AUS
NZ
UK
CA
USA
IND
_10_04_2024_16_38_50_427275.jpg)
Summary
- PJSC Polyus will invest in the development of a new mill at its gold mine in Russia
- Mill-5 shall start operations by 2025 and is expected to deliver 390,000 ounces of incremental gold volumes
- Mill-5 project will involve a capital expenditure of around $600 million
Precious metal miner PJSC Polyus (LON:PLZL) will invest in the development of a new mill at its gold mine located in Blagodatnoye, Russia. PJSC Polyus is the world's fourth-largest gold mining company in terms of output and is amongst the most economical gold producers in the world.
In a press release, the board of directors at PJSC Polyus said that the company is looking forward to financing the Mill-5 project at the Blagodatnoye complex. The final investment decision to commence the construction of Mill-5 has been taken upon successful completion of the Feasibility Study and due diligence of the project.
Also read: Gold jumps to a one-week high on hopes of Fed stimulus
The feasibility study findings estimates that the open-pit mining activities should be continued for simultaneous throughput expansion to the bottom elevation of -70mrl in order to ensure efficiency and sustainable development for the long-term development of Blagodatnoye.
Polyus expects to increase the proportional use of large-scale mining equipment for expediting the pit development. The feasibility study also suggested that instead of conventional truck delivery, an in-pit crushing and conveying system should be introduced, which is expected to deliver ore to both Mill-4 and Mill-5.
In terms of processing capacity, Mill-5 contributes around 8 million tonnes per annum to the throughput capacity at the Blagodatnoye complex. The cumulative throughput capacity is around 17 million tonnes per annum. The company is expected to replicate the flowsheet at Mill-4 and Mill-5 to apply a conventional gravity flotation.
Mill-5 is expected to have a healthy recovery rate of 87.9 per cent during the first five years of operations.
Also read: Gold stocks in the UK-Key factors to consider before investing
PJSC Polyus is expected to shell out around $600 million as a construction capex for Mill-5. This investment would be channelised to upgrade the mining fleet and relevant infrastructure spending along with the construction of the new mill and in-pit crushing and conveying system.
The management expects the launch of the Mill-5 by 2025 in the wake of the current construction schedule. Mill-5 is expected to provide 390,000 ounces of incremental gold capacity post upgradation of construction infrastructure.
