Engineering & Mining Journal

DEC 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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REGIONAL NEWS - ASIA 28 E&MJ • DECEMBER 2018 www.e-mj.com Polymetal Begins Building Nezhda Gold Mine in Russia Polymetal International has started con- struction at its Nezhda gold project in northeast Yakutia, Russia. The life-of- mine plan includes 19 years of conven - tional open-pit mining from 2019 through 2037 and 17 years of underground min- ing from 2029 through 2045. Average annual production is planned at 180,000 ounces (oz) during the first three full years of operation and 155,000 oz during the first 15 years. First produc- tion is planned for the fourth quarter of 2021, with full ramp-up by the second quarter of 2022. The Nezhda project is located ap- proximately 480 kilometers (km) east of the city of Yakutsk. It is accessed by an all-season unpaved road, but has no grid connection. The climate is characterized by long severe winters and short hot sum- mers. The relief is moderately mountain- ous, with relative altitudes above valley floors not exceeding 600 meters (m). Processing will be through a con ven- tional 1.8-million-metric-tons-per-year (mt/y) flotation concentrator that will include a gravity concentration circuit. Combined recovery to concentrate of 85% is supported by extensive external and in-house metallurgical testing. Grav- ity gold concentrate will be processed at Polymetal's Amursk pressure oxidation fa- cility, while flotation concentrates will be sold to third parties. Preproduction capital expenditures are estimated at $234 million, includ- ing capitalized pre-stripping costs. Total cash costs of production for the open pit are estimated in the range of $620 to $670/oz, and all-in sustaining cash costs are estimated in the range of $700 to $750/oz. The Nezhda deposits includes recov- erable silver. Reserves and resources are reported in gold equivalent ounc- es. Proved and probable ore reserves currently stand at 38 million mt at an average grade of 3.6 g/mt gold equiva- lent, containing 4.4 million gold equiva- lent oz. Open-pit reserves total 3.1 mil- lion oz and currently account for 70% of total reserves. The Nezhda mine plan calls for five open pits to be mined over 19 years by The Nezhda mine (above) is expected to produce 180,000 oz/y during the first three years.

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