ArmInfo. In 2017 Polymetal International plc will publish a JORC- compliant reserve estimate and a combined LOM plan for Kapan and Lichkvaz, the company's press release says.
"In the course of 2016 we significantly strengthened the resource base of our operating mines and successfully advanced our long-term growth strategy," said Vitaly Nesis, Group CEO of Polymetal, commenting on the results. "In 2017, we plan to focus on converting resource additions into reserves growth. The key elements of this plan involve initial reserve estimates at Nezhda and Kapan as well as material resource-to-reserve conversion at Kapan, Lichkvaz, Omolon and Komar."
The company notes in its press release that in 2016 Polymetal's Ore Reserves decreased by 5% to 19.8 Moz of gold equivalent (GE) mainly due to mining depletion and a downgrade at Varvara which were partially offset by reserve additions from the new acquisition at Komar, Dolinnoye and an upgrade at Svetloye. Mineral Resources (additional to Ore Reserves) increased by 29% to 16.5 Moz of GE, mainly driven by the acquisitions of Kapan and Komar, as well as the initial Mineral Resources estimates at Levoberezhny and Lichkvaz.
Earlier it was reported that Polymetal International plc announced the successful completion of an audit of Mineral Resources by CSA Global Pty Ltd ("CSA Global") for the 100%-owned Lichkvaz project. Total underground Mineral Resources in accordance with the 2012 JORC Code confirmed by independent auditors, CSA Global, comprised of 4.3 Mt of ore averaging 4.2 g/t for 0.6 Moz of gold equivalent. In 2016, Polymetal intended to transport ore mined at Lichkvaz 70 km to the Kapan concentrator for processing. The acquisition of the Kapan concentrator together with the underground mine and related infrastructure was completed by Polymetal on 28 April 2016 (details of the transaction were provided in the press releases dated 2 March and 28 April 2016).
Lichkvaz is located in the Meghri area of the Syunik-Marz province of southern Armenia, 380 km south of Yerevan. The infrastructure in the area is well- developed with power, water, accommodation and a skilled labour force readily available. The main economic elements at the deposit are gold and copper, with silver considered a by- product.
Earlier, Polymetal International plc (together with its subsidiaries - "Polymetal", the "Company", or the "Group") announced that it increased its interest in the Lichkvaz property in Armenia to 100%.
Polymetal purchased an additional 75% stake in the company holding Lichkvaz property in Armenia, and increased its ownership from 25% to 100%. The consideration comprises 1,084,853 Polymetal shares equal to US$9.7 million (0.26% of increased share capital). Details of the Transaction on the acquisition of a 25% stake can be found in the Company's announcement from 15 April 2015. The decision to increase the Company's interest to 100% was taken following successful results of exploration drilling performed during surveying season 2015.
Drilling has been completed, with 15,800 metres drilled across 70 diamond drill holes. To date, samples taken from 20 drill holes have been analysed (representing c.25% of total number of samples). Based on the first data obtained, nine productive intersections have been discovered with the average grade of 6.4 g/t GE per average true width of 4.5 metres. The Company plans to further analyse exploration data obtained during 2015 and to prepare a resource estimate (JORC compliant) for release in Q2 2016.
Lichkvaz is located in the Meghri area of the Syunik-Marz province of southern Armenia, 380 km south of Yerevan. The infrastructure in the area is developed with power, water, accommodation and skilled labour force available.
A previous resource estimate (not JORC compliant) puts the total mineral endowment of the property at 2.4 Mt of material at 6.9 g/t in the inferred category for approximately 0.5 Moz of gold equivalent contained.
The geology of the project is characterised by a series of near-vertical shears and steep westerly dipping vein sets ranging up to 4-5 metres in width, hosted in andesite. The strike length of the system is about 800 metres, with northern extension covered by glacial till. The Lichkvaz property area is a part of the Tethyan Belt. The Company believes that property retains significant exploration potential. Polymetal is a leading gold and silver mining group, operating in Russia and Kazakhstan. Company's shares are listed on London and Moscow Stock Exchanges. Polymetal is a constituent of FTSE 250 and FTSE Gold mines.