Polymetal in JV with UK-based MEN

Polymetal on Tuesday said it had formed a partnership with a company associated with UK-based Mineral Exploration Network for early-stage exploration in Russia's Chaunsk region.

The objective of the venture was to discover high-grade near-surface gold mineralisation that could provide feed for Polymetal's Mayskoye processing plant.

Polymetal said it had agreed to fund a staged exploration campaign from 2020-2023 and was expected to result in an initial JORC-compliant mineral resource or ore reserve estimate.

It would earn 25% by contributing RUB 20m ($0.3m) to the share capital, with an option to increase its stake to 80% by contributing RUB 60m on completion of the first-year field program in 2020. Total investments by Polymetal were not expected to exceed $10m.

“Our strategy of working with junior explorers is gaining momentum,” said chief executive Vitaly Nesis

“MEN has extensive and varied experience in using advanced state-of-the-art methods of prospecting and grassroots exploration.”