Mining company Polymetal International revealed on Monday that its Novopet deposit in Bashkortostan was estimated to hold 2.4m ounces of gold-equivalent at an average grade of 8.0 grams per tonne.
Polymetal stated an initial mineral resource estimate of Novopet, which it owns a 75% stake in, showed 9.2m tonnes of mineralised material, with 37% of it being copper, 35% gold, 23% zinc and 6% silver.
The FTSE 100-listed firm said the resource estimate was based on data from 87 drill holes, with a total length of 50.5 kilometres, including 82 drill holes completed in 2020-2022, after it invested in the project. Inclusive of the $8.0m acquisition price, Polymetal invested approximately $15.0m, or $6.0 per ounce of gold-equivalent.
Chief executive Vitaly Nesis said: “Novopet is the first convincing proof for Polymetal’s strategy of teaming up with exploration juniors. The asset fits our long-term strategy perfectly. It has high grade, low environmental footprint, and huge growth potential. It also more than doubles Polymetal’s exposure to copper”
As of 0900 GMT, Polymetal shares were down 2.01% at 1,196.00p.
