Other explorationand prospectingprojectsIn <strong>2004</strong>, <strong>Polymetal</strong> carried out ex−ploration aimed at finding new oredeposits in other regions of theRussian Federation. Explorationwas carried out by the company’ssubsidiaries: Yenisey Mining andGeological Company, Aurum andImitzoloto.Kuzeevskoye(Yenisey Mining and GeologicalCompany, Krasnoyarsk Terri−tory)Prospecting work − focused ondiscovering gold deposits in theArchean Greenstone Belt of thesouthern part of the YeniseyMountain Ridge − began in <strong>2004</strong>.In the licensed area of 11.2 km2,deep geochemical prospectingwas carried out (1,300 probes),56,000 m3 of trenches were bull−dozed, and 380 m of prospectingboreholes were drilled.These activities have yielded prom−ising geological results. Trenchesin one of the zones of the licensedarea revealed and tracked downtwo adjacent gold leads with hori−zontal lengths of 250 and 450 m,respectively. The capacities of therock bodies range from 1 to 7.0m with average gold head grade of2−25 g/ton. One of the ore bodieswas estimated based on a five deepborehole profile. A contiguous 250m gold mineralization was foundwith the following parameters: ca−pacity of 2.5 m and average headgrade of approximately 10 g/ton.<strong>2004</strong> prospecting work indicatesresources in the area of approxi−mately 643,000 oz. of gold.Deep geochemical explorationof the contours of the licensedarea show four more ore bear−ing zones. Trenching and drillingof these zones is scheduled for2005. If the estimates are cor−rect, the licensed area shouldcontain a medium−large gold de−posit (approximately 1,607,500– 3,215,000 oz.).Aprelkovsko−Peshkovski ore knot(Imitzoloto, Chita Region)Prospecting in the licensed area(Aprelkovsko−Peshkovski ore knot,161 km2) is [are] focused on dis−covering gold porphyry type de−posits. Currently, geochemicalprospecting, geophysical explora−tion and cartographic drilling atthe most promising zone −– Taly— have been carried out. TheZabajkalsky Research Instituteestimated 10,931,000 oz. of goldresources at the Taly zone. Pros−pecting has revealed stockworktype contours in the area of thegold with a length of 1.5 km and awidth of over 500 m. The averagehead grade of gold in the stock−work is between 1−2 g/ton; andthe gold is distributed unevenly.The gold stockwork has not beencontoured either horizontallyor vertically. At present − basedon prospecting in the Taly zone− Imitzoloto estimates its mineralresource base at 3,858,000 oz.of gold. Prospecting work will con−tinue in the future.Fevralskoye(Aurum, Sverdlovsk Region)At the end of 2003, the companybegan prospecting work in thearea of the Reftinski zone. The Fe−vralskoye deposit, which had beenmined using claim sluicing meth−ods during the late 19th centuryto a depth of up to 20–40 m (thelevel of underground streams), islocated in the licensed area. Priorto 2003, deep floor levels of thedeposit had not been explored.As a result, Aurum undertook de−tailed drilling using a 50x30−50m grid on a 200x150 m piece todetermine prospecting possibili−ties. This work allowed us to de−termined industrial parametersand to obtain structural lithologi−cal listings of the gold lead. Gold re−sources in the detailed area are96,450 oz. with an average headgrade of 10 g/ton. Resources ofthe entire deposit are estimatedat 1,929,000 oz. of gold.32 <strong>Polymetal</strong> annual report <strong>2004</strong>
Alexander V. Bulavin,Head of LicensingDepartmentOther geological sur−vey projectsIn <strong>2004</strong>, the company continuedgeological surveying and explora−tion at promising sites in variousRussian regions. At the sametime, the company continuouslymonitors mineral resource condi−tions in Russia to single out poten−tially viable resource deposits.In 2005, <strong>Polymetal</strong> plans to con−tinue exploring and prospectingat drilling levels of 99,500 m andtrenching at 50,000 m3. Addi−tionally, the company will engagein geochemical prospecting. As aresult of these activities, we ex−pect to increase the gold stock inC1+C2 categories by 385,800 oz.and silver (in the same categories)by 16,075,000 oz.Geological survey and exploration33
- Page 1 and 2: Annual report2004St. Petrsburg1
- Page 3 and 4: Annual Report2004St. Petersburg3
- Page 5 and 6: FinancialhighlightIndicator Meas. u
- Page 7 and 8: 2004Key eventsFebruarynew managemen
- Page 9 and 10: koye gold mine. This cost increasec
- Page 11 and 12: MineralResourcesVladimir T. Ryabukh
- Page 13 and 14: Igor V. Venatovsky,First Deputy CEO
- Page 15 and 16: Sergey A. Cherkashin,CFOSalesFinanc
- Page 17 and 18: Denis G. Pavlov,Head of TreasuryDep
- Page 19 and 20: At the Dukat and Lunnoye depos−it
- Page 21 and 22: ProductionfacilitiesoverviewProduct
- Page 23 and 24: Victor R. Wulfert,Managing Director
- Page 25 and 26: Victor R. Wulfert,Managing Director
- Page 27 and 28: Andrey V. Novikov,Managing Director
- Page 29 and 30: Sergey G. Antipin,Managing Director
- Page 31: Vorontsovskoye(Northern Urals Gold,
- Page 35 and 36: Dukat depositconducting a feasibili
- Page 37 and 38: GlobalpositioningIn 2004, world sil
- Page 39 and 40: CorporategovernancePolymetal follow
- Page 41 and 42: Hazardous facilities at the deposit
- Page 43 and 44: Personnel at mining facilitiesCompa
- Page 45 and 46: Upgrading skillsIn 2004, the compan
- Page 47 and 48: ManagementVitaly NESISCEOMr. Nesis
- Page 49 and 50: ZAOPricewaterhouseCoopers AuditSred
- Page 51 and 52: JSC “ISPA “POLYMETAL”STATEMEN
- Page 53 and 54: JSC “ISPA “POLYMETAL”CONSOLID
- Page 55 and 56: The Group’s 100% interest in avar
- Page 57 and 58: Deferred developmentexpendituresIn
- Page 59 and 60: NOTE 3Variable Interest EntityStart
- Page 61 and 62: Investments mainly represent or−d
- Page 63 and 64: Loans from NIKoil Bank in total ofU
- Page 65 and 66: Future payments under capital lease
- Page 67 and 68: Note 24Income TaxThe income tax exp
- Page 69 and 70: In accordance with FAS 141, thecont
- Page 71 and 72: NOTE 30Subsequent eventsBank loan r
- Page 73 and 74: Vorontsovskoye (Northern Urals Gold
- Page 75 and 76: Dukat and Lunnoye (Magadan Silver,
- Page 77 and 78: 1) Per ounce of gold produced or so
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