Polyus to Build New Processing Plant at Siberian Gold Mine Complex

SEATTLE (Scrap Monster):  Polyus announced that its Board of Directors have made a final investment decision on construction of a new gold processing plant at the Blagodatnoye mine, Siberia. The company will spend $600 million on Mill-5 construction and upgrade of the mine. The feasibility study has been completed successfully and the construction is expected to commence early next year.

The investment covers the cost of construction of the new mill and an in-pit crushing and conveying (“IPCC”) system, in addition to the upgrade of the mining fleet and relevant infrastructure spending. The company expects to launch Mill-5 in 2025. Upon ramp-up, It is expected to deliver 390,000 ounces of incremental gold volumes.

Polyus expects a recovery rate of 87.9% at the mill during the first five years of operations. The grade in ore processed at Mill-5 is expected to average at 1.4 grams per tonne for the life of the mine. The nominal processing capacity is estimated at 8 million tonnes per annum, which in turn will increase the total throughput capacity at the mine complex to 17 million tonnes per annum combined.

Following the construction of Mill-5, Polyus will focus on developing its giant Sukhoi Log gold deposit in Siberia, which is said to contain almost 20% of Russia’s entire gold reserves.

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