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Polymetal : Ore Reserves, Mineral Resources and Exploration update as at 1 January 2021

03/01/2021 | 02:02am
Polymetal International plc (POLY) 
Polymetal: Ore Reserves, Mineral Resources and Exploration update as at 1 January 2021 
01-March-2021 / 10:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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Release time  IMMEDIATE                                                               LSE, MOEX, AIX: POLY / ADR: AUCOY 
Date          01 March 2021 Polymetal International plc 

Ore Reserves, Mineral Resources and Exploration update as at 1 January 2021

Polymetal announces its Ore Reserves and Mineral Resources as at 1 January 2021 in accordance with the JORC Code (2012) and exploration update for the year ended 31 December 2020.

"We delivered maiden reserve estimates at several of our projects resulting in a substantial increase in total Group Ore Reserves. We are confident in our ability to continue per share reserve accretion while maintaining conservative price assumptions", said Vitaly Nesis, Group CEO of Polymetal. "This year we are going to significantly advance our greenfield exploration with the aim of extending resource base at a relatively low finding cost".

2020 HIGLIGHTS ? In 2020, Group Ore Reserves increased by 10% year-on-year to 27.9 Moz[1] of gold equivalent (GE) driven by initial

Ore Reserve estimates at East Bakyrchik (Kyzyl), Prognoz, and Pesherny (Voro hub). This has more than compensated

for depletion and ownership dilution at Veduga. GE Ore Reserves per share grew by the same 10%. ? Share of Ore Reserves for open-pit mining stood at 53%, up by 2 percentage points (p.p.) year-on-year, while share

of refractory reserves amounted to 72%, declining by 2 p.p. Both of these developments are attributable to Prognoz

reserve initial estimate. ? Share of silver in Ore Reserves increased by 5 p.p. to 11% also on the back of the significant contribution from

Prognoz. ? Mineral Resources (additional to Ore Reserves) declined by 14% year-on-year to 21.8 Moz of GE primarily due to

resource-to-reserve conversion. This conversion was partially offset by new Mineral Resource estimates at Albazino

(Talgiy) and Veduga. Mineral Resources inclusive of Ore Reserves were essentially stable at 49.7 Moz of GE. ? The average grade in Ore Reserves was marginally up year-on-year and stood at 3.8 g/t of GE. Average GE grade in

additional Mineral Resources was down 10% year-on-year. Polymetal GE grades continue to be one of the highest

within the sector globally. ? Polymetal maintained conservative price assumptions for both Ore Reserve and Mineral Resource estimates at USUSD

1,200/oz for gold and USUSD 15/oz for silver. Short-term price assumptions used for tactical mine planning and

sequencing are USUSD 1,500/oz and USUSD 20/oz respectively. Ore Reserves and Mineral Resources summary (1), (2)

                                                                         1 January 2021 1 January 2020 Change, % 
 
Ore Reserves (Proved + Probable), gold equivalent Moz                    27.9           25.2           +10% 
Gold, Moz                                                                24.9           23.7           +5% 
Silver, Moz                                                              246.3          116.0          +112% 
Average reserve grade, g/t                                               3.8            3.7            +0% 
 
Ore Reserves per share, GE oz/per share                                  0.059          0.054          +10% 
 
Mineral Resources (Measured + Indicated + Inferred), gold equivalent Moz 21.8           25.4           -14% 
Gold, Moz                                                                19.5           20.3           -4% 
Silver, Moz                                                              191.9          337.7          -43% 
Average resources grade, g/t                                             4.7            5.2            -10%  1. Ore Reserves and Mineral Resources from continuing operations. Lichkvaz, Oroch, Sopka Kvartsevaya, Dalneye and 

Irbychan mines were classified as discontinued operations as at 01.01.2020 and are not included in this estimate.

Base metal are not included in the 2021 GE calculation, while they were included in calculation of the 2020 GE. 2. Mineral Resources are additional to Ore Reserves. Mineral Resources of platinum group metals and rare earth metals

are given separately and are not included in the calculation of the gold equivalent. Discrepancies in calculations

are due to rounding

2021 OUTLOOK

In 2021, Polymetal will continue to invest in both near-mine and greenfield exploration projects in order to increase Ore Reserves.

The key objectives are: ? Complete an updated Ore Reserve estimate at Veduga. ? Prepare an initial Ore Reserve estimate at Talgiy (Albazino hub) and Elevator (Varvara hub) ? Complete an initial Ore Reserve estimate at Tomtor REM project. ? Significantly step-up activity levels in greenfield exploration including commencing of drilling campaigns at

several JVs with juniors.

