Polymetal begins production at its Nezhda gold and silver mine in Russia
(Kitco News) - Russian mining company Polymetal,a top-10 global gold producer and top-5 global silver producer, today announcedfirst concentrate production at the Nezhda gold-silver mine, located in Russia.
"Following the completion ofall construction and commissioning activities, Nezhda successfully producedfirst gold and silver concentrate on October 16th. This is two weeks ahead ofthe previously announced target date of November 1st," the companysaid in a statement.
The concentrator now enters aramp-up period and is expected to reach its nameplate capacity and full designrecovery by April 2022, the company added.
This year, Polymetal plans toproduce up to 30 Koz of gold equivalent ("GE") at Nezhda with averageproduction of 180 Koz per year in 2022-2024 at estimated AISC of US$850-900/oz. Further production upside is linked to the opportunity ofprocessing ore from the high-grade Prognoz silver deposit 100% owned byPolymetal.
JORC-compliant Ore Reservesat Nezhda are estimated at 4.4 GE Moz at a grade of 3.6 g/t with 24 years ofmine-life. Mineral Resources additional to reserves amount to 8.1 Moz of GE at5.1 g/t grade.
"Starting production onschedule, first announced in Q4 2018, demonstrates Polymetal's executingstrength in the face of multiple challenges," said CEO Vitaly Nesis. "The mineshould ramp-up to full capacity and start generating free cash flows by Q2 2022."
Polymetal International is atop-10 global gold producer and top-5 global silver producer with assets inRussia and Kazakhstan.
By Vladimir BasovFor Kitco News
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