Polymetal Int PLC POLY Tamunier resource estimate

  Polymetal Int PLC (POLY) - Tamunier resource estimate

RNS Number : 5222L
Polymetal International PLC
05 September 2012






            

Release time IMMEDIATE
Date         5  September 
             2012





Polymetal International plc

  Maiden gold resource estimated at Tamunier exploration project.



Polymetal International  plc  (LSE:  POLY) (together  with  its  subsidiaries, 
including JSC "Polymetal"  - "Polymetal",  the "Company", or  the "Group")  is 
pleased to announce the results of its independent resource assessment for the
Tamunier project.



    Highlights

· Snowden  Mining Industry  Consultants Inc.("Snowden")  has estimated  a 
JORC-compliant Mineral Resource for the company's Tamunier project of 50Mt at
1.2 g/t gold



· Further  substantial  exploration  potential has  been  identified  with 
ongoing exploration seeking to expand and upgrade the resource estimate



· Polymetal will consider  strategic options in  relation to the  project, 
including a JV with an exploration company

"I am  pleased with  the results  of our  exploration work  at Tamunier"  said 
Vitaly Nesis, CEO of Polymetal. "The size of the deposit is quite substantial.
However, the Tamunier project does not fit with our strategy of  concentrating 
on higher-grade assets and we will, therefore, consider a sale or  partnership 
to advance the development of the asset".

    Location and history

Tamunier, together  with the  adjacent Vasilyevsky  license (combined  license 
area of 53 km^2) is located in Sverdlovsk region of Russia, 182 km north  from 
Voro, an operating mine owned by Polymetal,  and 67 km from the closest  large 
town of  Ivdel (population  18 thousand).  Mineralization was  discovered  at 
Tamunier  in  the  1960s  during  an  exploration  campaign  targeted  at  VMS 
base-metal mineralization. Polymetal acquired  mining and exploration  subsoil 
rights (licenses) from the state for Tamunier in 2007 for US$ 536,000 and  for 
US$ 161,000 for Vasilyevsky in 2011.

Tamunier is located in a historical mining area with good infrastructure.  The 
project is accessible by year-round gravel  road. The nearest paved road is  5 
km away, the 110-kV power line is 18 km away, and the nearest railway spur  is 
41 km away, all to the south.

    Geology and mineralisation

The Tamunier mineralization is characterized by zones of disseminated  sulfide 
(mostly  pyrite)  and  containing  gold.  The  mineralization  is  within   an 
extensively altered volcanoclastic  Devonian sequence  intersected by  several 
north-south traced faults.

Following  geophysical  and  geochemical  studies  and  the  drilling  of  155 
prospecting holes, Polymetal drilled 129  exploration diamond holes and  these 
are the basis of the 2012 Mineral  Resource estimate. The new holes are up  to 
200m depth from the surface with 100mx50m and 50mx25m drill patterns.
This totals to 29,200m  of core drilling and  28,977 samples including  4,000 
assays completed.

Structures hosting the mineralization consist of mineral bearing metasomatites
that have been traced by drillholes for 3 km along strike and for 350 m to 400
m down-dip. The mineralized zone is from 300 m to 700 m thick with  boundaries 
along strike and down-dip that have not been defined. The mineralization  does 
not have clear geological  boundaries and outlines can  only be determined  on 
the basis of sampling.

    

    Metallurgy

Polymetal Engineering  has performed  testwork on  a suite  of  representative 
samples derived from mineralized drill cores  from Tamunier, and based on  the 
results of the testwork has the following findings:

· Direct cyanidation yields low recovery of 57.9% for gold using a  sample 
grind at P80 of -0.074 mm



· Heap leaching is not feasible



· Most gold  can be dissolved  in cyanide  after fine grinding  to P80  at 
-0.028 mm  suggesting the  amenability of  moderate ultrafine  grinding  (UFG) 
metallurgy cyanidation techniques



· Concentration (gravity-flotation) is  feasible to produce a  gold-pyrite 
concentrate grading 16 g/t Au to 20 g/t Au at an overall recovery of 83%  gold 
to concentrate and 5% mass yield



· Testwork on UFG of concentrates and whole ore is ongoing

    Resource estimate

The Tamunier gold  and silver  Mineral Resource was  estimated using  ordinary 
kriging for  silver and  multiple  indicator kriging  for gold.  The  Mineral 
Resource was classified using the guidelines  of the CIM code, are  documented 
in a report using the NI 43-101 standards and highlighted in the table below.

