Page 195 - RusRPTMay21

say.
“COVID-19-related travel restrictions could affect POX-2’s completion and installation, we consider,” Sova Capital said in a note. “The company also presented the concept for Pacific POX, which would be another processing unit for refractory ore. Located in Sovetskaya Gavan’, Pacific POX’s location would benefit from the existing power station (120MWt), paved roads and access to both a railway station and all-season seaport.”
At least 50% of Pacific POX’s feed should come from Polymetal’s own mines, while the remaining 50% could come from domestic and overseas suppliers. Although it is at its conceptual stage, the design of Pacific POX should be similar to POX-2 with a capacity of 250-300ktpa.
The recent drilling program at the Veduga site resulted in the identification of highly mineralized ore zones at the deposit’s lower levels.
“The project is therefore likely to see larger mineral reserves, but this will require a larger concentrator and redesigned underground access. The mineralization zones with higher grades are likely to have a higher sulphur content, which would add to processing and capital costs. A full ramp-up is scheduled for 2Q25,” Sova Capital reported.
Petropavlovsk reported 1Q21 Operating Results. The results were relatively weak with total gold output falling by 49% y/y. The company confirmed production guidance for 2021 and the deadlines for key projects.
· Total gold output at Pioneer fell 14% q/q and 9% y/y to 24koz – the y/y decline driven by lower average grade and recoveries
· Albyn gold output fell 21% q/q and 45% y/y to 22koz. Following the depletion of the Albyn deposit late last year, the Albyn plant saw reduced output in 1Q21 due to the switch of processing ore from the nearby Elginskoye deposit, which is harder to mill and where recoveries at the RIP plant are lower than for Albyn ore
· Malomir gold output rose by 22% q/q and 2% y/y to 36koz partially due to higher recoveries from Malomir concentrate treated at POX Plant
· Third party concentrate gold output dropped 16% q/q and 49% y/y to 13.2koz. Output was down y/y due to the lower availability of 3rd-party concentrate for processing and lower grades in the concentrate supplied
· The company reiterated its guidance for total 2021 gold production of 430-470koz, comprised of 370-390koz in own gold production and 60-80koz in gold production from 3rd party concentrate
195 RUSSIA Country Report May 2021 www.intellinews.com