Ore Reserves and Mineral Resources structure by metal as at 1 January 2021

              Ore Reserves Mineral Resources 
 
Gold          89%          89% 
Silver        11%          11% 
Total         100%         100% 

Ore Reserves reconciliation, GE Moz (1)

 
Ore Reserves,                       Change in    Initial Ore    Ore Reserves, including                    Ore 
01.01.2020    Depletion Revaluation ownership    Reserve        base metals, 01.01.2021   Exclusion of     Reserves, 
                                    (2)          estimate                                 base metals from 01.01.2021 
                                                                                          GE 
25.2          -1.9      +0.6        -0.6         +4.8           28.2                      -0.4             27.9  1. Any discrepancies in calculations are due to rounding.  2. Sale of a stake in Veduga and North Kaluga. 

Ore Reserves and Mineral Resources as at 1 January 2021 (1)

                                 Tonnage Grade   Content 
                                 Mt      GE, g/t GE, Moz 
Ore Reserves 
Proved                           68.6    2.4     5.4 
Probable                         162.4   4.3     22.5 
Proved + Probable                231.0   3.8     27.9 
 
Mineral Resources 
Measured                         14.8    4.0     1.9 
Indicated                        47.7    3.9     6.0 
Measured + Indicated             62.5    3.9     7.9 
Inferred                         82.9    5.2     13.9 
Measured + Indicated + Inferred  145.4   4.7     21.8  1. Mineral Resources and Ore Reserves in accordance with the JORC Code (2012). Mineral Resources are additional to Ore 

Reserves. Detailed tables for Mineral Resources and Ore Reserves with a breakdown by deposits and metals are given

below. PGM and Rare earth metals Mineral Resources are presented separately and are not included in the calculation

of the gold equivalent. Any discrepancies in calculations are due to rounding.

Exploration areas and volumes (mine site exploration excluded) (1), (2)

              Drilling, km 
              2020   2019 
Brownfield 
 
Kyzyl         2.4    5.3 
 
Albazino hub  51.7   13.2 
 
Omolon hub    8.0    11.8 
 
Varvara hub   13.7   45.3 
 
Dukat hub     3.3    0.6 
 
Svetloye      3.6    2.8 
 
Voro hub      12.6   22.3 
 
Subtotal      95.2   102.4 
 
Greenfield 
 
Yakutia       12.7   43.1 
Nezhda        4.9    1.8 
Prognoz       7.8    41.4 
 
Kutyn         25.5   16.1 
 
Veduga        27.0   19.2 
 
Urals         5.1    3.9 
 
Viksha        22.2   11.9 
 
Other         0.7    1.9 
 
Subtotal      93.3   96.1 
Total         188.5  198.5  1. Any discrepancies in calculations are due to rounding.  2. Excluding exploration at JVs. 

EXPLORATION RESULTS

As of 31.12.2020, the company owned 123 licenses for prospecting, exploration and mining of gold, silver, PGMs and base metals. 34 of these licenses were obtained in 2020 while 12 licenses have been relinquished. During the reporting year, geological activities were carried out at 70 projects at 68 licensed properties. In total, 189 km of drilling was completed.

Kyzyl ? In 2020, an initial Ore Reserve estimate for East Bakyrchik (Kyzyl) was completed amounting to 2.2 Moz of gold with

an average grade of 3.7 g/t. The total Kyzyl Ore Reserves increased to 10.1 Moz with an average grade of 5.4 g/t.

The Ore Reserve estimate for East Bakyrchik incorporates data from the 29.9 km drilling campaign (168 drill holes)

conducted in 2015-2020. Additional Kyzyl Mineral Resources amounted to 1.7 Moz of gold for underground mining with

an average grade of 3.8 g/t. ? Also, in 2020, Polymetal continued exploration drilling at East Bakyrchik in order to confirm the possibility an

extension of the open pit and an increase in resources. 10 drill holes totaling 2.4 km were completed resulting in

better definition of the ore bodies' outlines and the boundaries of mineralisation. ? In 2021, further exploration at Eastern Bakyrchik sites is planned to convert open-pit Mineral Resources into the

Indicated category. Additionally, Polymetal is planning exploration drilling to prospect the eastern flank of the

Kyzyl shear zone including the Sarbas and Karmen deposits. Also, deeper levels of the ore body 1 will be traced to

increase Inferred resources.

Albazino hub ? In 2020, exploration activities included exploration drilling (9.3 km) along the flanks and delineation of the ore

body at the Anfisa open pit. ? Exploration was carried out at the Talgiy section of the Urkachik area (92,000 m3 of trenches, 42.4 km of

drilling). In the central zone of the main ore body, detailed exploration activities were conducted to complete

Russian statutory resource estimate (GKZ). Exploration activities have been further continued on the flanks in

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March 01, 2021 02:01 ET (07:01 GMT)

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