In the light of recent developments, and in the interests of preserving shareholder value, the Board and the Special Committee have decided to consider all possible options available for divestment of JSC Polymetal and its subsidiaries.
Key facts
| Location | North-east Yakutia, Russia |
| Ownership | 100% |
| Ore Reserves (JORC), Nezhda hub (Nezhda + Prognoz) | 6.5 Moz GE at 4.1 g/t average grade |
| Mineral Resources (JORC), Nezhda hub (Nezhda + Prognoz) | 10.1 Moz GE at 5.1 g/t average grade |
| Mining | Open-pit +underground |
| Processing | 2.2 Mtpa Flotation/Gravity concentration + off-take/ Amursk POX |
| Production start date | October 2021 |
| Life of mine | 2050 |
| Employees | >908 |
Nezhda is Russia’s fourth largest gold property located in the Republic of Sakha (Yakutia). The asset was fully consolidated by Polymetal in 2018. The construction took 38 months and the project was commissioned in October 2021.
The operation currently comprises open-pit mine and 2.2 Mtpa concentrator producing gold, silver and gravity concentrates which are sold to third parties and planned to be fully treated at the Amursk POX-2 after its launch in H2 2024. The underground mine is planned to be commissioned in 2037 and last until 2049. Starting from September 2022, 100% of energy for Nezhda is being sourced via the power line. Tailings from the plant are stored in the form of dry cake.
In the first full year of operation, Nezhda reached its nameplate capacity and recovery. Total annual production amounted to 111 Koz. The Company expects the output to increase as soon as the gravity concentrate is redirected from Voro and Dukat to the intensive cyanidation section of Amursk POX-2 (launched Q2 2023).
The recovery rate at the concentrator is gradually heading towards the design level as the Company implements technological improvements. Grade in ore processed increased according to the mine plan. Mining activity at the Nezhda open-pit was temporarily suspended from the beginning of December 2022 for four months in order to optimise costs. Sufficient ore stockpiles are available to ensure full productivity at the flotation plant for several months.
In 2022, exploration activities were focused on ore zone 3 and Zarechnoye. 1.56 km of core drilling and 16,700 m³ of tranches were completed. The results confirmed the presence of ore mineralisation in ore zone 3.
- Nezhda is powered by the
110-kV line linking mine to the regional grid, powered by a combination of hydro and gas. - Sourced energy from the federal power grid to decrease GHG emissions and avoid diesel power generation and related risks
- 100% of tailings are dry-stacked.
- Increase in throughput to 2.2 Mtpa
- Processing Nezhda gravity concentrate at the Amursk POX intense cyanidation circuit
- Construction of the second stage of dry cake storage.
Nezhda is a gold deposit in Russia, located in northeast Yakutia in the Tompon municipal district, approximately 480 km east from the city of Yakutsk (population of 350,000). The property is remote with access by an all-season unpaved road and no grid connection. The nearest federal highway is 110 km away from the deposit by all-year unpaved road. The highway provides direct access to the Khandyga river port (170 km) and the Nizhniy Bestiakh railway spur (540 km). The climate is characterized by long severe winters and short hot summers. The relief is moderately mountainous with relative altitudes above valley floors not exceeding 600 m.
The Nezhda gold deposit was discovered in 1951 during the Allakh-Yunskaya geological exploration expedition. From 1959, the deposit was subject to several exploration and evaluation initiatives resulting in newly identified ore zones. In 1975, a 180 Kt per annum underground mine and concentrator was commissioned at Nezhda with over 2 Mt of ore mined and processed before the operation was placed on care and maintenance in 2005. Polyus acquired the asset in 2006, subsequently undertaking an extensive exploration program and completing several technical studies.
Polymetal first entered into the joint venture for the property in 2015, acquiring a 15.3% stake in the South-Verkhoyansk Mining Company («SVMC») which owns the mining and exploration license for the property. In July 2017, the company has agreed to increase its stake to 24.7% with a call option to buy out the remaining 75.3% in 2018, subject to certain conditions. In 2018, after the Board approved the start of project construction, Polymetal consolidated 100% interest in Nezhda.
The deposit is composed of large mineralised zones, representing areas of intense brecciation comprised of crushed and sheared, hydrothermally altered, sedimentary rocks that have been variably enriched in quartz. The Nezhda mineralisation is double refractory due to the encapsulation of fine gold particles within sulphide minerals and significant presence of preg-robbing carbonaceous material.
| Ore Reserves | Tonnage, Mt | Gold grade, g/t | Silver grade, g/t | Copper grade, % | GE grade, g/t | Gold, Koz | Silver, Moz | Copper, Kt | GE, Koz |
|---|---|---|---|---|---|---|---|---|---|
| Nezhda | 40.6 | 3.5 | 20 | - | 3.7 | 4,596 | 26.0 | - | 4,818 |
| Prognoz | 8.5 | - | 460 | - | 6.1 | - | 125.1 | - | 1,667 |
| Total | 49.0 | - | - | - | 4.1 | 4,596 | 151.0 | - | 6,486 |
| Mineral Resources | Tonnage, Mt | Gold grade, g/t | Silver grade, g/t | Copper grade, % | GE grade, g/t | Gold, Koz | Silver, Moz | Copper, Kt | GE, Koz |
| Nezhda | 57.3 | 4.8 | 11 | - | 4.9 | 8,771 | 19.7 | - | 8,940 |
| Prognoz | 3.9 | 0.0 | 709 | - | 9.5 | - | 88.2 | - | 1,176 |
| Total | 61.2 | - | - | - | 5.1 | 8,771 | 107.9 | - | 10,116 |
Flowcharts
The open pit will be mined over 18 years via conventional drill-and-blast and truck-shovel methods, with a subsequent gradual switch to underground mining that will last for 13 years. The underground mine will utilise long-hole stoping with partially consolidated backfill.
The concentrator incorporates crushing, two-stage grinding, gravity and flotation, concentration. Concentrates are thickened, filtered, dried and bagged for off-site processing. Tails are thickened, filtered, and dry stacked in a fully lined tailings storage facility. Gold, silver and gravity concentrates which are sold to third parties and planned to be fully treated at the Amursk POX-2 after its launch in H2 2024.