Saint Petersburg (December 11th, 2006). Polymetal is pleased to
announce that it has formed a joint venture with Mongolrostsvetmet to
develop the Asgat polymetallic deposit in Mongolia.
On December
8th, during an official state visit to Russia by Mongolian President
Nambaryn Enkhbayar, the General Director of Mongolrostsvetmet and
Polymetal signed constituent documents for the joint venture to develop
the Asgat deposit in Mongolia. The joint venture documents have been
approved by the Boards of directors of Mongolrostsvetmet and Polymetal.
The
signed documents create a 50/50 joint venture between the two parties
(Polymetal and Mongolrostsvetmet). The parties agreed that the joint
venture will be registered by the end of 2006.
Asgat — a
polymetallic silver deposit — is located in the northwest of Mongolia
near the Russian border (and the Russian Republics of Altai and Tyva).
The deposit is located approximately 180 km. from Ulgiy, the regional
center of the Nogonnurskiy region. Asgat was first discovered in 1976
by Soviet geologists. And from 1981-1991, search and exploration work,
technological ore research and resource and reserve estimations were
completed at the site. As registered by the Mongolian Ministry of
Energy and Mining on March 7, 1996, the reserves of the deposit are
3,006 tons of silver equivalent with an average head grade of 369 g/t
of silver equivalent and the mineral resources at the licensed area are
4,970 tons of silver equivalent with an average head grade of 297 g/t
of silver equivalent. Asgat’s exploration and production licenses are
valid until 2064.
Based on the agreement, Polymetal agrees to
provide full financing and operational management for Asgat’s
development. Equal partnership within the JV (between Polymetal and
Mongolrostsvetmet) will allow the project to benefit from each of the
company’s competitive advantages. Polymetal will contribute its
geological exploration technology and engineering know-how and will
also provide qualified personnel to start up the project. At the same
time, Mongolrostsvetmet will offer its Mongolian material-technical
base, infrastructure and production capacities.
Commenting on
today’s announcement, Vitaly Nesis, Polymetal CEO said: Cooperation
between Polymetal and Mongolrostsvetmet offers both companies unique
development opportunities. We are highly pleased by the fact that we
have been selected as a strategic partner for this large
inter-governmental project.
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