Polymetal takes stake in Dolinnoye gold property to 50%
Updated : 08:00
Polymetal increased its stake in the Dolinnoye gold property to 50% in a bid to strengthen the company's Varvara hub concept.
It acquired another 25% interest for $1.6m, completing the earn-in arrangement with its partner on the property.
Located in the Aktogay district of Kazhakstan, the Dolinnoye deposit was expected to become another source of high-grade free-milling feedstock for the Varvara processing plant.
"This transaction further expands and strengthens our Varvara hub concept. We expect first ore to go through the mill in Q3 2017," said Vitaly Nesis, Group CEO of Polymetal.
A rail spur was located 30 kilometres from the property, facilitating the transportation of feedstock, with a dirt road providing year-round access.
Based on Polymetal's share of the project, ore reserves were estimated at 2.6 Mt at 2.4g/t of gold for 202,000 oz. of gold contained.
Additional mineral resources of gold contained were estimated at 494,000 oz..