Russian gold and silver mining company Polymetal will have invested about $20 million in its Armenia-based assets in 2016 and 2017
Russian gold and silver mining company Polymetal will have invested about $20 million in its Armenia-based assets in 2016 and 2017, a chief executive of the company said in an interview with Russian daily ‘Izvestia.’
Vitaly Nesis, the CEO of the company, said that Polymetal runs Lichkvaz gold deposit project in the Meghri area of the Syunik province in southern Armenia and earlier this expanded its Armenian operations by acquiring the Kapan Gold Mine project for $25m from Dundee Precious Metals. The Kapan property is located in south eastern Armenia too, 199 miles from the capital Yerevan.
‘We see very good prospects for increasing production volumes and improving economic performance through combining the two assets. This year, we will have invested about $10 million in them, and as much in 2017″, Vitaly Nesis said.
According to him, the company is now producing a little more than 1 ton of gold equivalent, and plans to increase it to 3 – 4 tons in 2019.
Lichkvaz is located in the Meghri area of the Syunik-Marz province of southern Armenia, 236 miles south of Yerevan. The infrastructure in the area was described by Polymetal as well-developed with power, water, accommodation and a skilled labor force readily available. The main economic elements at the deposit are gold and copper, with silver considered a byproduct.
Earlier, the company said total underground mineral resources in Lichkvaz, in accordance with the 2012 JORC Code and confirmed by independent auditors, comprised of 4.3 Mt of ore averaging 2.4 grams per ton, for 0.6 Moz of gold equivalent.
The Kapan property is located in south eastern Armenia, 199 miles from the capital Yerevan. The asset comprises a fully mechanized underground mine with a current capacity of 400 kilotons per annum, a conventional 750 kilotonnes per annum flotation concentrator and various infrastructure facilities. The mine produces gold-copper-silver and zinc concentrate sold to international markets.
Polymetal International Plc is one of the three leading Russian mining companies and a largest producer of gold in the world.
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