MOSCOW (Reuters) – Russian gold miner Polymetal (MCX: POLY) expects to produce 13.5 million ounces of salable silver per year from the Prognoz deposit, whose ore reserves were estimated on Thursday, the company said.
The company has completed an initial estimate of its Forecast reserves of 142 million ounces, the company said.
“The assessment confirms that the Forecast is one of the best silver development projects in the world,” said the head of the company, Vitaly Nesis, quoted in a press release.
The Prognoz deposit, located in Yakutia, is the largest undeveloped primary silver deposit in Russia.
The initial JORC ore reserve estimate for open pit mining as at 1 March 2020 is 7.9 million tonnes of ore with an average silver grade of 560 grams per tonne or 142 million ounces of silver.
Ore reserves were estimated only for the Glavnaya, Boloto and Yuzhnaya zones.
The open pit mining will last for nine years with ore processing and obtaining a pure concentrate with a high metal content, according to the preliminary feasibility study.
The total capital investment in the project is estimated at $ 319 million.
(Anastasia Lyrchikova. Edited by Elena Fabrichnaya)