Polymetal enters first stage of Russian gold JV

Polymetal International has entered into the first stage of a joint venture with OJCS Polyus Gold to advance the development of the Nezhdaninskoye gold deposit in Yakutia, Russia.

The company, which produces precious metals in Russia and Kazakhstan, had announced the JV back in December.

As part of the first stage, Polymetal has obtained a 15.3% interest in the JV entity holding 100% of JSC South-Verkhoyansk Mining Company, which is the owner of the mining and exploration license for the property and certain infrastructure adjacent to the deposit.

Nezhdaninskoye is the fourth largest gold deposit in Russia, located in the north-east of Yakutia, about 480 km east from the city of Yakutsk.

The deposit is composed of large scale mineralised zones, representing zones of intense brecciation comprised of crushed and sheared, hydrothermally altered, sedimentary rocks that have been variably enriched in quartz.

At 0900 GMT, Polymetal shares were down 1.7% to 519p.