer with a strong track record of prospecting in Finland and Spain. MEN will assume responsibility for prospecting an area, which covers approximately 83 km2 in the Chaunsk region of Chukotka.