Polymetal more than doubles ore reserves at Veduga

updated: 13 June 2019 at 8:42am Author: Iain Gilbert

(Sharecast News) - Miner Polymetal International saw ore reserves at its Veduga gold deposit more than double to 2.8m ounces following an extensive exploration campaign at the site.
An updated JORC-compliant ore reserve estimate on Veduga revealed 18.9 metric tonnes of ore, with an average grade of 4.6 grams per tonne containing 2.8m ounces of gold - a 111% increase on Polymetal's previous estimates.

Open-pit reserves increased 31% to 800,000 ounces of gold at an average grade of 3.8 grams per tonne.

The FTSE 250 resident's new estimates incorporate results from 57 additional diamond drill holes, a total of 24km of drilling, completed by the firm in 2017 and 2018 at a cost of $5m.

Polymetal noted that the bulk of its new reserves were located at depths of 500m to 790m from the surface and that thickness of the ore bodies varied from one to 65 meters.

Chief executive Vitaly Nesis said: "The new reserve numbers confirm that Veduga is large, high-grade, and is likely to be larger still.

"The updated estimate and fresh exploration results should be helpful for potential acquirers of the asset".

As of 0840 BST, Polymetal shares had inched up 0.45% to 888p.