Press releases

Sukhoi Log Mineral Resources Update

PJSC Polyus (LSE, MOEX — PLZL) (“Polyus”, the “Company”) provides an update on Mineral Resources estimate for Sukhoi Log and reports a maiden Indicated Mineral Resource estimate completed by AMC Consultants Pty Ltd (“AMC”) in compliance with JORC Code 2012.

The estimated Mineral Resources at Sukhoi Log stand at 962 mt, with an average grade of 2.1 g/t Au and containing 63 moz of gold as at 30 October 2018. The estimate is a nine per cent increase compared to the previous estimate of 58 moz of gold as at 31 January 2017.

AMC has also upgraded 28 moz of Inferred Mineral Resources to Indicated Mineral Resource.

The 2018 Mineral Resource estimate is based on data from the verification drilling programme available at 14 September 2018 used in conjunction with historic drillhole data.

The Company continues in-fill, deep levels, flanks and other drilling. The drilling campaign will continue until the end of 2019. Polyus plans to drill a total of 197,000 meters, including the approximately 135,000 meters drilled since October 2017. Ongoing assessment of the drilling campaign samples may result in further upgrade of the Mineral Resources estimate classification.

As previously reported, the Company is proceeding with studies to enable estimation by AMC in 2020 of an Ore Reserve estimate based on Indicated Mineral Resources in the 2018 estimate and estimates resulting from the 2019 drilling campaign.

Pavel Grachev, Chief Executive Officer of PJSC Polyus, commented:

The continued exploration success we are achieving at Sukhoi Log is reaffirming its status of one of the best undeveloped deposits globally and a cornerstone of Polyus long-term development strategy.

We plan to proceed with the drilling campaign till the end of 2019 to further enhance definition of the ore body structure, and expect to deliver a maiden Ore Reserve estimate for Sukhoi Log in 2020.

Sukhoi Log Mineral Resources at 30 October 2018 at a 1.0 g/t Au cut-off grade 1

Classification Tonnes (Mt) Gold Grade (g/t) Contained Gold (Moz)
As at 30 October 2018
Inferred Resources 588 1.9 35
Indicated Resources 374 2.4 28
Total Mineral Resources 962 2.1 63
As at 31 January 2017
Inferred Resources 887 2.0 58
Indicated Resources - - -
Total Mineral Resources 887 2.0 58

Historic Data

The historic data available for the resources estimation comprises:

  • 1,185 drillholes of 300,597 m total drilled length with 154,519 m assayed length of predominantly 1 m samples
  • 52 trenches of 10,716 m total length with 7,940 m assayed length
  • 5,548 assays of underground samples

In 2017, relying entirely on historic drillhole data, AMC estimated Mineral Resources for Sukhoi Log which it classified as Inferred Mineral Resources. At that time, the classification predominantly reflected uncertainty about the quality of the historic data.

The Inferred Mineral Resources estimate stood at 887 mt with an average grade of 2.0 g/t Au and containing 58 moz of gold as at 31 January 2017.

Verification Drilling

An exploration and mining licence was granted on 21 February 2017. Polyus has carried out extensive drilling since October 2017 to verify historic data to determine whether the historic drilling could be used to form a Mineral Resource estimate that could be classified as Indicated Resource:

  • The area covered by the verification drilling takes into account geological mineralization boundaries interpreted from geological logging.
  • Verification drillholes were sampled across their entire length.
  • Verification drilling in that area is set out in areas of at least at 200 m by 100 m but on most sections spaced at 200 m by 50 m.
  • The drilling programme has been completed over 11 drill sections.
  • 255 drillholes have been completed for 85,051.5 m of drilling.
  • Assays are available for 201 drillholes for 64,928 m of sampling.
Mineral Resource estimate

Geological logging of both verification and historic drilling was reviewed to ascertain a usable geological basis for determining a domain boundary for the historic data (both hangingwall and footwall positions) used in the Mineral Resource estimate. Based on that review, AMC concluded that:

  • Hangingwall and footwall surfaces can be interpreted using geological logging from verification drilling that can be used for resource estimation.
  • Between the surfaces, gold grade can be estimated using the historic data combined with the verification drillhole data.
  • The grade estimate is comparable globally with an estimate that relies only on verification drillhole data.

