21 Nov 2017 12:16

Polyus starts drilling at Sukhoi Log, verification stage to be completed in July

MOSCOW. Nov 21 (Interfax) - SL Gold, a joint venture (JV) between Polyus and Rostec, has started its drilling program at the Sukhoi Log deposit; one of the largest undeveloped gold deposits in the world.

The program includes verification drilling as well as in-fill, geotechnical, geometallurgical and hydrogeological drilling works, the gold miner said in a statement.

Verification drilling is scheduled for completion in July 2018. Its primary aim will be to confirm the results of historical drilling data and to verify the geological interpretation of the deposit. Following completion of the verification stage, the resource block model will be updated with the new drilling results to determine estimates for measured and indicated mineral resources.

In early 2017, based on historical drilling results, AMC Consultants generated a 3D resource block model for Sukhoi Log, according to which the deposit had resources of 58 million ounces, with a grade of 2.0 g/t.

SL Gold won an auction for Sukhoi Log in January. The JV was originally owned 49% by Rostec and 51% by Polyus; Polyus has now increased its stake to 58.4% and has an option to consolidate the project.

Polyus is Russia's largest gold producer, mining hardrock and alluvial deposits in the Krasnoyarsk territory, Irkutsk, Magadan and Amur regions and Yakutia. Polyus Gold International Limited (PGIL), the beneficiary of which is Suleiman Kerimov's son Said, is the principle shareholder in PJSC Polyus with 82.44% of shares, the free float is 16.34% and the rest of the shares are held in treasury.