Polymetal's first gold production at Svetloye ahead of schedule

Polymetal International announced the completion of construction of its Svetloye mine in Okhotsk and first gold production ahead of schedule.

The company said construction at Svetloye has been completed nine months ahead of the original schedule. Total capital expenditure comprised $60m, which is 33% below initial project estimates, mostly driven by the significant devaluation of the Russian rouble since the start of construction in 2014.

Polymetal said the leaching process began on 15 August and the first 10,000 ounces of gold were produced at the Merrill Crowe circuit on 29 August.

At present, Svetloye is operating according to the accelerated commissioning schedule, with the heap leach facility running at 100% of its 150-200 Kt per month design capacity.

Based on Polymetal's latest reserve estimates, the planned life of mine is approximately 7 years with total expected production of more than 500,000 ounces of gold.

Chief executive officer Vitaly Nesis said: "Commissioning of Svetloye ahead of schedule and below budget is a significant achievement.

"The focus now shifts towards extending the life-of-mine of this low-risk and low-cost asset."

Svetloye is located in the Russian Far-East in the Okhotsk district of the Khabarovsk region, 300 km from Polymetal's operating Khakanja processing plant and 90 km from the access seaport at Unchi.