Polymetal pleased with Lichkvaz mineral resource estimate

The FTSE 250 firm said total underground mineral resources, in accordance with the 2012 JORC Code and confirmed by independent auditors, comprised of 4.3 Mt of ore averaging 2.4 grams per tonne, for 0.6 Moz of gold equivalent.

Lichkvaz is located in the Meghri area of the Syunik-Marz province of southern Armenia, 236 miles south of Yerevan.

The infrastructure in the area was described by Polymetal as well-developed with power, water, accommodation and a skilled labour force readily available. The main economic elements at the deposit are gold and copper, with silver considered a byproduct.

Polymetal said it intends to transport ore mined at Lichkvaz 44 miles to the Kapan concentrator for processing.

The acquisition of the Kapan concentrator, together with the underground mine and related infrastructure was completed by Polymetal on 28 April.

"We are very pleased with the results of exploration and audit work at Lichkvaz. This is an important contribution towards our production expansion at the nearby Kapan concentrator", said Vitaly Nesis, group CEO of Polymetal.

"The asset displays consistently high grades and relatively simple geology while retaining further significant exploration potential.”