OREANDA-NEWS. “Polymetal Engineering” (subsidiary and own scientific-research and projecting center of OJSC “Polymetal” will develop the Miheevskoye copper and gold deposit in Russia, one of the assets of Eureka Mining Plc which was acquired by Celtic in December 2006.

All compliance, licensing and technical work including confirmatory drilling for a bankable feasibility study to be carried out by Polymetal Engineering producer. Russian knowledge and expertise will be brought to the JV which aims at completion of the bankable feasibility study by year end and first copper production from oxide ores in 2008.

The JV will start immediately and develop an overall project plan which has three key objectives: Complete a bankable standard feasibility study on the deposit, including all local permits, approvals and licenses by the end of 2007.

Polymetal Engineering, a fully owned subsidiary of Polymetal, has been contracted to execute the plans of the JV, including obtaining revised license conditions, submission of the Approved Permanent Conditions Report to the Russian State Committee for Mineral Resources ("GKZ"), preparation of a definitive bankable feasibility study for the construction of a heap leach facility ("Proekt") with full government approval in accordance with Russian state standards and a bankable feasibility study with all the necessary approvals to construct a flotation plant.