Update on Merger with Polymetals - Notice of Meeting

6. Profile of Polymetals Mining Limited
6.1 History
Polymetals Mining Limited is a base and precious metals producer and explorer who listed on the ASX in
May 2011 after the completion of a $7 million IPO (7 million shares at $1 per share). PLY has a number of
projects focusing on various commodities including gold, zinc, copper, uranium, silver, lead, platinum and
iron ore however its flagship project is the Mt Boppy Gold Mine.
The current Board of Directors comprise of PLY is:
• David Sproule – Non-Executive Chairman
• Frank Terranova – Managing Director
• Jon Parker – Non-Executive Director
• David Carland – Non-Executive Director
6.2 Projects
Canbelego - Mt Boppy Gold Mine
Mt Boppy is a long standing gold mine located 46km east of Cobar in NSW. PLY holds approximately 204km 2
of tenements in the Lachlan Ford Belt, a region which has produced in excess of 5 million ounces of gold.
The Mt Boppy mine operated from 1901 to 1923 and produced approximately 417,000 ounces of gold with
a grade of 15 g/t. After sporadic production of 7,000 ounces of gold in the years to 2002, PLY made the
decision to reopen the mine. In the four years to 2005 the mine produced some 68,000 ounces at a grade
of 5.29 g/t.
PLY undertook a definitive feasibility study in 2012 and in January 2013 announced the results of the
study which indicated a $27 million net present value (before tax) and 100% internal rate of return on
the project (the study assumed a gold price for the study of A$1,600). Unit costs of production were
anticipated to be $1,091 per ounce. The expected capital costs for the project were approximately
$26.6 million with approximately 64,630 ounces of gold to be recovered. The mined ore will be processed
at the existing Mt Boppy plant which will be upgraded to treat 300,000 tonnes of ore per annum.
In January 2013, PLY also secured a mining license and environmental protection license over the
Mt Boppy mine. PLY is currently undertaking the process of securing financing for the project with a
number of proposals having already been received.
Resource and reserve estimates at Mt Boppy and Boppy South are shown in the table below:
Measured & indicated Inferred Total
Grade (Au
Ounces (Au
Grade (Au
Ounces (Au
Grade (Au
Ounces (Au
Deposit
Tonnes (Kt)
g/t)
koz) Tonnes (Kt)
g/t)
koz) Tonnes (Kt)
g/t)
koz)
PLY - Mt Boppy &
Boppy South 684 4.2 92 82 3.9 10 766 4.1 102
Exploration around the Mt Boppy region continues with PLY commencing a diamond drilling campaign in
the March 2013 quarter at a cost of approximately $0.3 million.
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