Polymetal receives construction approval for $249mn Nezhda gold project

A leading precious metals mining group operating in Russia, Kazakhstan and Armenia, has received construction approval for a significant gold project within its portfolio.

Polymetal International announced this week the completion of a Feasibility Study (FS) for its Nezhda project, which has also received approval for construction from the company’s board.

“Nezhda is a long-life, high-grade asset with robust economics”, said Vitaly Nesis, Group CEO of Polymetal. “The project is capital light and will rely heavily on our successful experience at Kyzyl. Nezhda will contribute to dividends per share already in 2022.”

Nezdha is Russia’s fourth largest gold project and the FS highlights a Mineral Resources (inclusive of Ore Reserves) of 12.4 Moz of gold equivalent (“GE”) with an average GE grade of 4.5 g/t, a 1.6 Moz increase compared with the previous estimate.

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The FS envisions 25 years of production from 2021 to 2045. The life of mine plan includes 19 years of conventional open-pit mining from 2019 to 2037, and 17 years of production from underground ore from 2029 to 2045. 

Total capital costs for Nezhda are estimated at US$ 249 million, including US$ 15 million capitalised pre-stipping costs. Throughout 2018, the company has invested approximately US$ 30 million to be into project design, permitting and exploration.