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JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its subsidiary Albazino Resources LLC, won the auction for exploration and mining license on the Albazino East prospective area located in the Khabarovsk Territory.
The Albazino East license covers the area of 197 km2 and is located immediately adjacent to the 82 km2 license area covering Polymetal’s Albazino deposit with 2.9 Moz of JORC-compliant resources. The auction took place in Khabarovsk on February 19, 2010, and Polymetal’s winning bid amounted to 1.5m roubles (US$51 thousand). The license will expire 25 years after its issuance in 2010. The licensing agreement stipulates that Polymetal will have to undertake no less than 40,000 m3 trenching and 9,000 meters drilling during the five years after the license is issued. The Albazino East license covers the eastern rim of the Albazino caldera (ancient collapsed volcano). The Albazino deposit is located on the western rim of the same caldera. Results from geophysical and geochemical work to date indicate that Albazino East is a highly promising greenfields target, with potential to add to an already substantial resource base at the Albazino deposit. In the Khabarovsk Territory, Polymetal operates Khakanja gold-silver mine, owns 5 exploration licenses with a total area of c. 2,700 square kilometers, and develops the Albazino-Amursk project. |
