OREANDA-NEWS. On December 11, 2007 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), won the auction for exploration and mining license on Rogovik prospective area located in the Magadan region, 680km north-east of Magadan, and 180 kilometers north of Seimchan township, reported the press-centre of JSC “Polymetal”.

The auction took place in Magadan on December 10, 2007, and Polymetal’s winning bid amounted to 3,3m roubles (US$0,13m).

According to the Federal Subsoil Agency (Rosnedra), potential of the Rogovik prospective area may amount to 5 tons (c. 161 Koz) of gold and 126 tons (c. 4 Moz) of silver (Russian P1 + P3 category) at depth of up to 400 meters.

The license covering the area of 397 square kilometers will expire 25 years after its issuance in 2008. The licensing agreement stipulates that Polymetal will have to drill 40 kilometers during the four years after the license is issued.

“We are pleased with the outcome of the auction”, said Vitaly Nesis, CEO of Polymetal. “Magadan region is one of the key territories for the Company and we are determined to expand our presence here through acquiring new projects, including early stage exploration ones”. 

Polymetal operates two predominantly silver producing mines in the region (Dukat and Lunnoye) and recently started mining at Arylakh deposit, a satellite of Lunnoye. The Company also runs two exploration projects (Dukat Ore Field and Dukat Prospective Area) and is in the process of acquiring Kubaka mine properties, including four mining licenses, from Kinross Gold Corporation.