Reuters reported that Russian precious metals miner Polymetal would decide next year whether to double production capacity at its Albazino gold project in Russia's far east after doubling its estimate of mineral resources there.
Mr Vitaly Nesis CEO of Polymetal said that "Exploration results at Albazino highlight the tremendous potential of this asset and pave the way for the expansion decision to be taken in the second half of 2013."
Mr Andrey Abashin spokesman said that the company, controlled by Russian businessmen Mr Alexander Nesis and Mr Alexander Mamut along with Czech private equity investor PPF is considering increasing its capacity to 3 million tonnes of ore per year. Its capital expenditure had not yet been determined.
Mr Sergey Donskoy analyst at Societe Generale said that Polymetal has already invested USD 270 million in the project and would need another about USD 150 million to double the concentrator capacity.
The company has increased its estimate of mineral resources at Albazino to 5.7 million ounces of gold in five ore zones and expects to determine a development plan after completing a study in the Q2. Including Albazino, Polymetal has increased its total resources estimate by 30% to 18 million ounces of gold equivalent since the start of the year.
