12 Jul Polyus takes further 25% stake in Russian gold deposit
Polyus Gold (LSE:PLZL), Russia’s largest producer of gold, has announced it will buy an additional 25.1% in the Sukhoi Log deposit in an all-share deal worth US$145.9 million.
The miner will pay state-owned Russian conglomerate Rostec in five tranches over the next five years for the additional stake in the historic deposit, which remains one of the world’s largest untapped gold deposits.
Sukhoi Log is located in the Irkutsk region of Eastern Russia and was discovered in 1961, before being extensively explored by Soviet geologists between the 1970 and 1990s.
A scoping study conducted in 2008 estimated that the deposit contained 930.3 million tonnes (mt) of ore, with 62.8 million ounces of contained gold at a grading of 2.1 g/t gold.
Polyus said that additional exploration work and a feasibility study will take place, but will take another three to four years to be completed.
The company is the world’s eighth largest listed gold miner by output and should surpass its 2020 production of 2.7 million ounces when its Natalka project comes online at the end of the year.