Polymetal's Viksha platinum mine 'technically and financially viable'

Precious metals miner Polymetal International said its Viksha platinum mine is “both technically and financially viable” after a mineral resource estimate.

The FTSE 250 company's Viksha project, a platinum, gold and copper deposit in the republic of Karelia in the north-west of Russia, was audited by AMC Consultants, which found that the mineral resource of more than 6m ounces of precious metals offered probability for a standalone mining operation.

Such an operation would be “both feasible technically and financially viable” as the geological and metallurgical conditions are favourable, with contiguous ore bodies offering the potential for low-cost mechanised bulk open-pit mining, with the project located in a well-developed region with good infrastructure and workforce.

The mineralogy has no nickel, which means a conventional flotation process can be used to produce bulk copper and platinum group metals sulphide concentrate.

Chief executive Vitaly Nesis, said: "Viksha successfully delivered our maiden platinum group metals resource. I believe that the project's size, combined with the absence of significant technical challenges, makes it a unique investment opportunity within the global platinum group metals space".

Polymetal's 100%-owned subsidiary, which holds a 20-year mining licence for a project area of 47km squared, intends to complete a feasibility study for an ore reserve estimate in the Viksha project by the third quarter of 2019. If the development decision based on the feasibility study is positive, production could start in 2022.

Shares in Polymetal International were up 2.47% to 1,037p at 0846 BST.