Download 2004 Annual Report - Polymetal

MineralResourcesVladimir T. Ryabukhin,Deputy CEO for MineralResourcesPolymetal holds nine licenses forproducing precious metals andengaging in geological surveys andexploration of gold and silver de−posits in various Russian regions.Based on our current productioncapacity and our mineral reservebase, we will be able to continueproduction at all deposits for atleast the next 15 years. The qual−ity of our mineral reserve base willallow for production volumes tobe significantly increased. We alsoanticipate − based on geologicalsurveys and estimates − that ourmineral reserve base will continueto expand.Mineral Base under JORC Code classification standardsNote:Tonnage(Kt)GradeContentAu (g/t) Ag (g/t) Au (Koz) Ag (Koz)Ore ReservesProvedDukat 1 763 1,3 679,6 74 38 530Lunnoye − − − − −Arylakh − − − − −Vorontsovskoye − − − − −Khakanjinskoye − − − − −Yurievskoye − − − − −Subtotal 1 763 1,3 679,6 74 38 530ProbableDukat 13 802 1,0 511,9 456 227 135Lunnoye 853 2,6 373,8 70 10 256Arylakh 1 366 0,9 524,8 41 23 040Vorontsovskoye 8 558 5,1 7,1 1 402 1 964Khakanjinskoye 6 118 5,2 229,1 1 016 45 060Yurievskoye 235 18,0 13,0 137 98Subtotal 30 932 3,1 309,3 3 122 307 553Total Ore Reserves 32 695 3,0 329,2 3 196 346 083Mineral ResourcesMeasuredDukat 1 594 1,6 835,8 83 42 823Lunnoye − − − − −Arylakh − − − − −Vorontsovskoye − − − − −Khakanjinskoye − − − − −Yurievskoye − − − − −Subtotal 1 594 1,6 835,8 83 42 823IndicatedDukat 13 093 1,2 617,7 522 260 027Lunnoye 755 3,1 453,6 75 11 004Arylakh 1 459 1,3 673,8 59 31 605Vorontsovskoye 15 021 4,1 6,7 2 003 3 224Khakanjinskoye 5 165 6,8 298,8 1 121 49 610Yurievskoye 241 19,4 14,1 151 109Subtotal 35 734 3,4 309,5 3 932 355 580Total 37 327 3,3 332,0 4 014 398 402InferredDukat 2 200 1,2 517,9 82 36 636Lunnoye 3 760 1,8 460,0 216 55 613Arylakh 138 1,2 804,8 5 3 567Vorontsovskoye 4 728 4,4 5,9 665 904Khakanjinskoye − − − − −Yurievskoye 103 11,5 13,7 38 46Subtotal 10 930 2,9 275,4 1 006 96 766Total Mineral Resources 48 257 3,2 319,2 5 021 495 168calculations are based on the following cut−off grades: Dukat − 50 g/t Ag for open−pit and 125 g/t Agfor underground operations; Lunnoye − 125 g/t Ag for open−pit and 162.5 g/t Ag for underground operations; Ary−lakh − 200 g/t Ag for open−pit and 250 g/t Ag for underground operations; Khakanjinskoye − 2 g/t Au eq.; Yurievskoye– 3.5 g/t Au eq.; Vorontsovskoye – 1.4 g/t Au for oxidized ore, 2.3 g/t Au for primary ore.calculations are based on the following precious metals prices: Au − 350 $US/oz., Ag − 6 $US/oz.total figures in the table may differ from summary calculated figures as a result of numbers being rounded.Mineral Resources11