In the light of recent developments, and in the interests of preserving shareholder value, the Board and the Special Committee have decided to consider all possible options available for divestment of JSC Polymetal and its subsidiaries.
Key facts
| Location | Khabarovsk Territory, Russia |
| Ownership | 100% |
| Operating mines | Svetloye |
| Key exploration projects | Svetloye flanks |
| Mining | Open pit |
| Processing | 1.3 Mtpa heap leaching circuit |
| Ore reserves (JORC) | 0.3 Moz GE, 2.8 g/t average grade |
| Mineral resources (JORC) | 0.1 Moz GE, 1.4 g/t average grade |
| Production start date | 2016 |
| Life of mine | 2026 |
| Employees | 641 |
Svetloye is a heap-leach operation that was started up in 2016. The planned life of mine ends in 2026, with further potential extensions as a result of successful nearby exploration.
Gold production contracted by 5% year-on-year driven by grade dynamics during the first nine months of 2022. Ongoing Emmy pit development drove increases in ore mined (up 41% year-on-year) and grade processed (up 6% year-on-year). Ore mining also advanced.
The increase in waste mined is attributable to the development of a new pit, Nadezhda, as well as new pushback (Stage 3) at the Emmy pit.
- Increased average monthly productivity at the open-pit.
- Several technical measures aimed at increasing the productivity of mining dump trucks.
- Replacement of the pump equipment aimed at increasing stacking volumes.
- In 2022, exploration activities included prospecting, appraisal and core drilling, with 9 km of holes drilled.
- 21,000 m³ of surface mining was completed.
- In 2023, the plan is to continue prospecting and exploration activities on the flanks of Larisa, Emmy and Yelena ore zones to evaluate previously identified ore zones and to trace gold mineralisation down dip and along the strike.
- 76% of water on site is used in the closed cycle.
- More than 6% of electricity generated from renewable energy sources (solar and wind energy).
- Food waste recycling systems.
- Stable production and high grade ore from deep levels of Emmy pit.
- New heap-leach pads construction.
In 2018, the Company implemented two green energy pilot projects at Svetloye which otherwise relies on diesel gensets: we were the first mining company in Russia to install solar power plant, with a capacity of 1 MW to supply Svetloye main production site, and a wind a wind turbine for 100 kW at the seaport of Unchi — local supply hub for Svetloye. As a result, we expect to generate 1,500 kW*h of environmentally-friendly electricity each year, resulting in a reduction of 640 tonnes in GHG emissions annually.
Svetloye is located in the Okhotsk district of the Khabarovsk Krai in the Far East of Russia. The project lies in unpopulated remote mountainous area with taiga forest in the valleys and tundra covering hilltops.
Svetloye is located 240km south-west of Okhotsk, the access port for Khakanja mine (sold in 2018). It is accessible by a 380 km winter road from Okhotsk and by 92 km winter road from Unchi seaport which will be used for delivery of fuel and supplies during the summer navigation period. Between May and November access to the site is by helicopter.
The deposit was discovered in 1973. Significant exploration was undertaken between 2003 and 2005 with a total of 38 trenches excavated and 28 diamond drillholes drilled. Between 2006 and 2009 further 62 trenches were excavated and 273 diamond drillholes drilled. Total drilling amounted to 42,730 m and total trenching comprised 124,994 m3.
Polymetal acquired Svetloye exploration and mining license in December 2010 for the total consideration of US$ 9.25 million. In 2013 Polymetal drilled 17 diamond drillholes totaling 2,956 m and 33 reverse circulation (RC) drillholes totaling 6,474 m.
The construction at Svetloye has been completed nine months ahead of the original schedule. Total capital expenditure comprised US$ 60 million, which is 33% below initial project estimates, primarily driven by the significant devaluation of the Russian Rouble since the start of construction in 2014. The leaching process commenced on 15 August 2016 and the first 10 Koz of gold were produced at the Merrill Crowe circuit on 29 August 2016.
Gold mineralisation at Svetloye is formed by vuggy silica (secondary quartzite) associated with a high-sulphidation epithermal system. Most of gold mineralisation is very fine grained and disseminated. Gold-bearing silicification occurs as flat lenses or pods, which outcrop at the surface and have true widths of between 20 and 120 m. Higher-grade zones are adjacent to breccias. The oxidation zone develops to a depth of 150 m.
Three ore zones (Emmy, Elena and Tamara) are proposed to be mined at Svetloye. Open pit mining will be conducted by conventional drill-and-blast and truck haulage. The average strip ratio over the life of the mine is 1.4 t/t. The open pits will reach the maximum depth of 130 meters.
Flowcharts
Open-pit mining
Svetloye ore is processed by heap leaching with the pads and the plant located within 5 km from the main pits. Ore is crushed only in warm season to minus 20 mm, mixed with crushed limestone, and stacked by trucks in lifts with the height of 15 meters. Solution from the heap leach pad will be processed through the 400 m3/h capacity Merrill-Crowe plant.
| Ore Reserves | Tonnage, Mt | Gold grade, g/t | Silver grade, g/t | Copper grade, % | GE grade, g/t | Gold, Koz | Silver, Moz | Copper, Kt | GE, Koz |
|---|---|---|---|---|---|---|---|---|---|
| Total | 3.7 | 2.8 | - | - | 2.8 | 328 | - | - | 328 |
| Mineral Resources | Tonnage, Mt | Gold grade, g/t | Silver grade, g/t | Copper grade, % | GE grade, g/t | Gold, Koz | Silver, Moz | Copper, Kt | GE, Koz |
| Total | 3.2 | 1.4 | - | - | 1.4 | 139 | - | - | 139 |