Polymetal started ore extraction at Oroch deposit

​Polymetal Int (comprises the assets of Polymetal OJSC) has started to develop the pit at the gold-silver deposit Oroch in the Magadan region.

The ore from Oroch, beginning from Q4 2015, will be shipped by the winter road for processing in 2016 at the gold mining plant Kubaka which is located 110 km off the deposit. The reserves of Oroch will be enough for 4 years.

The total amount of tax payments from Oroch is assessed at more than 1.3 bln roubles.

The Oroch deposit is located 160 km off the regional center – the village of Evensk. The proven reserves of the deposit are 930 thousand tons of ore with the average contents of 4g/ton of gold (3.7 tons) and 172 g/ton of silver (160 tons). The probable reserves are 190 thousand tons of ore with the average contents of 4.2 g/ton of gold (0.8 tons) and 197 g/ton of silver (38 tons).

Oroch was discovered in 1979. Polymetal purchased it in 2008 from Kinross Gold along with the Kubaka and Birkachan deposits. A small part of the sales profit from sale of Oroch gold will be paid to Kinross as a royalty.