Within the geological framework, the mineralized volume has been estimated using a probability model. Gold grade has been estimated using ordinary kriging.

The estimated Mineral Resources in the verification area have been classified as Indicated Mineral Resources based on both historic and verification drillhole data and constrained by hangingwall and footwall surfaces.

Parts of the Mineral Resource estimate outside the verification area have been classified as Inferred Mineral Resources because their estimation relies entirely on historic data and the hangingwall and footwall surfaces cannot be interpreted with sufficient confidence.

The footwall zone has been classified as Inferred Mineral Resources since it is based purely on wide-spaced verification drilling.

AMC’s estimate of Sukhoi Log’s Mineral Resources at 30 October 2018 is 962 mt with an average grade of 2.1 g/t Au and containing 63 moz of gold. The JORC Code Table 1 supporting the Sukhoi Log 2018 Mineral Resource estimate is listed in the Addendum following this statement.

Competent persons

The Mineral Resources estimates are classified and reported according to the JORC Code reporting requirements.

As part of the verification drilling programme. AMC’s Principal Geologist Dean Carville visited the Sukhoi Log site in February and August 2018 to examine the following:

  • Drilling programme
  • Geological logging
  • Sampling
  • Sample preparation
  • Assaying including assay methods and elements to be assayed
  • Assay quality control
  • Density determination
  • Database

The information in this report that relates to Mineral Resources is based on information that has been compiled by Dean Carville, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Dean Carville is a full-time employee of AMC Consultants Pty Ltd. Dean Carville has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Dean Carville consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

In reporting the Mineral Resources referred to in this public release, AMC acted as an independent party, has no interest in the outcomes of Polyus projects, and has no business relationship with Polyus other than undertaking those individual technical consulting assignments as engaged and being paid according to standard per diem rates with reimbursement for out-of-pocket expenses. Therefore, AMC and the Competent Person believe that they are independent in terms of undertaking the assignments which are the subject of the statements.

JORC Code Table 1 for the Sukhoi Log 2018 Mineral Resource estimate is available at the link below:


The Polyus group is the largest gold producer in Russia and one of the top 10 gold miners globally with the lowest cost position. Based on its 2017 Ore Reserves and Mineral Resources, the Polyus group ranks second by attributable gold reserves and gold resources among the world’s largest gold mining companies.

The Polyus group’s principal operations are located in Krasnoyarsk, Irkutsk and Magadan regions and the Sakha Republic (Yakutia).


Investor contact
Victor Drozdov, Director Investor Relations
+7 (495) 641 33 77

Media contact
Victoria Vasilyeva, Director Public Relations
+7 (495) 641 33 77

Forward looking statements

This announcement may contain “forward-looking statements” concerning Polyus and/or Polyus group. Generally, the words “will”, “may”, “should”, “could”, “would”, “can”, “continue”, “opportunity”, “believes”, “expects”, “intends”, “anticipates”, “estimates” or similar expressions identify forward-looking statements. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Forward-looking statements include statements relating to future capital expenditures and business and management strategies and the expansion and growth of Polyus’ and/or Polyus group’s operations. Many of these risks and uncertainties relate to factors that are beyond Polyus’ and/or Polyus group’s ability to control or estimate precisely and therefore undue reliance should not be placed on such statements which speak only as at the date of this announcement. Polyus and/or any Polyus group company assumes no obligation in respect of, and does not intend to update, these forward-looking statements, except as required pursuant to applicable law.

1 Limited by an optimization shell using a gold price assumption of US$1,500/oz