Polymetal launches processing plant at Mayskoye field
MOSCOW. April 16 (Interfax) - Polymetal International plc, which controls Russian gold and silver miner OJSC Polymetal , has commissioned a flotation concentrator at its Mayskoye mine in the Chukotka region.
The plant was "successfully started up, producing its first dry gold concentrate," Polymetal said in a statement.
The Mayskoye concentrator has a nameplate capacity of 850 Kt of ore per annum. The full ramp-up is expected to take six months, with design throughput and recoveries scheduled to be achieved in October 2013.
The concentrate produced will be stockpiled until the start of the summer navigation period (July) Processing of the first batch of Mayskoye concentrate at the Amursk POX plant is scheduled for the fourth quarter of 2013.
Mayskoye, a high-grade refractory gold deposit, is one of the top five deposits in Russia in terms of gold resources. The Mayskoye project consists of an underground mine and a 850 Ktpa on-site flotation concentrator. The ore is processed by conventional flotation on site, and the concentrate produced then shipped to Amursk POX plant and, potentially, to third-party off-takers. The mine is located in the Chaun district of the Chukotka Autonomous Territory in north-eastern Russia. The deposit is accessible all year round via 187 km of improved unpaved road from the town of Pevek, which is a major seaport operating from July to early November. Mayskoye ore reserves are estimated in accordance with the JORC code to contain 2.4 Moz of gold at 9.6 g/t, with additional mineral resources amounting to 4.8 Moz of gold at 8.3 g/t.
The underground mine at Mayskoye has been operational since the beginning of 2010, with 29,976 m of underground development completed during 2009 - 1Q 2013 and 280Kt of ore grading 9.2 g/t gold mined. Active stoping commenced from 2013, with 145 Kt of ore mined in the first quarter of 2013.
"The start-up of the Mayskoye concentrator marks the successful completion of construction of the second generation of Polymetal's growth assets," said Vitaly Nesis, CEO of Polymetal. "This achievement underscores our project execution capabilities in a complex and distant location. During the rest of 2013, we will focus on the ramp-up of the processing plant and securing concentrate off-take arrangements".
Nesis has said Polymetal was in talks with four potential buyers of Mayskoye concentrate, two of them Chinese. Most of the concentrate will be shipped to the Amursk plant for autoclave leaching.
Polymetal told Interfax that $250 million had been invested in the Mayskoye project.
Polymetal said last week it was on track to deliver on 2013 production guidance of 1.2 million oz of gold equivalent production, with an off-take agreement signed for Albazino concentrate, and the Mayskoye concentrator approaching commissioning in April 2013 in accordance with the schedule.
Polymetal assesses the risk of failing to fulfill its 2013 production plans as "moderate" and not surpassing 5% of total output. This scenario is connected with delays in the achievement of design figures at the Amursk facility, which was suspended for six weeks starting at the end of January.
Despite the complications it faced with the launch of the Amursk facility, as a result of which the dates for reaching design productivity were pushed back, Polymetal expects the facility to reach its design indicators in Q4 2013.