Tamunier Snowden independent Resources estimate as of 27 August 2012^1

Category   Cutoff Tonnage      Grade         Content^3
           g/t Au   Mt    Au, g/t Ag, g/t Au, Moz Ag, Moz
Indicated   0.4    2.76    0.92    7.72    0.08    0.68
Inferred^2  0.4    87.30   0.88    1.29    2.46    3.62
Indicated   0.6    1.65    1.20    10.29   0.06    0.54
Inferred^2  0.6    48.50   1.18    1.70    1.85    2.66
Indicated   0.8    1.07    1.48    13.86   0.05    0.48
Inferred^2  0.8    30.13   1.48    1.93    1.43    1.87



(1)  Mineral  Resources which are  not Mineral Reserves  do not  have 
demonstrated economic  viability. The  estimate of  Mineral Resources  may  be 
materially affected by environmental,  permitting, legal, marketing, or  other 
relevant issues. The  Mineral Resources  in this news  release were  estimated 
using the Canadian Institute  of Mining, Metallurgy  and Petroleum (CIM),  CIM 
Standards on  Mineral  Resources  and  Reserves,  Definitions  and  Guidelines 
prepared by the CIM Standing Committee  on Reserve Definitions and adopted  by 
CIM Council.

(2) The quantity and grade of  reported Inferred resources in this  estimation 
are uncertain in nature and there has been insufficient exploration to  define 
these Inferred Resources as an Indicated  or Measured Mineral Resource and  it 
is uncertain  if further  exploration  will result  in  upgrading them  to  an 
Indicated or Measured Mineral Resource category.

(3) Contained metal may differ due to rounding.

In addition to the Tamunier Mineral Resource there is significant  exploration 
potential. The exploration target, which  has been defined using the  drilling 
information available, is between 7  Mt and 90 Mt, at  a grade of between  0.5 
g/t Au and 1.7 g/t Au.

The Tamunier Mineral Resource estimate was performed by Ivor Jones acting as a
Competent Person  (a  Fellow  of  the Australasian  Institute  of  Mining  and 
Metallurgy and Chartered Professional) and Oleg Valeyev, acting as a Qualified
Person (Member of the Association of Professional Geoscientists of Ontario).

Mr Ivor Jones, (BSc(Hons), MSc, FAusIMM, CP), is the Group General Manager  of 
Geosciences with Snowden  and contributed  in producing  the Mineral  Resource 
estimate based upon  the data  and interpretations provided  by Polymetal.  Mr 
Jones has  sufficient  experience  relevant  to  the  type  of  deposit  under 
consideration and to  the activity  which he is  undertaking to  qualify as  a 
Competent Person as defined under NI43-101. Mr Jones consents to the inclusion
in this report of the matters based on his information in the form and context
in which it  appears and confirms  that this information  is accurate and  not 
false or misleading.



Dr. Oleg Valeyev (B.Sc, M.Sc, Ph.D, MAPGO) is the Head Of Strategy Development
Department  of  Polymetal  Management  Inc.,  and  contributed  by   providing 
geological interpretations  and the  drillhole database  for Mineral  Resource 
estimation. Dr. Valeyev  has sufficient  experience relevant to  the style  of 
mineralisation and type  of deposit  under consideration and  to the  activity 
which he is  undertaking to  qualify as a  Qualified Person  as defined  under 
NI43-101. Dr. Valeyev consents to the inclusion in this report of the  matters 
based on his  information in  the form  and context  in which  it appears  and 
confirms that this information is accurate and not false or misleading.



Enquiries



    Media                        Investor Relations
College Hill   +44 20 7457    Polymetal          ir@polymetalinternational.com
               2020
Leonid Fink                   Maxim Nazimok      

Tony Friend                   Evgenia Onuschenko +7 812 313 5964 (Russia)

                              Elena Revenko      +44 20 7016 9503 (UK)
    Joint Corporate Brokers       
Morgan Stanley +44 20 7425    Canaccord Genuity  +44 20 7523 8350
               8000
Edward Knight                 John Prior

Sandip Patodia                Roger Lambert



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