Polymetal completes acquisition of Komarovskoye gold deposit in Kazakhstan

ASTANA (TCA) — Polymetal International plc has announced the completion of the acquisition of Orion Minerals LLP, the holding company for the Komarovskoye Gold Deposit in Kazakhstan, from Kazzinc LTD, a subsidiary of Glencore plc.

A London listed company, Polymetal is a leading precious metals producer in Russia, Kazakhstan and Armenia.

The acquisition of Komarovskoye was completed on 1 August 2016, following receipt of all required regulatory approvals, Polymetal said.

The total consideration for Komarovskoye is US $100 million payable in cash. In addition, a deferred consideration contingent upon future production levels and gold price performance will be paid to Kazzinc.

According to the JORC Code (2012), Total Probable Ore Reserves at the Komarovskoye deposit are estimated at 14.2 Mt at an average grade of 2.0 g/t Au with 0.9 Moz of contained gold. Mineral Resources2 (additional to Ore Reserves) are estimated at 9.8 Mt of ore at an average grade of 2.2 g/t Au containing 0.7 Moz of gold.

Komarovskoye is located in the north-western Kazakhstan, 10 kilometres from the city of Zhitikara (population 35,000) and approximately 187 kilometres by rail from Polymetal’s Varvarinskoye mine. The total area of subsoil licenses at the project is 104 square km.

“Komarovskoye is an excellent addition to our operating portfolio. We expect further material reserve additions once additional exploration is carried out. Incremental production is planned to start in Q4 of 2016,” said Vitaly Nesis, Group CEO of Polymetal.

Last April, Kanat Dosmukametov, Polymetal’s managing director in Kazakhstan, said Polymetal was planning to become the second-largest gold producer in Kazakhstan with a total output of 13 tons of gold per year from its Varvarinskoye and Kyzyl mines by 2020.

“Polymetal is now among Kazakhstan’s seven largest gold producers, with a market share of 6.2 percent,” Dosmukametov then said.

Sergey Kwan

TCA

Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
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Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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