Polymetal to Construct Gigantic $80M Gold Mine in Russia

SEATTLE (Scrap Monster): Polymetal International plc- the leading precious metals mining group announced its decision to move ahead with the construction of a massive gold mine in Russia. The company’s Board of Directors have give approval for construction of the $80 million Kutyn gold project, located in the Khabarovsk Territory.

According to company press release, conventional open-pit mining will commence with pre-stripping in third quarter next year. It expects to mine the first ore in Q1 2022. The life-of-mine gold production is estimated at 575 Koz. The company expects average annual output of around 90 Koz with an average AISC of US$ 590/oz during the period from 2023 to 2028. The first gold production from the mine is expected by the spring of 2023.

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Polymetal had purchased the asset in 2011 for approximately $66 million in shares. Subsequently, it spent around $55 million on exploration and development of site infrastructure. The pending initial project capital expenditures from second half of the current year are estimated at $80 million.

The Kutyn mine is expected to offset declining volumes from the nearby Albazino mine. The management had decided not to proceed with the project to double the underground mining capacity of Albazino mine, owing to challenging geotechnical conditions. The asset’s production and financial results will be part of Albazino-Amursk segment.