OREANDA-NEWS. On October 18, 2007 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its subsidiary Penchenga Gold (to be transferred to the proposed JV with AngloGold Ashanti once the JV is incorporated), won the auction for exploration and mining license of the Sovremenny prospect located in the Krasnoyarsk Territory of Russia, 350km north of Krasnoyarsk, reported the press-centre of Polymetal.

The auction took place in Krasnoyarsk on October 18, 2007, and Polymetal’s winning bid amounted to 26,4m roubles (US$1,1m).

According to the Federal Subsoil Agency (Rosnedra), Sovremenny prospect consists of 4 main mineralization zones. The most prospective one is the Sovremenny zone which contains 40 tons (1,3Moz) of gold (Russian P2 category). Thicknesses of core ore bodies at Sovremenny zone range from 1 to 7 meters with grades ranging from 1 g/t to 12,9 g/t of gold.

The license covering the area of 390 square kilometers (which lies within the same Archean greenstone as Olimpiada, operated by Polyus, and Veduga) will expire 25 years after its issuance later this year.

“Sovremenny prospect is an important contribution to the proposed JV in the Krasnoyarsk Territory”, said Vitaly Nesis, CEO of Polymetal. “Its proximity to Veduga suggests the possibility of logistical and technological synergies in the region, where we expect to further broaden our exploration portfolio in the months to come.”

In 2006 Polymetal and AngloGold Ashanti agreed to enter into a 50/50 strategic alliance to cooperate in exploration, acquisition and development of gold mining opportunities within the Russian Federation. Besides Sovremenny, the proposed JV will own Veduga and Bogunay gold deposits (both in the Krasnoyarsk Territory) and two greenfield exploration projects — Anenskoye in the Krasnoyarsk Territory and APU in Chita Region.